Positive Results from Latest Experiments Released by HepaLife's Collaborating USDA Research Team.

USDA Bioengineer, Dr. Ayesha Mahmood, Presents Brand New 'Survival and Function' Data in Support of HepaLife's PICM-19H Liver Cells at National Biomedical Engineering Society Meeting.

Vancouver, BC - October 5, 2005 - HepaLife Technologies, Inc. (OTCBB: HPLF) (FWB: HL1), a development stage biotechnology company focused on the identification, development and eventual commercialization of technologies and products for liver toxicity detection and the treatment of various forms of liver dysfunction and disease, today announces that positive data from recent experiments on the Company's PICM-19H liver cell line was released at last week's national Biomedical Engineering Society Meeting (BMES) in Baltimore, Maryland.

HepaLife's collaborating USDA scientist, Dr. Ayesha Mahmood , presented favorable research findings from important experiments related to the culture maintenance, culture density, and hepatoctye function of the PICM-19H cell line. These cells are the most crucial component of the Company's artificial liver device, and are currently undergoing evaluation and testing through a cooperative research and development agreement (CRADA) with the USDA.

Recent research has worked towards the optimization of culture conditions for the Company's proprietary PICM-19H liver cell line in order to enable faster cell growth, higher final cell densities, and to achieve optimal function of key liver metabolic and detoxification enzyme systems. As explained in HepaLife's September 19, 2005 press release, successful research outcomes will result in the incorporation of PICM-19H cells in an artificial liver device for use by patients suffering from chronic and acute liver disease, as well as use in in-vitro toxicology and pre-clinical drug testing platforms.

A full copy of the Company's September 19, 2005 press release can be viewed here: ( http://hepalife.com/20050919-1.html.php )

Research Shows Prolonged Survival & Function of HepaLife's PICM-19H Liver Cells

While presenting her findings at America's biggest annual bioengineering meeting, Dr. Mahmood presented new data showing that PICM-19H cells were able to survive at room temperature for days and then recover their full hepatic function within 24 hours of being brought back to normal body temperature (37º C). Thus, Dr. Mahmood's research outcomes demonstrate that PICM-19H cell function is not compromised due to prolonged room temperature exposure or storage.

When exposed to room temperature for up to six days, the PICM-19H cells maintained enough metabolic activity to be able to remain fully functional in place in a bioreactor. At the end of various room temperature storage periods the cell cultures recovered their normal body temperature metabolic activity. Metabolic rates were measured by way of the WST-1 uptake method, which indicates cell energy production from mitochondrial activity.

Furthermore, PICM-19H cells exposed to room temperature for up to 6 days were able to successfully maintain the most vital liver functions of P450 activity, ammonia clearance, and urea production. In all cases, these liver cell functions of the PICM-19H cells remained equivalent to control PICM-19 cells that were maintained at body temperature at all times - an important finding which demonstrates that PICM-19H cells were able to perform liver functions even after exposure to room temperature for several days.

In addition, the initial high cell densities of the PICM-19H cell cultures were maintained throughout the six day room temperature period. Cell density is vital, since a higher cell density enables the most efficient function of a bioreactor, and it is the bioreactor which will comprise the key component of HepaLife's artificial liver device. The maintenance of the high cell density demonstrated that little or no cell death occurred despite the exposure to the abnormally low (hypothermic) temperature conditions.

In conclusion, the results show that PICM-19H cell function was not compromised due to prolonged RT exposure and storage.

"These findings positively support our long-held belief that our cells are able to survive, function, and multiply in environments where most other liver cells simply cannot", explained Mr. Harmel S. Rayat, President and CEO of HepaLife.

"Through this research, we now know that PICM-19H cells can be transported at ambient or room temperature without loss of function. This means that we're not burdened by frozen cell storage protocols or body temperature incubation requirements in the commercial application of these cells to an artificial liver device or in vitro toxicology/pharmacology assay platforms.

"Most importantly, researchers anticipate that once the artificial liver device is in place for medical use, maintenance of the device will not require special conditions. For example, our cells can sit in a clinical setting without 're-feeding' or related maintenance; a significant benefit to end users, who will be able to use the device without sophisticated cell biology support."

"These research findings mark an important cell engineering achievement for HepaLife", concluded Mr. Rayat. "I'm especially pleased that for the first time ever, we were able to present PICM-19H data to our peers in the scientific community through the BMES meeting."

The Biomedical Engineering Society is America 's lead society for the accreditation of biomedical and bioengineering programs.

About HepaLife Technologies, Inc.

HepaLife Technologies, Inc. (OTCBB:HPLF) is a development stage biotechnology company focused on the identification, development and eventual commercialization of technologies and products for liver toxicity detection and the treatment of various forms of liver dysfunction and disease.

Currently, HepaLife is concentrating its efforts on creating the first-of-its-kind artificial liver device and developing proprietary in-vitro toxicology and pre-clinical drug testing platforms.

Artificial Liver Device

Presently, through a Cooperative Research and Development Agreement, HepaLife Technologies is working towards optimizing the hepatic functionality of the patented PICM-19 cell line. The hepatic characteristics of the PICM-19 cell line have been demonstrated to have potential application in the production of an artificial liver device for use by human patients with liver failure.

With 25 million Americans suffering from liver disease, the need for an artificial liver device able to remove toxins and improve immediate and long-term survival results is more critical today than ever before. Limited treatment options, a low number of donor organs, the high price of transplants and follow up costs, a growing base of hepatitis, alcohol abuse, drug overdoses, and other factors that result in liver disease all clearly indicate a strong need for an artificial liver device.

In-Vitro Toxicology Testing

Hepatotoxicity, or liver damage caused by medications and other chemical compounds, is the single most common reason leading to drug withdrawal or refusal of drug approval by the Food and Drug Administration (FDA). In fact, about one third of all drugs fail pre-clinical or clinical trials due to the toxic nature of the compounds being tested, costing pharmaceutical companies around $2 billion annually on such toxicity-related drug failures.

With the cost to develop an FDA approved drug approaching $1 billion and taking 10 to 15 years, a 10% improvement in predicting failures before clinical trials could save $100 million in development costs per drug. Despite efforts to develop better methods, most of the tools used for toxicology and human safety testing are decades old.

The PICM-19 cells grown in vitro synthesize liver specific proteins such as albumin and transferrin, and display enhanced liver-specific functions such as ureagenesis and cytochrome P450 activity. As a result, HepaLife, using the patented PICM-19 cell line, plans to develop proprietary in vitro toxicological and pre-clinical drug testing platforms that will more accurately determine the potential toxicity and metabolism of new pharmacological compounds in the liver.

At present, the Company does not have commercial products intended to diagnose, treat, cure or prevent any disease. The statements contained in this press release regarding our ongoing research and development and the results attained by us to-date have not been evaluated by the Food and Drug Administration.

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