Prana Biotechnology Presents New Key Findings on PBT2 PBT2 Alters Biomarkers and Rapidly Improves Cognition in two distinct models of Alzheimer's Disease

Biotechnology Presents New Key Findings on PBT2

Alters Biomarkers and Rapidly Improves Cognition in two distinct models of

Australia - June 6, 2007 - Prana Biotechnology Limited (NASDAQ: PRAN / ASX:

biopharmaceutical company focused on the research and development of treatments

for neurodegenerative disorders, announced today that it will present new data

on Prana's lead Alzheimer's disease (AD) drug PBT2 at the Alzheimer's

Association International Conference on Prevention of Dementia, in Washington

Colin Masters MD, Executive Director and Laureate Professor Mental Health

Research Institute and The National Neuroscience Facility University of

Melbourne and Director of the Company will present the findings on June 9,

lecture entitled "Alzheimer's Disease: Abeta amyloid as the principal molecular

therapeutic and diagnostic target." The presentation will include data from

manuscripts currently under preparation for publication by scientists from

Prana, The Mental Health Research Institute and The University of Melbourne.

PBT2 is currently in Phase IIa development, the presentation will detail the

results of the expansive mouse cognitive and biomarker studies recently

completed on PBT2, including several key findings such as:

amyloid plaques which are the main pathological feature of the brains of

Alzheimer's sufferers are composed of aggregates of the Abeta protein. The

Alzheimer's research community largely supports the hypothesis that small,

soluble, mobile aggregates (oligomers)

Abeta protein are the cause of neurotoxicity in AD. PBT2's ability to inhibit

the generation and toxicity of these oligomers, as well as preventing the

hyperphosphorylation of tau, while improving cognition, supports the disease

modifying potential of PBT2 and other drugs in the Prana development pipeline.

Kempler, Chairman and Chief Executive Officer of Prana commented: "The results

of these studies are encouraging and lend further support to the theories

driving development of PBT2. We continue to improve our understanding of PBT2's

functionality and potential for disease modification as we move forward with

formal clinical development. The ongoing PBT2 Phase IIa trial in early

Alzheimer's patients is on track to complete dosing by the end of this year and

report early in 2008."

microdialysis recently adopted as a research tool by Prana scientists provides

unique insight into a dynamic metabolic process, allowing researchers to sample

secretions from the brains of conscious, unrestrained test animals freely

interacting with their environment. Sampling from the brains of

genetically-engineered AD mouse models which have received single or sequential

oral doses of PBT2, it was found that the drug exerts its inhibitory effects

upon the target molecule, Abeta, rapidly and reproducibly without causing

"rebound" effects observed with other drugs in development. Most particularly,

dramatic reduction was observed in soluble oligomers of the size range

identified in the literature as the most toxic form of Abeta amyloid in AD.

findings of these studies confirm and expand upon data presented by the Company

at the International Conference of Alzheimer's Disease in Madrid last July,

describing potent effects of PBT2 on memory acquisition and retention in

Prana Biotechnology Limited

Biotechnology was established to commercialise 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

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 of Harvard Medical School, contributed to the discovery of

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

Form 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