XTLbio Announces Grant of hMAb Patent

    XTLbio Announces Grant of Human Monoclonal Antibody Patent

Patent Covers Antibodies Directed Against Hepatitis B Virus Surface Antigen

Rehovot, Israel 26 January 2004 - XTL Biopharmaceuticals Ltd. ("XTLbio") (LSE:
XTL) announces that it has been granted European Patent No. 912611 (the "611
patent") entitled, "Human Monoclonal Antibodies to the Hepatitis B Surface
Antigen". This patent covers human monoclonal antibodies ("MAbs") directed
against the hepatitis B virus ("HBV") surface antigen ("HbsAg"). In addition,
the patent covers pharmaceutical compositions for the treatment or prevention
of HBV infection containing the antibodies, as in XTLbio's HepeX-B product.
These antibodies can be given either as monotherapy or in combination with
additional anti-viral agents.

"The grant of the 611 patent solidifies our intellectual property position in
the development of human monoclonal antibody therapeutics directed against
hepatitis," stated Mirit Lotan, PhD, Senior Director of Patents and Technology
Assessment for XTLbio. "XTLbio's therapeutic pipeline for HBV has shown
beneficial effects in early clinical studies. The 611 patent complements three
existing patents which, taken together, provide a complete intellectual
property base for XTLbio's HepeX-B product in the US and Europe".

HepeX-B is undergoing Phase II clinical trials for the prevention of
re-infection in hepatitis B patients following liver transplantation. HepeX-B,
a combination of two high affinity fully human monoclonal antibodies, is
directed against two different epitopes of HbsAg and binds to all major HBV
subtypes. The antibody pair recognizes different areas of the virus as well as
a wide range of viral sero types. HepeX-B was selected using XTLbio's
pre-clinical Trimera(tm) model.



XTL CONTACTS

Dr. Martin Becker
President and CEO
[phone]
 
Financial Dynamics
David Yates, Sarah MacLeod
[phone]

Notes to Editors

XTL Biopharmaceuticals Ltd. (XTLbio) is a biopharmaceutical company developing
drugs against hepatitis. XTLbio's HepeX(tm) product line - now in clinical trials
- has the potential to introduce revolutionary therapies for viral hepatitis,
including prevention of re-infection in transplanted livers, the Company's
primary focus, and a longer-term cocktail approach in treating chronic illness.
XTLbio believes its primary competitive advantage lies in its patented Trimera(tm)
technology, which enables the development of fully human monoclonal antibodies
and models of human disease for pre-clinical drug validation. Established in
1993, XTLbio became a public company in 2000 with shares traded on the London
Stock Exchange under the symbol XTL.

About HBV-related liver transplant prophylaxis

Hepatitis B is the most common form of hepatitis and one of the world's leading
causes of death. About 5% of chronic hepatitis B patients will develop
end-stage liver disease, a condition, which necessitates liver transplantation.
During the liver transplantation procedure the diseased liver is removed and a
healthy liver from a donor is transplanted. Without proper treatment, the newly
transplanted liver can become re-infected by residual virus in the patient's
serum, leading to rapid disease progression and graft failure in many cases.
The current market for prevention of hepatitis B infection following liver
transplant is estimated to be worth $100 million.



END