XTLbio Announces Purchase of 14% Stake by Israel Healthcare Ventures

Rehovot, Israel, 17 July 2003 - XTL Biopharmaceuticals Ltd. (XTLbio) confirms
today that it has been informed by Israel Healthcare Ventures (IHCV), a venture
capital fund committed to investing in Israeli-based companies in the life
sciences and medical technology field, that IHCV has acquired a 14%
shareholding in XTLbio.

IHCV was founded in March 2001 by UK and US private investors with
pharmaceutical and financial backgrounds - Isaac Kaye Family Trust, Harvey
Kruger, Steven Kaye and Warren Roiter. Since its launch, it has invested in a
number of innovative Israeli companies that have the potential for rapid market
penetration and profitability.

Hadar Ron, Managing Director of IHCV, said: "XTLbio exactly fits our strict
investment criteria. It is a company focused on innovative science in an area
of significant and increasing unmet medical need. We are enthusiastic about its
prospects."

Martin Becker, Chief Executive of XTLbio, added: "We are very pleased to have
the support from investors of the calibre of IHCV. Their commitment highlights
the promise of XTLbio and our work in finding drugs to overcome hepatitis."

Contacts:

XTLbio - Tel: +972-(0)8-930-4444

Martin Becker, Chief Executive Officer

Jonathan Burgin, Chief Financial Officer

Financial Dynamics - Tel: +44-(0)20-7831-3113

David Yates

NOTES

About XTLbio

XTL Biopharmaceuticals Ltd. (XTLbio) is a biopharmaceutical company developing
drugs against hepatitis. 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 Israel Healthcare Ventures

Israel Healthcare Ventures (IHCV), managed by Dr. Hadar Ron in Israel, provides
venture capital investment to Israeli and Israeli related companies in the
fields of medical devices, biotechnology, pharmaceuticals, and medical-related
IT. Headquartered in Tel Aviv, IHCV was founded in March 2001 by prominent US
and UK investors from the pharmaceutical and financial services worlds. It is
led by highly experienced medical analysts and advisors. IHCV takes a hands-on
approach, providing portfolio companies with clinical advice, management
consulting and an extensive network of contacts throughout the global medical
and financial fields. They take a close look at the underlying science, the
particular characteristics of the target market, and the quality of the
management. Their ideal investment opportunity is a company with truly
innovative technology that provides a solution to an existing need, and that
has excellent potential for rapid market acceptance and profitability. The
company should be led by highly competent, experienced people who have the
flexibility to adapt to problems, challenges and opportunities as they arise.



END