XTLbio BOARD TAKES ACTION FOLLOWING AGM

Rehovot, Israel, 25 June 2003 - XTL Biopharmaceuticals Ltd. (XTLbio) announced
today actions following the Annual General Meeting (AGM) held on 19 June 2003:

  * A programme, which will focus the Company's efforts on its late stage
    products and extend cash resources until the first quarter of 2006, will be
    presented at the July Board of Directors meeting and actions to implement
    this programme will be taken by the Board thereafter.
   
  * The Chairman and the Executive Directors have advised the Company that they
    have voluntarily decided to take a 10% reduction in salaries for a period
    of one year.
   
In addition to the above, a grant of options to Executive Directors was
voluntarily withdrawn as a resolution at the Annual General Meeting.

Dr. Geoffrey Vernon, Chairman of the Board of XTLbio, commented, "As promised,
both management and the Board have taken a number of decisive actions to
respond to concerns raised by our shareholders. Our clear objective is the
realisation of maximum shareholder value through the most productive
utilisation of the Company's cash resources. I am confident that the actions
taken today will achieve this."

About XTLbio

XTL Biopharmaceuticals Ltd. (XTLbio) is the drug development company committed
to conquering hepatitis C in our time. XTLbio's HepeX(tm) product line - now in
clinical trials - has the potential to introduce revolutionary therapies for
viral hepatitis, including prevention of re-infection in transplanted livers,
the Company's primary focus, and a longer-term cocktail approach in treating
chronic illness. XTLbio believes its primary competitive advantage lies in its
patented Trimera(tm) technology, which enables the development of fully human
monoclonal antibodies and models of human disease for pre-clinical drug
validation. Established in 1993, XTLbio became a public company in 2000 with
shares traded on the London Stock Exchange under the symbol XTL.

About hepatitis C

Hepatitis C is a major public health concern. The World Health Organization
estimates that 170 million people worldwide are chronic carriers of the
hepatitis C virus (HCV) and that 3 to 4 million people are newly infected each
year. It is expected that 25 to 35% of these chronic patients will develop
progressive liver disease including cirrhosis and liver cancer. Hepatitis C is
the single leading cause of liver transplantation. The US Centers for Disease
Control and Prevention estimate that approximately 4 million people in the
United States (almost 2% of the population) have been infected with HCV, of
whom, approximately 3 million are chronically ill. Hepatitis C is the cause of
an estimated 8,000 to 10,000 deaths annually in the US.

About HCV-related liver transplant prophylaxis

Approximately 5% of chronic HCV patients will develop end-stage liver disease,
and ultimately may require liver transplantation. Today, there is a major
problem associated with HCV-related liver transplantation. Although the
infected liver - the major source of viral replication - has been removed,
free-floating virus in the patient's serum re-infects the healthy transplanted
liver in a matter of weeks. Disease progression in re-infected patients is
several times faster and, in many cases, a re-transplant becomes necessary. At
present, there is no available solution to this problem. The Company estimates
worldwide annual sales potential for HCV liver transplant prophylaxis at US$400
million.

About the treatment of chronic hepatitis C

The existing first-line chronic HCV therapy is often associated with a 50-60%
chance of success but is limited by severe side effects, including anaemia,
fatigue, hair loss and depression. Due to the relatively limited efficacy and
toxicity of this treatment, chronic HCV is still considered an unmet medical
need. Financial analysts estimate that worldwide annual sales for all products
treating chronic hepatitis C could reach US$4 billion in 2004.

HepeX(tm), Trimera(tm), XTL(tm) and XTLbio(tm) are trademarks of XTL Biopharmaceuticals
Ltd.

Contacts:

XTLbio

Dr. Martin Becker, President and CEO, Tel: +972-8-930-4440

Financial Dynamics

David Yates, Sarah MacLeod, Tel: +44 (0) 20 7831 3113



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