HepaLife Technologies Launches Alliqua BioMedical to Capitalize on New Market Opportunities

New Subsidiary to Focus on Development, Manufacturing and Marketing of Proprietary Transdermal Drug Delivery Products in High-Growth Sectors

NEW YORK, New York - November 1, 2010 - HepaLife Technologies, Inc. (OTCBB: HPLF) (FWB: HL1) ("HepaLife"), an advanced biomedical products company focused on the development and manufacturing of proprietary drug delivery and liver health technologies, today announces the formation of a new wholly owned subsidiary, Alliqua BioMedical, Inc. ("Alliqua").

Alliqua intends to develop, manufacture and market its own proprietary products, utilizing HepaLife's existing technology portfolio. It further intends to pursue projects in the fields of active ingredient and transdermal drug delivery, as well as advanced wound care.

In connection with the formation of Alliqua, HepaLife appointed Matt Harriton as Alliqua's CEO. Mr. Harriton brings over 23 years of experience across a range of industries and applicable fields, including SEC compliance, FDA compliance and intellectual property rights.

"The launch of Alliqua marks a significant milestone for HepaLife and its shareholders," said Matt Harriton, CEO of Alliqua. "Leveraging HepaLife's proprietary technology and proven expertise, Alliqua represents the expansion of HepaLife's business into the mutli-billion dollar drug delivery and advanced wound care markets."

In conjunction with the formation of Alliqua, HepaLife reiterates its major milestones over the past year:

Through the acquisition of AquaMed Technologies, Inc. and its hydrogel technology platform in May 2010, HepaLife has expanded its business focus to include the multi-billion dollar fields of transdermal drug and actives delivery, with added applications in wound care, medical diagnostics, consumer health and cosmetics.
HepaLife's private placement in May 2010 has helped secure its financial position and provides it with a greater ability to execute its strategic initiatives.
"We are pleased to announce the formation of Alliqua, as we believe it will drive HepaLife's existing and developmental product pipeline going forward," said Richard Rosenblum, President of HepaLife. "As we proactively penetrate the expanding drug delivery and wound care industries, we remain highly committed to growing our revenue, earnings and, ultimately, shareholder value."

About HepaLife Technologies, Inc.

HepaLife Technologies, Inc. (OTCBB: HPLF) (FWB: HL1), is an advanced biomedical products company focused on the development and manufacturing of proprietary technologies in the fields of drug delivery, advanced wound care and liver health preservation. Through its recently formed subsidiary, Alliqua BioMedical, Inc., HepaLife intends to develop active ingredient and transdermal drug delivery products, primarily utilizing the proprietary hydrogel technology platform manufactured by HepaLife's AquaMed Technologies, Inc. subsidiary.

AquaMed Technologies, Inc. ("AquaMed"), another wholly-owned subsidiary of HepaLife, manufactures custom hydrogels used for transdermal drug delivery, wound care, medical diagnostics, and cosmetics. These products use proprietary manufacturing technologies which enable AquaMed to produce what is known in the healthcare industry as high water content, electron beam cross-linked aqueous polymer sheet hydrogels.

HepaLife Technologies, Inc. is also the developer of HepaMateTM, an extracorporeal cell-based bioartificial liver system designed to combine blood detoxification with liver cell therapy to provide whole liver function in patients with the most severe forms of liver failure. HepaMateTM is comprised of a blood plasma separation cartridge, a hollow-fiber bioreactor filled with proprietary porcine liver cells, a charcoal column, an oxygenator, circuit tubing and a plasma reservoir. These components are assembled into a patented blood/plasma circulation system, which is placed on the HepaDriveTM perfusion platform.

Any statements contained in this press release regarding our ongoing research and development and the results attained by us to-date have not been evaluated by the Food and Drug Administration.