GENETIC TECHNOLOGIES LIMITED — Capital/Financing Update 2004

Sep 21, 2004

ASX ANNOUNCEMENT September 22^nd, 2004

GTG Reports Significant License Agreement with Genzyme Corp. of USA.

Genetic Technologies Limited (ASX-GTG, NASDAQ-GNTLY) is pleased to report it has granted a significant license to Genzyme Corporation, based in Cambridge, Massachusetts, USA. Genzyme is a large and respected biotechnology company listed on NASDAQ (GENZ), with current sales of some US\$2 billion per year. Genzyme Genetics is a division of Genzyme Corporation which offers a broad range of human genetic tests, including a number of tests based on the GTG non-coding patents.

The GTG license to Genzyme is a significant achievement for GTG. Genzyme will pay GTG a signing fee of \$7.5M – of which \$5M will be in cash and \$2.5M will be in the form of "in-kind" Genzyme intellectual property now offered to GTG. Genzyme will also pay GTG a fee of \$1M per year for the life of the non-coding patents (currently till 2015).

The license granted by GTG to Genzyme covers a wide range of human genetic testing applications - including research, pre-clinical trials and commercial genetic testing. These rights will apply non-exclusively in USA, Europe and Japan - but not at all in the Asia-Pacific region, where GTG continues to build its own leading genetic testing capability. Indeed, Genzyme Genetics has offered to assist GTG build up GTG's revenue-generating capabilities in Australia, New Zealand and Asia, based on specialised tests developed and now offered by Genzyme Genetics in USA.

The new license agreement between GTG and Genzyme is intended by both sides to be the first step in a long-term strategic alliance, to be further defined and expanded via further step-wise commitments between GTG and Genzyme, as appropriate.

FOR FURTHER INFORMATION PLEASE CONTACT

Dr. Mervyn Jacobson, Executive Chairman, Genetic Technologies Limited Phone: $\pm 61$ 3 9415-1135.