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PHASE II TRIAL INITIATED FOR KOS-862

July 3, 2006

Kosan Biosciencees has begun a Phase II clinical trial to evaluate the safety and efficacy of KOS-862 (Epothilone D) as a monotherapy for prostate cancer.

KOS-862 is a polyketide that inhibits cancer cells by the same mechanism as paclitaxel. Preclinical models have shown the compound to be effective against paclitaxel-resistant tumors.

The trial design involves the intravenous administration of KOS-862 weekly for three of four weeks at a dose of 100mg/m2. The trial will enroll between 20 and 50 patients with hormone-refractory prostate cancer who have progressed after treatment with a Taxotere-based regimen. The changes in prostate specific antigen and tumor response will be assessed to determine clinical activity.