Immuron Ltd — Capital/Financing Update 2008

Feb 25, 2008

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Sale of Anadis Contract Manufacturing Business

Tuesday 26 February 2008

Anadis Ltd has concluded the sale of its contract manufacturing business.

The divestment of this non core business activity of manufacturing food type products for third parties was foreshadowed in the Company’s announcement to the ASX on February 12[th] 2008.

This sale has generated immediate gross proceeds of approximately $780,000. In addition, a negotiated profit share arrangement has the potential to earn Anadis in excess of $250,000 over the next 12 months. The purchaser will offer employment to relevant Anadis employees and will take over the head lease of the Anadis facility in Campbellfield, Melbourne. Under the sale arrangements, Anadis Ltd will continue to use the Campbellfield premises as a centre for some of its R&D project management.

As a result of this divestment, Anadis will solely focus on its core business as a biotechnology company with a proprietary technology platform and R&D pipeline in the area of naturally derived polyclonal antibodies, and the resultant products such as the Anadis Travelan product for the prevention of traveller’s diarrhoea. Travelan will continue to be manufactured for Anadis, as it has in the past, through appropriately certified pharmaceutical grade manufacturers.

The Company will continue to operate a diversified R&D programme with scientists based in research laboratories at Melbourne University and veterinarians based at Victorian dairying regions. This ongoing work is supplemented with international R&D collaborations in the USA and more recently in Israel.

The Directors believe that the sale will improve efficiencies and output from the R & D programme. In addition current shareholders and prospective investors should have a clearer picture of the Anadis R & D and business strategy following the removal of the risks and significant overheads and continuing capital requirements associated with the operation of a manufacturing business.

As reported on 12 February 2008 Anadis shares have been suspended from trading on the Australian stock exchange and directors consider it appropriate to remain suspended until there is a definitive outcome on the capital raising that the company is seeking. Divesting the contract manufacturing business has relieved the immediate financial strain on the Company, efforts now continue for new capital to implement the growth plans for the business.

Roman Zwolenski Chairman

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