Independent German Based Equity Research Firm Maintains Buy Rating, Speculative Risk Rating and Projected Share Price Target of $2.00 NEW YORK, Jan. 5 /PRNewswire-FirstCall/ -- Callisto Pharmaceuticals, Inc. (Amex: KAL; FWB: CA4), a developer of new drug treatments in the fight against cancer and other major health threats, announced today that a leading independent research firm, First Berlin Equity Research, has issued an updated research report with a "Buy" rating, speculative risk rating and calling for a share price target of $2.00. First Berlin issued the research update following Callisto's announcement on December 27, 2006 of the completion of a successful Series A private placement of preferred stock and warrants that raised an overall total of $5.75 million between October and December 2006. First Berlin is a leading European research firm. Its coverage of Callisto is fully independent. About First Berlin Established in 1998, First Berlin is an independent equity research company. First Berlin combines decades of experience in the markets of London, New York and Frankfurt, enabling it to offer its clients a standard of service that until now has only been available to larger firms. For more information, visit http://www.firstberlin.com/. About Callisto Pharmaceuticals, Inc. Callisto is a biopharmaceutical company focused on the development of new drugs to treat various forms of cancer and other serious afflictions. Callisto's drug candidates in development currently include anti-cancer agents in clinical development, in addition to drugs in pre-clinical development for other significant health care markets, including ulcerative colitis. One of the Company's lead drug candidates, Atiprimod, is in development to treat advanced carcinoid cancer, a neuroendocrine tumor, and relapsed multiple myeloma, a blood cancer. Atiprimod is presently in a Phase II clinical trial in advanced carcinoid cancer patients, and in Phase I/IIa human clinical trials in relapsed or refractory multiple myeloma patients, and advanced cancer patients, respectively. Another anti-cancer drug, L-Annamycin, is being developed as a treatment for forms of relapsed or refractory acute leukemia, a currently incurable blood cancer. Callisto initiated a clinical trial of L- Annamycin in adult relapsed or refractory acute lymphocytic leukemia patients in 4Q 2005. L-Annamycin, a new compound from the anthracycline family of proven anti-cancer drugs, has a novel therapeutic profile, including activity against resistant diseases and significantly reduced cardiotoxicity, or damage to the heart, compared to currently available drug alternatives. Callisto also has drugs in preclinical development for gastro-intestinal inflammation, and cancer. Callisto has exclusive worldwide licenses from AnorMED Inc. and M.D. Anderson Cancer Center to develop, manufacture, use and sell Atiprimod and L-Annamycin, respectively. Callisto is also listed on the Frankfurt Stock Exchange under the ticker symbol CA4. More information is available at http://www.callistopharma.com/. Forward-Looking Statements Certain statements made in this press release are forward-looking. Such statements are indicated by words such as "expect," "should," "anticipate" and similar words indicating uncertainty in facts and figures. Although Callisto believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to be correct. As discussed in the Callisto Pharmaceuticals Annual Report on Form 10-K/A for the year ended December 31, 2005, and other periodic reports, as filed with the Securities and Exchange Commission, actual results could differ materially from those projected in the forward-looking statements as a result of the following factors, among others: uncertainties associated with product development, the risk that products that appeared promising in early clinical trials do not demonstrate efficacy in larger-scale clinical trials, the risk that Callisto will not obtain approval to market its products, the risks associated with dependence upon key personnel and the need for additional financing. DATASOURCE: Callisto Pharmaceuticals, Inc. CONTACT: Dan D'Agostino of Callisto Pharmaceuticals, Inc., +1-212-297-0010, ext. 227, Web site: http://www.callistopharma.com/ http://www.firstberlin.com/

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