14th September 2005

INVESTOR NEWS RELEASE

Farmacule Achieves Key Milestone in Molecular Farming Project

Farmacule has realised a major milestone in achieving its strategy to become Australia's first commercial molecular farming enterprise. In a 'world first', Farmacule can confirm that its first molecular farming product, an extra cellular matrix protein known as Vitronectin, has demonstrated equivalent performance in a "gold standard" cell migration assay when compared to a leading commercial product derived from a mammalian source.

Vitronectin is currently extracted from human plasma and used as a coating for tissue culture plates and has potential applications in many areas of medical research (wound healing, cancer therapy, biomimetics, disease pathogenesis etc). Vitronectin has also been implicated as having a role in both thrombosis and inflammation. As such, it appears that the potential market for the protein may extend beyond its use in tissue and cell culture.

The key advantages of Farmacule's plant derived Vitronectin when compared to current commercial mammalian sources, include:

• Enhanced product safety - minimal risk of pathogen transfer and infection
• Economies of scale - significant reduction in production costs
• Production efficiency- plants offer flexibility and continuity of supply

Following the confirmation in November 2004 of "in planta" production and extraction of Vitronectin from "elite" tobacco plants, Farmacule has focused on optimising the production, extraction and purification of Vitronectin. Farmacule currently produce and extract Vitronectin from "elite" tobacco plants grown in QUT facilities in Brisbane.

Farmacule is currently in discussions with ASX listed, Tissue Therapies Limited, in relation to the contract production and supply of Vitronectin for use in its VitroGro® products. Vitronectin is a vital ingredient in VitroGro® and Tissue Therapies is seeking to utilise an alternative plant derived commercial source to their current mammalian derived Vitronectin (Tissue Therapies Limited, 2004).

Farmacule is an Australian biotechnology company focused on developing high value innovative products for the global molecular farming and crop protection markets using novel intellectual property.

Farmacule is an unlisted Australian public company formed to commercialise intellectual property in the areas of plant transgene expression and transformation, originally developed at QUT's Centre for Molecular Biotechnology.

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