Immuron Ltd — Regulatory Filings 2003

Nov 10, 2003

November 11th 2003

Company Announcements Office Australian Stock Exchange Ltd (ASX) 4^th Floor, 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

Please find herewith a company announcement "Chairman's Address To AGM" for release and distribution to the market immediately.

Yours sincerely

CONOR GRAHAM

Managing Director & CEO

ANADIS LIMITED ANNUAL GENERAL MEETING 2003 CHAIRMAN'S ADDRESS

Fellow shareholders, ladies and gentlemen,

In the twelve months since we last met, Anadis has been diligently pursuing its strategy, and today is an opportunity to review progress.

Anadis is a company engaged in developing human therapeutics derived, principally, from bovine colostrum. As I pointed out at last years annual meeting, we have long term research programmes focussed on developing pharmaceutical products from this base. But, importantly, these are now carried out alongside earlier exploitation of that same research, by development and distribution of nutraceuticals.

Research & Development.

During the year we had three clinical trials being conducted. Two involved our treatment of osteoporosis, namely Osteoporon, and one involved our treatment for H. pylori, namely Pyloran.

The Osteoporon trials are relatively long term and continue today. One of the trials focuses on osteoporon as a pharmaceutical, whilst the other is determining its effectiveness as a nutraceutical. We are hopeful of obtaining results of the nutraceutical trial in the next few months.

The Pyloran trial was completed just recently. It was conducted by Professor Frank Dudley at the Alfred Hospital. The results indicated a significant impact of our colostrum based product on H. pylori, which is the bug most commonly associated with stomach ulcers. We have been very encouraged by these results and plan on preparing a nutraceutical for the market, initially in Asia, as soon as practicable. We also continue to research a pharmaceutical to combat H. pylori.

Other projects on which research continues include our respiratory, bioshield, and Enterovirus 71 products.

The respiratory product is designed to counter airborne infections and has attracted the interest and support of the defence organisations both here in Australia and overseas. It is perceived as a potential counter terrorist measure. However, it is not limited to that use, and we plan to investigate the application of related technologies to asthma and other respiratory problems.

The bioshielding product is also an exciting prospect. You may recall that this product allows treatments to be delivered to the body effectively countering the impact of gastric juices which often destroy the beneficial impact of such treatments. We were very encouraged when, earlier this year, we won a Biotechnology Innovation Fund grant financing further research into this product.

The Enterovirus 71 work is being done for the Taiwanese government body, DCB. The development being sought here is a product, naturally based, which can be delivered to large numbers of children in Taiwan, to prevent epidemics of Enterovirus 71. Enterovirus 71 causes a disease similar to polio and regularly causes epidemics in the Asian/Pacific region. The regular epidemics of this disease in Taiwan means that it is of particular interest to the Taiwanese people. DCB therefore has given some urgency to the development of this product, and we are hopeful of having results in the next twelve months. The agreement the company has with DCB for this product includes manufacturing by Anadis and distribution throughout Asia by DCB. Anadis will retain the rights to distribution throughout the rest of the world upon successful completion of the development work.

Manufacturing.

Our contract manufacturing at our premises in Campbellfield continues to be very successful. For the second year running, we experienced growth of 50% in our gross revenue relative to the preceding year. Much of that growth comes from the success of our major client, Aussie Bodies, but we have also won a number of new clients. Importantly, the growth in new clients often involves supply of our own base colostrum product, which yields a better margin for us. Many of these new clients are located overseas, such as Korea and Japan, and the relationships established from these will greatly assist the launch of our nutraceuticals into those regions.

One of the major events on the Anadis calendar in the short term is the launch of its first nutraceutical, Preventyn. Preventyn is the new name for the product formerly known as Travelan. We changed that name following the demise of Pan Pharmaceuticals which had a product called Travacalm. We did not want any confusion in the market place between our product and that one. The process of the product launch is quite time consuming, when you allow for the harvesting of the raw material. We have been very pleased to conclude a relationship with Tatura Milk Industries whereby they collect and supply the "supercharged" colostrum. Conor Graham, our CEO will outline a little more about the product launch after this meeting.

Corporate Governance.

There has been a lot of attention to corporate governance over the last twelve months, and your board has been mindful of it. We believe there has to be a balance between instituting processes to totally meet the ten principles enunciated and maintaining a business being run in the best interests of shareholders, especially in a small company like Anadis. The board as a whole deals with many matters, such as nominations, executive remuneration etc as there are only five of us anyway, and this is often the most efficient manner of dealing with some of these matters.

We have altered the composition of the audit committee, so that it is no longer chaired by me, but by Peter Jenkins, an independent director. Conor Graham, our CEO, is no longer a member of that committee, although he does attend the meetings as required in his capacity as CEO.

One area that we did consider was the matter of independent directors, According to the definitions set out in the enunciated principles, only two of the five directors are truly independent. Professor Robins-Browne, whilst not directly benefitting personally, is head of a University of Melbourne department which derives a fee from Anadis for carrying out some of our research. This theoretically impacts his independence. However, we believe the expertise Roy brings to the board is invaluable. Roman Zwolenski has acted as a consultant to the board in the past two years, and this theoretically impinges upon his independence. Once again, we have taken the view that the benefits he brings through his considerable experience in our sector, outweigh any perceived disadvantage.

Shareholding.

You may recall that, at last years annual meeting, I noted the impact on our share price of a sell decision by our then major shareholder. We have been pleased to note the completion of this disposal –to some of our longstanding shareholders, in fact- and the beneficial impact this has had on our share price.

Cash position.

Our cash position remains sound. In a company like Anadis, this continues to be a focus, but the growth in our contract manufacturing, success in attracting government funding, and taking advantage of tax loss conversion to cash refunds, all help. During the year, we were pleased to successfully win a START grant to fund our research into treatment against h-pylori. This grant, which we shall draw down over the next two years amounts to \$525,000. We have to match that, but we were committed to that level of research spending anyhow, so the grant is a win.

Our balance of cash and cash equivalents at 31 October was in excess of \$3 million, \$2 million of which we expect to be on hand in twelve months time.

Finally, I would like to thank the executive team at Anadis for their commitment and contribution. They are very focussed on the success of the company, whether it be in the research area or the contract manufacturing area. Also, to my fellow board members who unstintingly give their time rounded off with sound advice.

Thank you.

Philip Molyneux

11 November 2003