Performance Profiler Quarterly Magazine Initiates Coverage of Callisto Following Series of Key Positive News Announcements; Prominent Investment Publication Cites Shareholder Growth Opportunities, Drug Pipeline Potential, Strong Management Team.

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, has announced that Performance Profiler Quarterly, a widely-read investment magazine, has initiated paid coverage of the Company in a report that cites favorable technical analysis of the share price and recent significant news announcements, among other factors.

Performance Profiler Quarterly is an investment magazine with a circulation of more than 1 million qualified subscribers. The magazine and online information source for investors focuses on high-growth investment opportunities in the microcap marketplace. "In each issue of the magazine we highlight several microcap companies that we feel are ready for tremendous growth both in revenue and in share price," according to Performance Profiler.

Callisto is included in the current issue of Performance Profiler Quarterly. The magazine cited a number of factors in its report on Callisto, including technical analysis of the stock price, key personnel and scientific officers and the Company's pipeline of proprietary anti-cancer drug candidates L-Annamycin and Atiprimod. Both drugs are currently in clinical trials.

"This is an exciting developing story which we urge further research on," the Performance Profiler Quarterly report concluded.

The Performance Profiler report also cited key news such as Callisto's recent announcement that the U.S. Patent and Trademark Office has given a Notice of Allowance on a Patent for a novel drug compound called SP304, since renamed Guanilib. The first-in-class drug candidate was created by Callisto scientists to treat and prevent a variety of serious gastro-intestinal inflammatory diseases, including ulcerative colitis, a chronic and currently incurable disease which afflicts approximately 500,000 Americans.

Callisto engaged Performance Profiler to conduct unbiased coverage of the Company under the compensation terms described below, said Dr. Gary S. Jacob, Callisto CEO and Chief Scientific Officer.

For more information about Performance Profiler Quarterly, please visit http://www.performanceprofilequarterly.com.

About Performance Profiler

Performance Profiler - the quarterly magazine that helps you capitalize on powerful opportunities in the microcap marketplace - is the information source that can assist you in identifying emerging companies and gaining the kind of high returns you've only dreamed about. Knowledgeable professionals throughout the investment community including stock analysts, financial advisors and fund managers are increasingly recommending that microcaps be a percentage of each investor's diversified holdings. With Performance Profiler Quarterly, you'll have the advantage you need to maximize your success in microcap investing. We've assembled an enviable team of microcap experts, anchored by an Advisory Board consisting of savvy market veterans. Our team knows how to recognize true shareholder value when it matters most: right from the beginning when a company with solid fundamentals, growing sales, experienced management and innovative ideas can become the next Microsoft or Intel. Fact is, our track record speaks for itself...with our winners dramatically outweighing our losers, again and again. One of the reasons is because we do much more than pinpoint potential big gainers in the microcap market. We execute the due-diligence, learn everything there is to know about the upside possibilities for the companies we identify, including what their industries are all about and what their competitors are doing. And perhaps most important, we have interests in these companies ourselves, putting our own money into what we believe will deliver incredible gains. But we don't stop there. We also help ensure the success of the microcaps we focus on by placing each company in the best and most visible position of public awareness.

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, 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.

Compensation Disclosures

This publicly distributed report of the Performance Profiler Quarterly (the "PPQ") was mailed to 1,000,000 qualified investors. The production and distribution costs of the initial issues of the PPQ report was funded by the companies featured herein or by third parties associated with such companies. The publishers of the PPQ received the following compensation: from Callisto Pharmaceuticals, Inc. (KAL) $50,000 cash and 50,000 shares of restricted common stock, and from a non-affiliated third party, warrants to purchase 50,000 shares of common stock at an exercise price of $1.03 per share. Any and all company and/or third party funding of the PPQ has been conducted in a manner so as to be in accordance with any and all applicable securities laws, rules and regulations and other applicable laws.

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.