GENETIC TECHNOLOGIES LIMITED — Capital/Financing Update 2003

Mar 9, 2003

March 10^th, 2003

The Manager, Company Announcements Office Australian Stock Exchange Limited Exchange Centre, 20 Bridge Street Sydney NSW 2000

Dear Sir,

GENETIC TECHNOLOGIES ANNOUNCES STRATEGIC ALLIANCE & CROSS-LICENSING AGREEMENT WITH PYROSEOUENCING.

Genetic Technologies Limited ("GTG"), is pleased to announce it has entered into a strategic alliance and cross-licensing agreement with Pyrosequencing AB, of Sweden.

Under the terms of the agreement, Pyrosequencing receives a broad, non-exclusive license to GTG's non-coding DNA analysis and mapping patents, with application to all genes and all species, but only when used in combination with Pyrosequencing's "sequencing by synthesis" reagents.

In return, GTG receives:

• a signing fee of US\$500,000 (A\$833,000), plus
• rolling royalties on Pyrosequencing's global sales of reagents for "sequencing by synthesis" for the life of the GTG patents, (till December 22^nd, 2015), such royalties estimated to be worth more than US\$1.3M (A\$2.16M) to GTG, plus
• 3 state-of-the-art analytical instruments, altogether valued at US\$420,000 (A\$700,000), to be installed at GTG's main laboratory in Melbourne, plus
• a license to Pyrosequencing's patents, plus supplies of "sequencing by synthesis" reagents plus 7 new gene-based assays to support GTG's expanding genetic diagnostics business and its world class cancer susceptibility testing facility, now being established in Melbourne, these contributions being valued at US\$800,000 $(AS1.33M).$

In summary, the agreement with Pyrosequencing is estimated to be worth more than US\$3M (A\$5M) to GTG, and there are several noteworthy aspects to this agreement:

• It provides GTG with a valuable mix of cash, equipment and know-how. $\bullet$
• It is GTG's largest licensing transaction to date.
• In addition to up-front fees, it provides GTG with significant ongoing revenues. ۰
• It extends GTG's licensing program to Europe. ۰
• It provides further validation of the value and importance of GTG's non-coding patents.

Further license agreements will be announced when appropriate.

Yours faithfully,

Dr. Mervyn Jacobson Executive Chairman