Hana Biosciences Initiates Phase I Clinical Trial of a Targeted Chemotherapy Agent for Patients With Advanced Solid Tumors.

SOUTH SAN FRANCISCO, Calif. -- Hana Biosciences (NASDAQ:HNAB), a biopharmaceutical company focused on advancing cancer care, today announced the initiation of a Phase I clinical study of Sphingosome Encapsulated Vinorelbine in patients with advanced solid tumors.

This Phase I study is designed to assess the safety, tolerability and preliminary efficacy of Sphingosome Encapsulated Vinorelbine in patients with advanced solid tumors. Hana is developing this compound for patients with non-small cell lung cancer and breast cancer, among others. The study is being conducted at the Cancer Therapy and Research Center, San Antonio and McGill University, Montreal.

"This trial affirms Hana Biosciences' commitment to the continued advancement of promising product candidates with the potential to improve patient care," said Gregory Berk, M.D, Senior Vice President and Chief Medical Officer. "We believe this novel product may allow for improved delivery and pharmaceutical attributes of vinorelbine, a well-established therapy for lung and breast cancer.

About Vinorelbine and Sphingosomal Targeted Drug Delivery 

Vinorelbine, a semi-synthetic vinca alkaloid, is a microtubule inhibitor that has been approved for use as a single agent or in combination with cisplatin for the first-line treatment of advanced non-small cell lung cancer. Vinorelbine is also widely used for the treatment of breast cancer.

Sphingosomal encapsulation is a targeted liposomal drug delivery platform, which is designed to significantly increase tumor targeting and duration of exposure for cell cycle-specific anticancer agents. Encapsulation also allows an increase in dose intensity without increased toxicity, in preclinical studies. Vincristine, vinorelbine and topotecan are approved cancer therapies which have been selected for sphingosomal formulation specifically for their ability to benefit from this novel encapsulation.

The possible advantages of sphingosomal drug delivery include:

--Longer circulation time in plasma delivers more of the therapeutic agent to targeted tumor sites over a longer period of time. To stabilize the lipid bilayer walls and retain active drug within the aqueous interior, this new generation liposomal technology uses sphingomyelin, a safe, biologically inert macromolecule whose amide backbone is resistant to hydrolysis. The increased rigidity of the liposomal walls prolongs the circulating life of liposomes and significantly extends the duration of drug release.

--Slow release of the drug from extravasated sphingosomes increases drug levels within the tumor, extends drug exposure through multiple cell cycles, and significantly enhances tumor cell killing. The immature neovasculature within tumors is created during angiogenesis and has numerous imperfections, pores and discontinuities up to 800 nm in size. With an average diameter of approximately 100 nm, sphingosomes readily extravasate through these pores and accumulate within the tumor and slowly release the encapsulated drug.

--Increased drug concentration at the tumor site is believed to be associated with increased clinical activity. The link between drug exposure and anti-tumor efficacy is especially pronounced for cell cycle-specific agents such as vincristine, vinorelbine and topotecan, which kill tumor cells by interfering with mitosis at a precise step during the cancer cell cycle. This proprietary sphingosomal drug delivery platform is designed to encapsulate these agents within the aqueous interior of small liposomes in order to enhance the therapeutic index of these existing anticancer treatments.

This sphingosome encapsulated technology was discovered at the University of British Columbia and subsequently developed by Inex Pharmaceuticals Corporation. In May 2006, Hana Biosciences licensed three drug candidates utilizing this technology from Inex.

About Non-Small Cell Lung Cancer (NSCLC)

According to the World Health Organization, there are more than 1.2 million cases worldwide of lung and bronchial cancer each year, causing approximately 1.1 million deaths annually. It is estimated that more than 173,000 people will be diagnosed with lung cancer in the United States in 2005. According to the National Cancer Institute, lung cancer is the single largest cause of cancer deaths in the United States and is responsible for nearly 30 percent of cancer deaths in this country. NSCLC accounts for more than 80 percent of all lung cancers. Despite recent therapeutic advances in NSCLC, the overall survival remains poor and there is a need for improved treatments.

About Hana Biosciences, Inc.

Hana Biosciences, Inc. (NASDAQ:HNAB) is a South San Francisco, CA-based biopharmaceutical company focused on acquiring, developing, and commercializing innovative products to advance cancer care. The company is committed to creating value by building a world-class team, accelerating the development of lead product candidates, expanding its pipeline by being the alliance partner of choice, and nurturing a unique company culture. Additional information on Hana Biosciences can be found at www.hanabiosciences.com.

About Inex Pharmaceuticals Corporation

Inex Pharmaceuticals Corporation is a Canadian biopharmaceutical company developing and commercializing proprietary drugs and drug delivery systems to improve the treatment of cancer. Since 1996, INEX common shares have been trading on the Toronto Stock Exchange under the symbol "IEX". Additional information on Inex Pharmaceuticals can be found at www.inexpharm.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause Hana's actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as "anticipates," "expects," "plans," "believes," "intends," and similar words or phrases. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements. Among other things, there can be no assurances that any of Hana's development efforts relating to its product candidates will be successful. Other risks that may affect forward-looking information contained in this press release include the possibility of being unable to obtain regulatory approval of Hana's product candidates, the risk that the results of clinical trials may not support Hana's claims, Hana's reliance on third-party researchers to develop its product candidates, and its lack of experience in developing and commercializing pharmaceutical products. Additional risks are described in the company's Quarterly Report on Form 10-Q for the three months ended March 31, 2006 filed with the Securities and Exchange Commission. Hana assumes no obligation to update these statements, except as required by law.