Allon's Compound Shows Effect on Both Classic Hallmarks of Alzheimer's

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 12, 2006) - Allon Therapeutics Inc. (TSX:NPC), The Neuro Protection Company^TM, announced today that the Company's proprietary compound NAP has been shown in preclinical studies to be effective in reducing both amyloid plaques and neurofibrillary tangles in the brain, two pathologies most closely correlated with Alzheimer's disease in humans.

"Plaques and tangles are hallmark pathologies found in Alzheimer's patients and there is a consensus among physicians that if they can be prevented before they develop or reduced after diagnosis it would be a significant victory in the war against this disease," said Professor Illana Gozes, Chief Scientific Officer of Allon. Professor Gozes has been invited to present the NAP studies at the 10th International Conference on Alzheimer's disease and related disorders (ICAD) being held in Madrid, Spain July 15-20.

Studies examining amyloid plaques and neurofibrillary tangles were conducted at Georgetown University Medical Center in Washington, D.C. with triple transgenic mice specially bred to have brains with extracellular amyloid plaques and neurofibrillary tangles. These mice are generally considered to be the most realistic model of Alzheimer's disease. These studies will also be presented at ICAD in a poster by the Georgetown team.

"We have shown in these new studies that NAP administered intranasally entered the brain at therapeutic levels and reduced both extracellular amyloid load and neurofibrillary tangles," said Gozes. "These results are a significant addition to our earlier studies showing the potential efficacy of our products derived from NAP in the treatment of early-stage Alzheimer's disease."

No drug on the market today has any impact on these plaques and tangles. Drugs on the market today treat only the symptoms of Alzheimer's - that is, they slow memory loss or modify emotional volatility or treat other behavioural symptoms.

Dr. Gozes' presentation at ICAD, which will be held on July 19th, will also focus on results from other new preclinical studies conducted at Tel Aviv University showing that NAP can enhance cognitive function in mice expressing mutated (pathological) Tau. Tau is the building block of neurofibrillary tangles. The new preclinical studies suggest that NAP prevents neurofibrillary tangle formation and provides neuroprotection.

Allon has two drugs derived from NAP that are currently being evaluated in human clinical trials. AL-108 is in Phase I clinical trials for the treatment of Alzheimer's disease and AL-208 in a Phase II clinical trial as a treatment for the mild cognitive impairment that occurs following coronary artery bypass graft (MCI post-CABG) surgery.

Allon's two technology platforms have shown efficacy in 14 different pre-clinical models of eight central nervous system diseases, disorders or injuries. This broad neuroprotective activity demonstrates the potential of Allon's proprietary compounds to protect brain cells against multiple degenerative diseases and injuries.

About ICAD 2006

At ICAD 2006, more than 5,000 researchers will share groundbreaking information and resources on the etiology, pathology and treatment of Alzheimer's disease and related disorders. The program will include 135 invited speakers, who are respected leaders in their disciplines. ICAD is sponsored by The Alzheimer's Association, the world leader in Alzheimer's research and support.

About Allon

Allon Therapeutics Inc. is a Canadian biotechnology company developing drugs that protect against neurodegenerative conditions such as Alzheimer's disease, mild cognitive impairment, stroke, traumatic brain injury, multiple sclerosis and neuropathy. The Company is listed on the Toronto Stock Exchange under the trading symbol "NPC" (Neuro Protection Company) and based in Vancouver.

Forward-Looking Statements

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