CRYOSITE LIMITED — Capital/Financing Update 2004

May 19, 2004

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ASX & MEDIA RELEASE

20 MAY 2004

CRYOSITE TO STORE STEM CELLS FOR PETER MACCALLUM CENTRE

Cryosite, Australia's leading outsourced cryogenic storage company, has signed an agreement with the Peter MacCallum Cancer Centre (Peter Mac) for the long term storage of patients' blood stem cells.

This is the first large scale arrangement of its kind in Australia and provides an opportunity for cancer patients to safely store valuable blood stem cells for future use in treatment following highdose chemotherapy.

Peter Mac is Australia's only hospital solely dedicated to cancer and combines treatment and patient care with integrated cancer research programs and drug development laboratories.

Patients with certain cancers may require high-dose therapy as part of their treatment. As chemotherapy inhibits the ability of bone marrow to make new blood cells, stem cells which have been stored prior to treatment can be used to restore normal bone marrow function by re-infusing them following the patient's high-dose therapy.

Effective use of these stem cells requires that they be stored at constant, cryogenic temperatures, which is the service Cryosite provides. As the high-dose therapy may not be required immediately, storage of these cells for months to years is often required.

According to Mr Gordon Milliken, managing director, Cryosite, the agreement demonstrated the potential of Cryosite's storage capabilities and its link to developments in medical science.

"Cryosite already collects and stores cord blood stem cells and other biological material, all stored for individual re-use, so we have the systems in place to facilitate this new service for cancer patients," Mr Milliken said.

"Cancer patients now have more opportunity to store healthy stem cells for future use for the short and long term, which will potentially allow more effective recovery treatments after chemotherapy.

"This agreement with Peter Mac, one of Australia's leading cancer treatment and research centres, indicates wider applications for our cryogenic storage business, taking advantage of Cryosite's existing infrastructure and professional staff," Mr Milliken added.

Under the agreement, the initial collection and short term storage will be performed by Peter Mac and Cryosite will be responsible for the transportation and storage of stem cells after the initial 60day 'short term' storage period.

Stem cells are transported from Melbourne to Cryosite's storage facility in Sydney in specially designed cryogenic shippers at below -150°C.

In Sydney the cells are transferred to Cryosite's larger liquid nitrogen storage vessels and incorporated into the Cryobyte monitoring system for secure, individual storage.

Each patient will sign an individual contract with Cryosite for the storage of their stem cells giving them direct access to their samples at any time and the ability to store cells indefinitely.

Cryosite's operations are in compliance with the TGA code of Good Manufacturing Practice for Human Blood and Tissues.

This agreement is similar to Cryosite's cryogenic cord blood storage service, as each contract will provide annuity-style income with revenue building over the long term.

Cryosite was established in 2000 to provide an outsourced cryogenic storage service and was listed on the ASX in 2002.

Cryosite's ultra-cold and cryogenic storage business has four components:

• collection, processing and storage of stem cells from umbilical cord blood for private use;
• storage and distribution of temperature critical biological and biomedical reagents;
• archival storage of biological samples for the medical, biotechnology, research and ۰ biological industries, and
• clinical trial logistics services

Established more than 50 years ago, today Peter Mac provides specialist treatment and support each year for 90,000 outpatients, 14,000 inpatients and 6,000 new patients with cancer.

ISSUED FOR : :		CRYOSITE LIMITED
FOR FURTHER INFORMATION :		MR GORDON MILLIKEN, MANAGING DIRECTOR, CRYOSITE LIMITED TEL: 02 9420 1412
ISSUED BY-		WESTBROOK COMMUNICATIONS, CONTACT: REBECCA HALL TEL: 02 9231 0922 or 0428 514 510
This release can be downloaded from www.westbrookfin.com.au