Manhattan Scientifics Acquires 43 Million MHTX Common Shares From Lancer Fund Trustee

October 16, 2007

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New York City-- Manhattan Scientifics Inc. (MHTX) announced today that, in a court-approved transaction, it has acquired all 43 million shares and 10 million warrants of MHTX held by the SEC appointed Lancer Funds Trustee. Manhattan Scientifics completed a $1.1 million Private Placement, a portion of which enabled this transaction, thereby removing this overhang from the market.

The company is completing its audit and intends to regain its status as a fully reporting Bulletin Board listed company.

The foregoing press release contains forward-looking statements which are subject to risk and uncertainty which may be beyond the company's control..