Transpharma-Medical To Announce Promising Results of Clinical Trials With its hPTH (1-34) -Transdermal Delivery Product For Osteoporosis Treatment

Lod, Israel (March 29th, 2006) – TransPharma-Medical Ltd., the Israeli-based specialty pharma company that develops pharmaceutical products based on its unique RF-MicroChannels™ transdermal drug delivery technology, announces promising results of first human clinical trials demonstrating transdermal delivery of human Parathyroid Hormone 1-34 fragment, (hPTH 1-34)for the treatment of osteoporosis.

The results of the study, presented at IIR's Drug Delivery Partnerships 2006 conference held in London, prove systemic delivery of therapeutic dosages of bioactive hPTH (1-34) with relative bioavailability in comparison to sub-cutaneous administration of over 50%. These results show the ability to deliver the required hPTH (1-34) dose via TransPharma’s pen size system incorporating a 1cm2 small patch.

The patch utilized in the study is TransPharma’s proprietary dry protein patch developed particularly for the ViaDerm system. Scientists at TransPharma have formulated hPTH (1-34) into a stable printed dry-form patch that allows for the hPTH (1-34) to deliver into the patients’ systemic circulation with a peak blood profile. Analysis of two biomarkers (ionized calcium and phosphorus) confirmed that the bioactivity of the delivered hormone was fully maintained.

The ViaDerm delivery system incorporates a device, which creates microscopic passageways through the outer layer of the skin allowing for therapeutic administration of a wide variety of drugs from a patch. This device designed to deliver the Teriparatide is a hand-held pen-size unit, which provides a painless, very low-cost, easy to use application.

According to Dr. Daphna Heffetz, CEO of TransPharma, "the results of this trial demonstrate TransPharma's ability to deliver transdermally a state of the art peptide-molecule for osteoporosis treatment, with our proven ViaDerm delivery system, thus improving patients quality of life."

Over the next five years, the osteoporosis population is expected to reach 52 million, with an anticipated market potential of $10.4 billion by 2011. The hPTH (1-34) which is the only anabolic (capable of bone building) osteoporosis drug-molecule is currently being administered by injection only and is expected to reach $3 billion sale in 2010. The osteoporosis market is underserved and is open for emerging products to provide better efficacy and more patient friendly administration routes. Thus, we are expecting TransPharma's breakthrough technology to be in high demand.

Dr Heffetz adds that the "the very high bioavailability of the drug together with a low cost system has great potential to lead to extremely high gross margins when the product reaches the market."

Currently, TransPharma plans to continue the development of hPTH (1-34) to late stage clinical trials, when they plan to strategically ally with a major pharmaceutical company who can bring this product to the market. Parallel to its own development pipeline, TransPharma plans to continuously develop products in collaboration with other companies similar to the collaboration agreement signed with Teva Pharmaceuticals in 2004.

About TransPharma

Established in 2000, TransPharma Medical Ltd. is a specialty pharma company focusing on the development and commercialization of pharmaceutical products utilizing RF- MicroChannel technology. TransPharma's technologies are aimed to increase the portfolio of drugs delivered via a patch. TransPharma has developed a unique and clinically proven transdermal drug delivery system, ViaDerm™. The system is based on TransPharma's RF-MicroChannels™ technology which creates microscopic passageways through the outer layer of the skin allowing for therapeutic administration of a wide variety of drugs from a patch. Currently, available systems are limited to delivery of small-size drug molecules. ViaDerm™ overcomes these limits, enabling delivery of a large variety of drugs including proteins in a pain-free, low-cost, user friendly manner. The system was successfully tested in human clinical studies, using both small molecules and large molecules. For more information, visit the company's website at www.transpharma-medical.com.

For more information please contact:

Judith Kornfeld

Vice President of Business Development

judithk@transpharma.co.il

Office: +972-8-9152201