Bio-Path Holdings, Inc. Provides Operations Update and Overview of New Targeting Technology

Business Wire, June 23, 2009

Peter Nielsen, President and Chief Executive Officer of Bio-Path Holdings, Inc., commented, “The delay in starting our first Phase I clinical trial is frustrating but, after reviewing the situation, understandable. The technology that the Company licensed was based upon manufacturing techniques used in a research laboratory. When going to full clinical development, manufacturing techniques needed to be developed that would allow cGMP manufacturing of our drug products on a much larger scale. The good news is that this has been completed and we can most likely file for new intellectual property for our manufacturing processes.”

Cash Resources

Management has prepared a new budget plan for the upcoming period including the clinical trial. There is sufficient funding to continue operations and commence the clinical trial, including purchase of the clinical drug batch. However, the extended drug development effort, including multiple additional manufacturing test runs, has stretched the Company’s resources. As a result, the Company is in the process of raising additional capital, and recently, raised approximately $165,000. The Company has verbal commitments for $500,000 in funding over the next few months, including the amounts already raised. The Company’s strategy for raising the next round of capital has been to wait until there is patient data midway through the first clinical trial, which could potentially demonstrate that the drug delivery technology is performing as expected. Patient date from the clinical trial that demonstrates effectiveness of the delivery technology is expected to increase Bio-Path’s valuation, which should enable the Company to raise a significant amount of capital for the next stage of development without being excessively dilutive. The Company currently expects to be midway through the clinical trial by the end of the first quarter 2010, assuming the FDA releases the IND to commence the trail by October 2009 and that there are not significant delays enrolling patients in the trial. In order to further stretch funds in the short term, management has deferred approximately sixty percent (60%) of their cash salaries.

New Liposome Targeting Technology

Bio-Path is currently in the process of licensing new tumor targeting technology that represents next-generation development of its liposome delivery technology. The new technology being licensed will enhance the Company’s liposome delivery technology by adding vectors to the liposomes targeted to a receptor that is specifically over-expressed on a majority of solid and hematological tumors and on a reported 80% of metastatic epithelial tumors. The Company believes this tumor-targeting technology for antisense and siRNA delivery represents a highly promising strategy for treating primary and metastatic cancers.