Kibow Biotech Inc Announces a Licensing Agreement of its “Enteric Dialysis™” Technology and “Kibow Biotics®” Product Formulation to Vetoquinol USA Inc

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Kibow Biotics® (AZODYL™) targets uremic toxins, reduces Azotemia in dogs and cats with Chronic Kidney Disease. Hence, this product is also expected to improve the quality of live and longetivity in pets. Similar applications in human kidney failure applications is being clinically tested by Kibow Biotech Inc.

Kibow Biotech Inc, a privately held firm confirmed and formally announced their exclusive royalty bearing licensing agreement on their technology and products towards veterinary applications to Vetoquinol USA ( also a privately held subsidiary of Vetoquinol SA , France).    Under this agreement Vetoquinol USA will have the right to purchase, manufacture, and market and sell the products with its own trade name for kidney failure cats and dogs in the US market. Presently the Kibow Biotics® product formulation is manufactured and sold by Kibow Biotech Inc as an enteric coated gel cap. Beginning July 1, 2006 Kibow will cease marketing and selling its veterinary product in the United States. From this date onwards, Vetoquinol USA will begin marketing the product with a new trade name “AZODYL” ( made up by a combination of AZOTEMIA and DIALYSIS), an attractive and relevant name chosen by Vetoquinol USA.

According to Ian Parker, Managing Director (CEO) of Vetoquinol USA, chronic kidney disease affects on the average 10.8% cats and 5.2% dogs and is a leading cause of death among companion animals in the US. Dr. Eric Linn, Director of Scientific Services who has evaluated all scientific and clinical data accomplished by Kibow Biotech and by other independent veterinarians expressed that “AZODYL” will be an important product that will also complement their existing product “Epakitin™”, a phosphate binder, launched by their firm last year in USA towards kidney failure for cats and dogs.

Vetoquinol SA, France has been given the option of licensing Kibow’s technology and products for exclusive worldwide rights towards veterinary applications within 18 months of this agreement. Besides royalty payments, Kibow has also received from Vetoquinol USA an upfront technology acquisition fee for the veterinary applications. Financial terms of this agreement have been held in confidence and not disclosed.

“Although it has taken over eight years of intense R&D, clinical and scientific validation, we are pleased to announce our agreement with Vetoquinol USA,” said Jack Dickstein, Ph.D. - President and co-founder of Kibow Biotech Inc. He also cited “We are committed to providing kidney failure patients with access to technologies and products that are of greatest benefit and importance worldwide”. Kibow Biotics® product formulation is poised for its ease of use, convenience, cost effectiveness and affordability in poor and developing countries.

“This agreement with Vetoquinol USA and its parent firm Vetoquinol SA, France further validates the significance and potential benefits of Kibow’s “Enteric Dialysis™” technology concept and it’s clinical and scientific validation of “kibow Biotics®” product formulation in live kidney failure cats and dogs”, said Natarajan Ranganathan, Ph.D., Senior Vice President and the lead scientist of Kibow Biotech Inc. He also cited that Kibow’s original mission and vision is indeed towards human kidney failure patients worldwide. He further stressed that he and his Kibow R&D team will not rest until that mission is also accomplished ASAP. Kibow is planning several abbreviated human clinical trials prior to launching the product as a dietary supplement in 2007. The company also has plans to develop its product further as a medical food category (a prescription product). This can qualify for a medical reimbursement status for chronic kidney failure patients in the US. It is targeted for launch in the year 2008.

About Kibow Biotech Inc, PA.

Kibow Biotech Inc is an eight year old emerging stage biotechnology company having recently relocated from the Science Center in Philadelphia to its own western suburban facilities in Newtown Square Business Center, PA. The company’s mission is dedicated to finding a simpler, convenient and cost effective solution towards kidney failure patients worldwide. The company’s first generation product called “Kibow Biotics®” – an orally consumable enterically coated Gel Cap product formulation is composed of food grade microbes (Probiotics) which utilizes or mops up the uremic toxins diffusing into the bowel as a consequence of increased level of these toxins in the blood. It is targeted to help augment or maintain kidney function both for Chronic Kidney Disease (CKD) patients (pre-dialysis) and End Stage Renal Disease (ESRD) patients. The company is in the process of conducting multi-site abbreviated human clinical trials in various countries including USA, Canada, Japan, Mexico and India to establish the clinical validity and efficacy of their Kibow Biotics® first generation probiotics product formulation. More information about Kibow Biotech Inc is available at:

About Vetoquinol USA:

Vétoquinol is a family-owned, independent company exclusively and passionately dedicated to all aspects of animal health: research, development, manufacturing, marketing and sales. Since 1933, they have been helping veterinarians with their acknowledged expertise in the fields of anti-infectives, anti-inflammatories, anti-parasitics, vaccines and nutraceuticals. Based in France, Vétoquinol now supplies products in 5 continents with a network of subsidiaries in 15 countries and distributors in over 80. In 2002 Vétoquinol acquired Evsco Pharmaceuticals and Tomlyn Products to form Vétoquinol USA. As they become more and more international Vetoquinol is proud to have expanded without betraying their core values. They remain independent - a humane company with strong group spirit - striving to improve animal health and honoring their long established ideals: social awareness, sensitive relationships and a passion for business combined with real determination. More information about Vetoquinol is available at:

Forward-looking Statement Disclaimer: Kibow Biotech Inc and VetoquinolUSA company’s websites contain both historical information and also contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks, uncertainties and other factors that may cause the actual results or performance of the Company to be materially different from such statements or from any future results or performance implied thereby. Factors which could cause the Company's results or performance to differ from current expectations include, but are not limited to, timely regulatory approval of the Company's products; the ability to comply with regulatory requirements applicable to the manufacture and marketing of the Company's products; the Company's ability to obtain and enforce effective patents; the non-infringement of third party patents or proprietary rights by the Company and its products; the establishment and maintenance of strategic collaborative and commercial relationships; The Companies disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Natarajan Ranganathan