THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Hana Biosciences, Inc. (HNAB)

4/7/2006 Proxy Information

Paramount BioCapital

In connection with a private placement in February 2004, we engaged Paramount BioCapital, Inc. (“PBI”) as our placement agent and paid PBI the sum of approximately $327,000 as commissions for its services. We also issued to PBI a 5-year warrant to purchase 196,679 shares of common stock at an exercise price of $2.375 per share, which now represents the right to purchase 277,330 shares at a price of $1.68 per share. In connection with our April 2005 private placement, we paid PBI a cash fee of $52,500 and issued a 5-year warrant to purchase 58,593 common shares at a price of $1.57 per shares as a result of an investment by two investors previously introduced to us by PBI. Dr. Michael Weiser, a director of our company, is an employee of PBI or an affiliated entity.

Private Placement Investments by Officers and Directors

In our February 2004 private placement, we sold 84,210 shares of our common stock for total proceeds of $200,000 to Kier Family, LP, a limited partnership of which Isaac Kier, a director of our company, is general partner. In addition, Mr. Kier and his affiliates purchased179,641 shares of our Series A Preferred Stock in the July 2004 private placement in exchange for aggregate proceeds of $600,000. In our April 2005 private placement, Mr. Kier and his affiliates purchased 253,906 shares of our common stock at a price of $1.28 per share and, in connection with such offering, received warrants to purchase an additional 76,171 shares at an exercise price of $1.57 per share. Further, in our October 2005 private placement, two affiliates of Mr. Kier purchased an aggregate of 76,252 shares of our common stock at a price of $4.59 and also received warrants to purchase an additional 15,250 shares at an exercise price of $5.80 per share. The terms on which Mr. Kier or his affiliates purchased these shares were identical to the terms in which the other investors in these offerings purchased our securities, except with respect to the October 2005 private placement, in which non-affiliated investors paid only $4.00 per share of common stock.

In connection with our April 2005 private placement, Mark Ahn and his spouse each purchased 19,531 shares of our common stock at a price of $1.28 per share and each received warrants to purchase an additional 5,859 common shares at an exercise price of $1.57 per share. In the same offering, Fred Vitale purchased 23,437 common shares at $1.28 and received a warrant to purchase an additional 7,031 shares at an exercise price of $1.57 per share. Further, in our October 2005 private placement, Dr. Ahn and his spouse each purchased 5,446 shares of our common stock at a price of $4.59 and each also received warrants to purchase an additional 5,446 shares at an exercise price of $5.80 per share. The terms on which Dr. Ahn and his spouse purchased these shares were identical to the terms in which the other investors in these offerings purchased our securities, except with respect to the October 2005 private placement, in which non-affiliated investors paid only $4.00 per share of common stock.

In connection with our April 2005 private placement, Fred Vitale purchased 23,437 common shares at $1.28 and received a warrant to purchase an additional 7,031 shares at an exercise price of $1.57 per share. Further, in our October 2005 private placement, Mr. Vitale purchased 43,572 shares of our common stock at a price of $4.59 and also received warrants to purchase an additional 8,714 shares at an exercise price of $4.59 per share. The terms on which Mr. Vitale purchased these shares were identical to the terms in which the other investors in these offerings purchased our securities, except with respect to the October 2005 private placement, in which non-affiliated investors paid only $4.00 per share of common stock.

NovaDel Pharma Inc.

In October 2004, we entered into a license agreement with NovaDel Pharma, Inc. At the time of such agreement, Dr. Lindsay A. Rosenwald owned in excess of 20 percent of the outstanding common stock of NovaDel, and, together with certain trusts established for the benefit of Dr. Rosenwald or members of his family, Dr. Rosenwald owned more than 10 percent of our common stock. Dr. Rosenwald also owns and controls PBI.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our officers, directors and persons who are the beneficial owners of more than 10% of our common stock to file with the SEC initial reports of ownership and reports of changes in ownership of our common stock. Officers, directors and beneficial owners of more than 10% of our common stock are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. Based solely on a review of the copies of the Forms 3, 4 and 5 and amendments that we received with respect to transactions during 2005, we believe that all such forms were filed on a timely basis, except for those items listed in the table below. (See page 38 of proxy for table).