Dosing Commenced in Phase IIa PBT2 Trial of Alzheimer's Patients - Screening of Patients Under Way and Proceeding as Expected

Commenced in Phase IIa PBT2 Trial of Alzheimer's Patients

of Patients Under Way and Proceeding as Expected -

Australia - December 19, 2006 - Prana Biotechnology Limited (NASDAQ: PRAN /

announced that dosing has commenced in its Phase IIa clinical trial of PBT2

patients with early Alzheimer's disease.

PBT2-201-Euro trial is being conducted in seven centers throughout Sweden and

will focus on exploring the safety and tolerability of PBT2, Prana's proprietary

lead compound, and its effects on the mechanism and progression of the disease,

investigating both central and peripheral biomarkers of Alzheimer's disease as

Principal Investigator for the trial is Professor Lars

department of Public Health/Geriatrics at Uppsala University. Professor Lannfelt

and his laboratory have identified two important human mutations of Alzheimer's

disease (the Swedish and Arctic mutations) that affect the level of amyloid

peptide in the brain, a key discovery in the Alzheimer's field.

years, Sweden has been at the forefront of biomarker research and we now

understand that measurement of central biomarkers provides an important

understanding of the progression of Alzheimer's disease. Our expertise in the

collection, analysis and understanding of biomarkers has meant that many leading

Alzheimer's disease drug development companies, such as Prana, locate their

important clinical biomarker studies here. If this drug can be shown to move

of these biomarkers, it will demonstrate the drug's potential as a mechanistic

treatment for Alzheimer's disease," said Professor Lannfelt.

PBT2-201-Euro trial is a randomized, double blind, placebo-controlled Phase

study, in which 80 Alzheimer's disease patients - male and female subjects

years or older - will randomly receive three (3) months treatment with one

two oral dose levels of PBT2, or placebo. 20 patients will receive a 50mg dose;

30 patients will receive a 250mg dose; and 30 patients will receive the placebo.

The primary endpoint of the study will be the safety and tolerability of PBT2.

The efficacy endpoints will be PBT2's effect on cerebrospinal fluid (CSF) and

plasma biomarkers as well as cognition. Results are expected to be announced

the fourth quarter of 2007.

Prana Biotechnology Limited

Biotechnology was established to commercialize research into Alzheimer's disease

and other major age-related neurodegenerative disorders. The company was

incorporated in 1997 and listed on the Australian Stock Exchange in March 2000

and listed on NASDAQ in September 2002. Researchers at prominent international

institutions including the University of Melbourne, The Mental Health Research

Institute (Melbourne) and Massachusetts General Hospital, a teaching hospital

Harvard Medical School, discovered Prana's technology.

further information, please visit our web site at www.pranabio.com.

press release contains "forward-looking statements" within the meaning of

section 27A of the Securities Act of 1933 and section 21E of the Securities

Exchange Act of 1934. The Company has tried to identify such forward-looking

statements by use of such words as "expects," "intends," "hopes," "anticipates,"

"believes," "could," "may," "evidences" and "estimates," and other similar

expressions, but these words are not the exclusive means of identifying such

statements. Such statements include, but are not limited to any statements

relating to the Company's drug development program, including, but not limited

to the initiation, progress and outcomes of clinical trials of the Company's

drug development program, including, but not limited to, PBT2, and any other

statements that are not historical facts. Such statements involve risks and

uncertainties, including, but not limited to, those risks and uncertainties

relating to the difficulties or delays in financing, development, testing,

regulatory approval, production and marketing of the Company's drug components,

including, but not limited to, PBT2, the ability of the Company to procure

additional future sources of financing, unexpected adverse side effects or

inadequate therapeutic efficacy of the Company's drug compounds, including,

not limited to, PBT2, that could slow or prevent products coming to market,

uncertainty of patent protection for the Company's intellectual property or

trade secrets, including, but not limited to, the intellectual property relating

to PBT2, and other risks detailed from time to time in the filings the Company

makes with Securities and Exchange Commission including its annual reports

From 20-F and its reports on Form 6-K. Such statements are based on management's

current expectations, but actual results may differ materially due to various

factions including those risks and uncertainties mentioned or referred to in

this press release. Accordingly, you should not rely on those forward-looking

statements as a prediction of actual future results.

to the requirements of the Securities Exchange Act of 1934, the registrant

duly caused this report to be signed on its behalf by the undersigned, thereunto

BIOTECHNOLOGY LIMITED