

[COMPANY LOGO]                           ADVANCED BIOTHERAPY, INC.

                                                |    Administration
                                                |    --------------
                                                |    c/o KVG Partners
                                                |    141 West Jackson Blvd.
                                                |    Suite 2182
                                                |    Chicago, IL 60604
                                                |
                                                |    Telephone 312-427-1912
                                                |    Fax       312-427-5396
                                                |    www.advancedbiotherapy.com
                                                |


August 29, 2006

  Advanced Biotherapy Enters Into Share Purchase and Debt Restructure Agreement

                             "FOR IMMEDIATE RELEASE"

CHICAGO -- Advanced  Biotherapy,  Inc. (OTCBB: ADVB) announced today that it has
entered into an agreement to raise $6,500,000 through a sale of stock to Richard
P. Kiphart, a board member, and Christopher Capps and other related parties,  at
$.015 per share.  In addition,  Mr.  Kiphart and other debt holders will convert
their debt at $.015 per share resulting in Mr. Kiphart having  personal  control
over  approximately  80% of ADVB shares.  Immediately  following the infusion of
capital,  payables  will  be  retired  by  both  the  use of cash as well as the
conversion  of some  portion to stock at the same $.015  price.  It is estimated
that ADVB will be  virtually  debt free and have  approximately  $6.0 million in
cash, following completion of the transaction.

The company will move its headquarters to Chicago, Illinois from Woodland Hills,
California and Christopher W. Capps has been appointed  Chief Executive  Officer
and Mr.  Kiphart  non-executive  Chairman of the Board.  It is the  intention of
management  to maintain the current  intellectual  property  portfolio  and seek
partnership with other companies for the licensing thereof.  Management believes
that  interest  earned  on the fully  subscribed  amount  of new  capital,  once
received,  will allow the company to operate on a profitable  basis. Mr. Kiphart
has funded  $1,100,000 and expects the balance of the $6,500,000 to be funded in
approximately  thirty  days  upon  satisfaction  of  certain  conditions  in the
definitive agreement.  In addition,  ADVB intends to pursue acquisitions that it
believes can help it maintain its profitable operations.

The company intends to register as soon as possible a rights  offering  allowing
existing  stockholders to purchase ten shares of common stock at $.015 per share
for every share held.

Mr.  Kiphart  said,  "I am  excited to be more  deeply  involved  with  Advanced
Biotherapy.   The  company  has  terrific  intellectual  property  and  now  has
sufficient  capital to allow it to be profitable and consider  acquisitions on a
going forward basis."

Thomas J.  Pernice,  a member of the Board of Directors,  stated,  "On behalf of
Richard  Kiphart,  the Board of Directors and the new  management  team, I would
like to commend  and thank  Edmond  Buccellato  for his  extraordinary  personal
efforts in establishing the company's extensive patent portfolio and enabling it
to  reach a stage  that  allows  the  company  to  pursue  licensing  and  other
partnership opportunities."


<PAGE>

About Advanced Biotherapy

The  Company,   a  pioneer  in  anticytokine   therapy,   has  demonstrated  the
effectiveness   of   its   pioneering    scientific   strategy   by   conducting
investigational  clinical trials treating patients suffering from AIDS, multiple
sclerosis,  rheumatoid  arthritis,  corneal  transplant  rejection  and  certain
autoimmune skin  conditions,  including  alopecia,  all Th1 mediated  autoimmune
diseases which appear to have the same proinflammatory  Th-1 activity.  Advanced
Biotherapy is headquartered in Chicago with laboratories in Columbia,  Maryland.
The company has an extensive patent portfolio including 7 issued patents.

Forward-Looking Statements

Statements made in this news release,  other than statements of historical fact,
are forward-looking statements and are subject to a number of uncertainties that
could cause actual results to differ materially from the anticipated  results or
other expectations  expressed in our forward-looking  statements.  Some of these
forward-looking  statements  may be  identified  by  the  use  of  words  in the
statements  such  as  "anticipate,"  "estimate,"  "could"  "expect,"  "project,"
"intend,"  "plan,"  "believe,"  "seek,"  "should," "may," "assume,"  "continue,"
variations  of such words and  similar  expressions.  These  statements  are not
guarantees of future performance and involve certain risks,  uncertainties,  and
assumptions  that are difficult to predict.  We caution you that our performance
and results could differ materially from what is expressed, implied, or forecast
by our  forward-looking  statements.  Future operating results and the Company's
stock  price  may  be  affected  by a  number  of  factors,  including,  without
limitation:  (i) availability of capital;  (ii) opportunities for joint ventures
and corporate  partnering;  (iii)  opportunities for mergers and acquisitions to
acquire non-bio technology  businesses or to expand the Company's  biotechnology
base;  (iv)  regulatory  approvals  of  preclinical  and  clinical  trials;  (v)
intellectual  property  matters  (patents);  and (vi)  competition.  Readers are
cautioned not to place reliance on these forward-looking statements, which speak
only as of the date the statements  were made. See the Company's  public filings
with the Securities and Exchange  Commission for further information about risks
and  uncertainties  that may affect the Company and the results or  expectations
expressed in our  forward-looking  statements,  including the section  captioned
"Factors That May Affect The Company"  contained in the Company's  Annual Report
on Form 10-KSB for the fiscal year ended  December 31,  2005.  Given these risks
and uncertainties,  any or all of these forward-looking  statements may prove to
be  incorrect.  Therefore,  you  should  not  rely on any  such  forward-looking
statements.  Except as required under federal  securities laws and the rules and
regulations of the SEC, we do not intend to update publicly any  forward-looking
statements to reflect actual results or changes in other factors  affecting such
forward-looking statements.

Contact:

     Advanced Biotherapy, Inc.
     Christopher W. Capps - (312) 427-1912
     www.advancedbiotherapy.com
