HANA BIOSCIENCES REPORTS 2ND QTR 2005 NET LOSS OF $president MIL.

Hana Biosciences (OTCBB: HNAB), a South San Francisco based biopharmaceutical company that acquires, develops, and commercializes innovative products to advance cancer care, reported a net loss of $2.1 million, or $0.13 per share for the quarter ended June 30, 2005 compared to a net loss of $1.2 million, or $0.14 per share, in the year-ago period. The company ended the second quarter 2005 with $6.8 million in cash and cash equivalents, compared to $6.6 million at the end of 2004. Increased investment in research and development, driven by the accelerated clinical development of its three product candidates, resulted in the additional use of funds.

"Our business model is built to increase the pace and intensity of drug development and we are pleased with our research and clinical progress to date," said Mark Ahn, PhD, president and CEO of Hana Biosciences. "In our first 18 months, we have acquired 3 pre-clinical oncology drugs and moved two clinical candidates into clinical trials, with a third to begin shortly."

Key Achievements in the First Half of 2005 and Outlook for Second Half

Hana has achieved several important milestones in the development of its product portfolio, during the first half of 2005 including:

-- Ondansetron Lingual Spray (OLS) demonstrated a bioequivalence profile comparable to oral Zofran(R) in a pilot pharmacokinetic clinical trial, with multidose convenience and faster drug delivery versus tablets. OLS remains on schedule to initiate pivotal clinical trials in 2005 with a targeted 505(b)(2) NDA (new drug approval) application submission in 2006.

-- Talotrexin (PT-523) commenced a multinational, multicenter phase I/II clinical trial in nonsmall cell lung cancer (NSCLC).

-- Talotrexin phase I/II clinical trial in acute lymphocytic leukemia (ALL) was initiated a multicenter clinical trial led by M.D. Anderson Cancer Center.

-- IPdR pre-clinical research was presented at the American Association of Cancer Research demonstrating in vivo dose responsive efficacy, as well as synergy when combined with radiotherapy, in a primary brain tumor study.

"The advancement of our clinical studies firmly establishes our forward momentum to meet and achieve our next level of development and commercialization goals," continued Ahn. "Our goals for the remainder of 2005 include presenting interim results on the first wave of Talotrexin clinical trials; initiating a phase I IPdR clinical trial in colorectal, gastric, pancreatic and liver cancers; and commencing pivotal clinical trials in OLS (ondansetron lingual spray) for a 505(b)(2) NDA filing in 2006."

About Hana Biosciences

Hana Biosciences, Inc. (OTCBB: HNAB) is a South San Francisco, CA-based biopharmaceutical company that acquires, develops, and commercializes innovative products to advance cancer care. The company is committed to creating value by building a world-class team, accelerating the development of lead product candidates, expanding its pipeline by being the alliance partner of choice, and nurturing a unique company culture.

For more information, visit http://www.hanabiosciences.com or call 650/588-6464