GENETIC TECHNOLOGIES LIMITED — Capital/Financing Update 2004

Feb 25, 2004

26 February 2004

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

Dear Sir.

Nanogen License - Additional Value Realized.

In April 2002, Genetic Technologies Limited (GTG-ASX) announced one of the first licenses to the GTG non-coding patents had been granted to Nanogen, Inc. of San Diego, California, USA. At that time, Nanogen paid GTG a signing fee via US\$200,000 in cash, plus securities, in the form of Nanogen warrants.

Subsequently, the price of Nanogen shares fell below the exercise price of the warrants, and guided by the GTG auditors, these Nanogen warrants were duly written off by GTG.

In 2004, the Nanogen stock price has risen and GTG has recently converted its Nanogen warrants into Nanogen shares, and then liquidated all these Nanogen shares on the open market. GTG is pleased to report it has just realized a further US\$275,000 (being around AUS\$350,000) from this sale.

Therefore, with the passage of time, GTG received a total of US\$475,000 from its license to Nanogen (being the original US\$200,000 in cash plus the US\$275,000 just realized).

This additional US\$275,000 will be booked as a profit contribution for GTG in the current financial year.

Yours faithfully,

Dr Mervyn Jacobson Executive Chairman