CAN-FITE OUT-LICENSES RIGHTS FOR ITS DRUG, CF101, IN JAPAN TO THE SEIKAGAKU CORPORATION AND EXPECTS TO RECEIVE US$ 19.5 MILLION FROM LICENSING FEES AND MILESTONE PAYMENTS AND COLLECT SUBSTANTIAL

Can-Fite BioPharma, a biotechnology company traded on the Tel Aviv Stock Exchange, announced that it has entered into an exclusive license agreement with a Japanese pharmaceutical company, Seikagaku Corporation, to develop and market CF101 in Japan for the treatment of inflammatory indications including rheumatoid arthritis (RA) but not including ophthalmic indications. Under the terms of the agreement, Can-Fite will receive an aggregate consideration of approximately US$ 19.5 million, according to agreed milestones, and collect substantial royalties from the sale of CF101 in Japan. BioSpace (http://home.businesswire.com/portal/site/biospace/index.jsp?epi-content=GENERIC&newsId=20060925005516&ndmHsc=v2*A1158577200000*B1159218704000*DgroupByDate*J2*N1000122&newsLang=en&beanID=1229976837&viewID=news_view)