Islet Sciences acquires DTI

Islet Sciences, Inc. (OTC.BB: ISLT), a biotechnology company engaged in the research, development and commercialization of patented technologies in the field of transplantation therapy for patients with diabetes, today announced the closing of the acquisition of DiaKine Therapeutics, Inc. ("DTI"), a biopharmaceutical company developing new, proprietary drugs for unmet medical needs in diabetes and complications related to diabetes which is now the Company's wholly owned subsidiary.

John Steel, Chairman and CEO of Islet Sciences stated, "We are pleased to announce the closing of this acquisition and look forward to executing on the combined company's synergistic market opportunity in the diabetes space. Our approach to the treatment of diabetes in addition to other inflammatory diseases and autoimmune disorders represents a very large market. DiaKine's drugs may benefit people with type 1 and type 2 diabetes that has a total addressable market of approximately $13 billion. We believe the DiaKine acquisition positions the Company to capitalize on the growing opportunities in this field."

As previously reported in the Current Report on Form 8-K filed by Islet Sciences, Inc. with the SEC on February 29, 2012, on February 23, 2012, the Company entered into a Share Exchange Agreement with DTI, and shareholders of DTI, whereby the Company agreed to issue to the DTI shareholders an aggregate of 200,000 shares of its newly designated shares of Series C preferred stock, in exchange for all issued and outstanding shares of DTI. Each share of preferred stock is convertible into ten shares of the Company's common stock. The Company also agreed to issue to DTI 100,000 shares of its common stock in satisfaction of DTI's liabilities outstanding at the closing under the agreement.