Callisto to Present Recent Data on Atiprimod's Anti-Tumor Response at Conference on Cancer Treatment; Company Scientist to Review Encouraging Drug Candidate Results at GTCbio Meeting for Cancer Researchers and Clinicians.

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, announced today that Dr. Kunwar Shailubhai, Senior Vice President of Discovery Research, will give a presentation on the Company's cancer drug candidate Atiprimod at GTCbio, an important gathering of scientists and pharmaceutical industry professionals specializing in anti-angiogenesis and growth-factor-based anticancer research.

Dr. Shailubhai has been invited to present at the GTCBio Conference on Angiogenesis Research & Therapies along with representatives of many of the largest and most important pharmaceutical companies in the world.

Dr. Shailubhai's talk, entitled, "Atiprimod is a New Class of Anti-Angiogenic Drug Candidate," will cover in-vitro and animal model data that have provided the rationale for clinical development of Atiprimod.

Atiprimod is presently in two Phase I/IIa clinical trials: 1) relapsed or refractory multiple myeloma patients, and 2) advanced cancer patients. Callisto recently announced that based on a clear response in a patient with carcinoid cancer, along with additional encouraging data in other carcinoid patients, the Company plans to initiate a Phase I/II clinical trial specifically in carcinoid patients.

Carcinoid tumors, or carcinoids, originate in hormone-producing cells of the gastrointestinal (GI) tract, the respiratory tract, the hepatobiliary (liver) system and the reproductive glands. The most common site of origin is the GI tract, with tumors often developing in the rectum, and other sections of the small intestine. In particular, Atiprimod may provide new hope for patients with advanced carcinoid tumors of the liver and GI tract. Common sites of carcinoid metastases include liver, lungs, bone and lymph nodes. Carcinoid tumors that metastasize to the liver have a poor prognosis. Traditionally, chemotherapy relieves symptoms in less than 30% of cases of metastatic carcinoid tumors, usually for less than 1 year.

Callisto believes there exists a significant "unmet medical need" for new treatments for advanced and metastatic carcinoid tumors, because there are no FDA-approved drugs for these types of tumors. The encouraging carcinoid data provide an additional drug development and approval path for Atiprimod that has the potential to give Callisto its first approved drug considerably earlier than the Company previously expected.

"We are very excited to share our work on Atiprimod with our colleagues in research and the pharmaceutical industry," said Dr. Shailubhai. "Diseases such as multiple myeloma and carcinoid cancer have proven extremely difficult to treat. Our research provides a framework for the ongoing clinical trials on Atiprimod that we hope someday may provide a new treatment for these desperately ill cancer patients. We are continuing to explore Atiprimod's unique characteristics, including its anti-angiogenic activity to starve tumors by preventing the formation of the blood vasculature that enable these cancers to grow."

Dr. Shailubhai's presentation is scheduled for 1:30 pm on March 9 at the two-day conference being held March 9-10, 2006, at the Old Town Courtyard by Marriott, in San Diego, California. The conference will also feature speakers from major pharmaceutical companies including Pfizer, GlaxoSmithKline, Amgen, Eli Lilly & Co. and Bayer Pharmaceuticals.

About GTCbio

GTCbio is designed to highlight exciting new research and development of angiogenesis inhibitors and growth factors. GTCbio produces conferences that facilitate the exchange of biopharmaceutical and biomedical intelligence between industry leaders, academic and government organizations, and the financial community. Our conferences focus on recent developments in biotechnology, status of emerging treatments, and research on future advances. GTCbio also provides staffing and placement assistance within the biotech sector, and consults on intellectual property awareness, evaluation and alliances. GTCbio is a subsidiary of Global Technology Community, LLC, a privately held company founded in 2002. For more information about the Angiogenesis Research & Therapeutics Conference, please visit: http://www.gtcbio.com/program.asp?cid=22.

About Callisto Pharmaceuticals, Inc.

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. Recently, Callisto announced that Guanilib, a proprietary guanylate cyclase receptor agonist (GCRA), showed significant anti-inflammatory activity in a mouse model of colitis. The GCRA technology is covered in a recent patent allowance covering applications in GI inflammation and colon cancer. Callisto also has 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.

Forward-Looking Statements

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.