HepaLife™ Acquires Liver Support Technology, Tested in America's Largest-Ever Human Clinical Trial for Bioartificial Liver Assist Devices

HepaLife bolsters development and strengthens its IP portfolio through acquisition of bioartificial liver technology: clinically evaluated in over 170 human patients, with 12 additional patents and licenses, and FDA's 'orphan drug' and 'fast-track' designation.

Boston, MA – October 7, 2008 – HepaLife Technologies, Inc. (OTCBB: HPLF) (FWB: HL1) (WKN: 500625) developers of the first-of-its-kind bioartificial liver device intended for the treatment of human liver failure, announced that the Company has acquired a liver support technology formerly known as “HepatAssist”, along with numerous related patents, licenses, clinical protocols, and important fast-track and orphan drug designations by the United States Food and Drug Administration (FDA).

“The complexion of our Company has changed dramatically as a result of this acquisition, and the prospects for substantially cutting our time-to-market for a commercial bioartificial liver device have become very real,” stated Mr. Frank Menzler, President, CEO and Chairman of HepaLife Technologies, Inc. “This move significantly improves our market position, and marks a very important milestone in the research and development of our bioartificial liver.”

In ongoing efforts to enhance and strengthen its patented PICM-19 porcine liver cell line-supported bioartificial liver technology, HepaLife has purchased certain assets of Waltham, MA-based Arbios Systems, Inc., relating to the company’s pig cell-reliant liver device technology, HepatAssist. HepatAssist was evaluated in the largest-ever Phase II/III clinical study (prospective randomized trial involving over 170 patients) to test safety and efficacy of a bioartificial liver assist device, with the resultant clinical data published in 2004.

Among the assets acquired by HepaLife, included are: over 12 patents and patent licenses; miscellaneous equipment; FDA Investigative New Drug Application, including important orphan drug and fast track designation; Phase I and Phase II/III clinical protocols; clinical data from human patient trials; and standard operating procedures for manufacturing and quality control.

The purchase price of the acquired assets consisted of cash and warrants to purchase shares of the Company’s common stock.

As a result of the successful acquisition of the HepatAssist technology, HepaLife also announced today plans to deploy an enhanced product development program, and immediate re-organization of the Company’s bioartificial liver device development activities. The Company has notified the U.S. Department of Agriculture, Agricultural Research Service (USDA, ARS) that it has elected to terminate the Cooperative Research and Development Agreement (the “CRADA”) between the Company and the USDA, ARS effective November 30, 2008.

The exclusive license agreement for the PICM-19 liver cell line with the USDA, ARS for the use of patented liver cell lines in artificial liver devices and in-vitro toxicological testing platforms remains in force and effect. Last month, HepaLife announced expansion of this license, allowing for the additional use of PICM-19 cells as an in-vitro infection host system for viral and protozoan agents such as malaria.

Please see press release from October 1, 2008.
(http://www.hepalife.com/press_releases/20081001.html.php).

The Company also announced the appointment of Mr. Frank J. Fabio as HepaLife’s Chief Financial Officer. Mr. Fabio received a BBA in Accounting from Pace University in June 1973, and has been a Certified Public Accountant since 1976. Mr. Fabio earned his MS in Taxation from Long Island University in June 1989, and was employed by Ernst & Ernst from 1973 to 1980. Since 1980, Mr. Fabio has maintained a private accountancy practice in New York.

ABOUT HEPALIFE TECHNOLOGIES, INC.

Based in Boston, Massachusetts, HepaLife Technologies, Inc. (OTCBB: HPLF - News) (FWB: HL1) (WKN: 500625) is a developer of cell-based medical technologies addressing prevalent human health concerns.

Any 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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