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XTL Biopharm Ltd (XTL)

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Wednesday 18 July, 2001

XTL Biopharm Ltd

Re Agreement

XTL Biopharmaceuticals Limited
18 July 2001

For Immediate Release

                         XTL and Dong-Wha Collaborate

             to Evaluate Small Molecule Compounds for Hepatitis C

Rehovot, Israel and Seoul, Korea, July 18, 2001 -- XTL Biopharmaceuticals Ltd.
(LSE: XTL) and Dong-Wha Pharmaceutical Industrial Company Limited today
announced that they have signed a collaborative agreement to evaluate novel
small molecule compounds for the treatment of hepatitis C.

Under the terms of the agreement, Dong-Wha will provide XTL with access to its
library of small molecule drug candidates which have already been screened for
efficacy using in vitro models of hepatitis C.  XTL will further evaluate the
efficacy of these candidates using its proprietary human tissue-based in vivo
disease model.  Dong-Wha will retain development and marketing rights to any
resulting products in Korea and XTL has the option to acquire an exclusive
development and commercialisation licence for the rest of the world.

Dong-Wha is a leading Korean pharmaceutical company.  The Company manufactures
over 400 medical products and exports to over 40 countries worldwide. It has a
central research and development capability which includes programmes in
infectious disease.

Kyu Oun Hwang, Chief Executive Officer of Dong-Wha, said:

'Dong-Wha is committed to the provision of innovative new medicines and has
identified hepatitis as a key area for new drug development.  In this
agreement, we aim to biologically validate the effectiveness of our small
molecule compounds before embarking on human clinical studies.'

Dr Martin Becker, Chief Executive Officer of XTL, said:

'XTL's ongoing strategy is to exploit our unique TrimeraXTL technology by
pursuing multiple development opportunities in infectious disease, namely
hepatitis B and C.  This small molecule evaluation agreement with Dong-Wha
gives us direct ownership of product candidates and complements well our
programmes with human monoclonal antibodies.'



XTL Biopharmaceuticals Ltd
Dr Martin Becker, Chief Executive Officer
Jonathan Burgin, Chief Financial Officer          Tel:  +972 (0) 894 05134

XTL Biopharmaceuticals, Inc. (USA)
Glenn Kazo, General Manager & Chief Business Officer   Tel:  +1 603-878-9857

Financial Dynamics

Jonathan Birt / Sarah Mehanna              Tel:  +44 (0) 20 7831 3113

Dong Wha Pharmaceutical Ind. Co., Ltd

Myung Sik Choi, Vice President, Licensing
and Business Development                             Tel:  +82 2 778 4331

Dong Wha Pharmaceutical Ind. Co,. Ltd

Dr. Jei Man Ryu, Research Laboratories              Tel: +82 31 445 2485

Notes to editors

Hepatitis C

Hepatitis C is a a major cause of chronic hepatitis in the United States and a
leading cause of liver transplantation. An estimated four million individuals
are infected with hepatitis C in the United States and the World Health
Organization estimates that 170 million people are infected worldwide.
Approximately 85% of hepatitis C infected persons will develop chronic
hepatitis, of which 20% will progress to liver cirrhosis. The number of deaths
attributable to hepatitis C is expected to triple in the next 10 to 20 years.

Dong Wha

Dong Wha is one of the leading pharmaceutical companies in Korea,
manufacturing and exporting more than 400 different medical products and 30
kinds of raw materials to over 40 countries around the world. Our R&D
activities are focused in developing new drugs, such as antibacterials,
antivirals, anticancers and bone disease, and developing novel drug delivery
systems. Especially in the field of antivirals, we are focusing in developing
non-nucleoside small molecular compounds for therapeutic agents of HBV or HCV.
  For more information about Dong Wha, visit the Company's web site at http://


XTL Biopharmaceuticals develops novel therapeutics to treat life-threatening
infectious diseases using fully human monoclonal antibodies and small molecule
drugs.  XTL's competitive advantage lies in its ability to leverage both its
proprietary human tissue-based in vivo disease models and fully human
monoclonal antibodies to validate and develop promising drug candidates.  The
Company's growing pipeline of therapies, designed to combat chronic viral
infections, drug-resistant bacteria and serious systemic fungal infections,
comprises internally developed products as well as those being co-developed
with a number of biopharmaceutical partners.  For more information about XTL,
visit the Company's web site at


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