Grannus BioSciences Limited Announces Appointment of EGeen as CRO

December 12, 2005 —- Grannus BioSciences Ltd (GBL), a bio-pharmaceutical company developing novel products to control inflammatory and hyperproliferative disorders, announced today the appointment of EGeen AS, a subsidiary of EGeen International, as CRO for the Company’s clinical development activities. Under the terms of the agreement, Grannus will utilize EGeen for the clinical testing of its lead biologic and small molecule therapeutics in Phase I and II human clinical trials respectively against a number of dermatologic diseases and conditions.

Dr. Elizabeth McLaughlin Taylor, Grannus’ Chief Operating Office, stated: “We are pleased to be moving into clinical testing of the Company’s products in diseases such as psoriasis, contact dermatitis and actinic keratosis where there is considerable unmet clinical need. We are equally excited to be able to initiate our clinical development with such a capable partner as EGeen. We expect that the clinical studies starting in 2006 will generate data critical to the development of Grannus’ innovative pipeline and its growth as a pharmaceutical company.

About Grannus:

Grannus BioSciences Limited is discovering and developing breakthrough bio-pharmaceuticals to combat inflammation and other selected disorders. GBL’s efforts are focused on biologic and small molecule drugs that regulate the inflammatory or hyperproliferative processes in the dermis, respiratory or gastrointestinal tract. The company has several lead clinical stage products in development. The first is thymosin beta 4 sulfoxide, a potent inhibitor of neutrophils, that is being formulated as a Phase I molecule for dermatologic and respiratory applications. The second is a phase II small molecule drug with application to actinic keratosis and certain other disorders. Grannus has a pipeline of preclinical molecules that are also being developed for additional anti-inflammatory applications.

Grannus is seeking strategic alliances and partnerships that will support the global commercialization of its products. The Company plans to out-license rights to its product indications at Phase I or II to partners in the major territories (North America, Europe, or Japan), while retaining rights in the rest of the world. Grannus also is looking to in-license additional products for development.

About EGeen:

EGeen International Corporation’s key business focus is to advance drug development via expeditious and cost-effective clinical trials by taking advantage of its proprietary clinical database, cost-effective infrastructure and extensive networks of hospitals and highly qualified medical doctors. As a Contract Research Organization (CRO), EGeen conducts expeditious and cost effective clinical trials under FDA and EMEA INDs in the Baltic States and Ukraine. In addition to the fee-for-service arrangements, EGeen is also engaged in joint drug development arrangements where it conducts Phase I and II clinical trials with a reduced or no upfront resource requirement from the partners in exchange for downstream participation in drug sales.