Callisto Issues Updated Investor Fact Sheet to Reflect Latest Intellectual Property Expansion and Business Developments; Company Notes Recent Clinical Milestones and Strategic Initiatives.

NEW YORK -- Callisto Pharmaceuticals, Inc. (AMEX:KAL)(FWB:CA4), a developer of new drug treatments in the fight against cancer and other major health threats, today announced the online availability of an updated Investor Fact Sheet that provides a succinct corporate overview with highlights of the Company's high-growth business strategy, world-class scientific leadership, intellectual property expansion, main industry drivers, latest clinical successes and other vital statistics. E[acute accent]The new Investor Fact Sheet reflects continued growth in the Company's market cap. It also notes the Company's recent establishment of a Department of Intellectual Property whose mission is to help accelerate expansion of the Company's intellectual property portfolio, and broaden asset protection through an aggressive patent strategy. E[acute accent]"Our most recent Investor Fact Sheet further indicates Callisto Pharmaceuticals' progress in clinical and long-term strategic objectives," said Dr. Gary S. Jacob, CEO and Chief Scientific Officer of Callisto. "We already have two important anti-cancer drugs in clinical trials, and have announced plans to continue to expand our pipeline of drugs to treat cancer, related diseases and other major health markets." E[acute accent]Callisto's drug development programs and recent milestones include:

E[acute accent]--Two drugs to treat relapsed or refractory leukemia and multiple myeloma, serious cancers of the blood. Patients that have relapsed or refractory cases have stopped responding to available treatments. Callisto currently has two drugs in clinical trials being developed as treatments for such patients: L-annamycin, for two major forms of leukemia, and Atiprimod, for multiple myeloma.

E[acute accent]--The Company has also recently received a Notice of Allowance on a patent for a first-in-class drug, currently known as SP304, which is being developed to treat gastrointestinal diseases such as ulcerative colitis. It may also act as a preventative for colon cancer. The Company has also received a grant from the National Institute of Allergy and Infectious Diseases to fund development of a counterterrorism-related biodefense compound for protection against the deadly bacterial threats, staphylococcus and streptococcus.

E[acute accent]--Establishment of a Department of Intellectual Property to accelerate growth of the Company's intellectual property portfolio and to increase protection of its assets through an aggressive patent strategy.

E[acute accent]The updated Investor Fact Sheet is now available online and accessible free of charge by visiting http://www.trilogy-capital.com/tcp/callisto/factsheet.html.

E[acute accent]About Callisto Pharmaceuticals, Inc.

E[acute accent]Callisto is a biopharmaceutical company focused on the development of new drugs to treat various forms of cancer and other serious afflictions. Callisto's drug candidates in development currently include anti-cancer agents in clinical development, in addition to drugs for a range of other significant health care market segments, including biodefense. One of the Company's lead drug candidates, L-Annamycin, is being developed as a treatment for forms of relapsed leukemia, a currently incurable blood cancer. Callisto initiated a clinical trial of L-Annamycin in adult relapsed acute lymphocytic leukemia patients in 4Q 2005. L-Annamycin, a new compound from the anthracycline family of proven anti-cancer drugs, has a novel therapeutic profile, including activity against resistant diseases and significantly reduced cardiotoxicity, or damage to the heart, compared to currently available drug alternatives. Another anti-cancer drug, Atiprimod, is in development to treat relapsed multiple myeloma, a blood cancer. Atiprimod has entered Phase I/IIa human clinical trials in relapsed multiple myeloma patients. Callisto also has drugs in preclinical development for gastro-intestinal inflammation, and a program focused on the development of a drug to protect against Staphylococcus and Streptococcus biowarfare agents. Callisto has exclusive worldwide licenses from AnorMED Inc. and M.D. Anderson Cancer Center to develop, manufacture, use and sell Atiprimod and L-Annamycin, respectively. For investor-specific information about Callisto, including recent news and stock price data, please visit http://www.trilogy-capital.com/tcp/callisto/. For an Investor Fact Sheet about Callisto, please visit http://www.trilogy-capital.com/tcp/callisto/factsheet.html. To view an informational presentation of the Company's development pipeline of drug candidates, visit http://www.trilogy-capital.com/tcp/callisto/powerpoint.html. Callisto is also listed on the Frankfurt Stock Exchange under the ticker symbol CA4. For additional information, visit www.callistopharma.com.

E[acute accent]Forward-Looking Statements

E[acute accent]Certain statements made in this press release are forward-looking. Such statements are indicated by words such as "expect," "should," "anticipate" and similar words indicating uncertainty in facts and figures. Although Callisto believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to be correct. As discussed in the Callisto Pharmaceuticals Annual Report on Form 10-K/A for the year ended December 31, 2004, and other periodic reports, as filed with the Securities and Exchange Commission, actual results could differ materially from those projected in the forward-looking statements as a result of the following factors, among others: uncertainties associated with product development, the risk that products that appeared promising in early clinical trials do not demonstrate efficacy in larger-scale clinical trials, the risk that Callisto will not obtain approval to market its products, the risks associated with dependence upon key personnel and the need for additional financing.