Immuron Ltd — Regulatory Filings 2004

May 26, 2004

From the CEO.

Dear Shareholder.

Welcome to the first newsletter of 2004. 2003 was indeed a busy vear for Anadis - and 2004 is shaping up to be even more successful. Our toll manufacturing throughput continues to grow, we continue to accelerate and expand our research and development pipeline and we are seeking further support from government

and commercial sources to drive this work. We will be launching Travelan shortly in

Melbourne and will be looking to expand bevond this initial base as quickly as possible into the rest of Australia and overseas We are also

looking at options for other products from our research process. To further support.

the company we have appointed Arie Nudel as our Investor Relations Officer to develop communications with the market. We are also redesigning our website for better delivery of information and this should be completed by early June Sincerely yours

Conor Graham, Managing Director & CEO aniin

Travelan in Production!

Bali belly, Montezuma's revenge, Delhi belly... they all mean the same thing; and for those of us unfortunate enough to have experienced travellers' diarrhoea, it is definitely not

pleasant! Travellers' diarrhoea is a sure way to ruin an expensive holiday or an important business trip, but until now there was little that could be done to prevent it. Travelan.

Anadis's first researchbased product, significantly reduces the risk of travellers' diarrhoea and the symptoms of gastrointestinal disorders

Anadis's first researchbased product, significantly reduces the risk of travellers' diarrhoea and the symptoms of gastrointestinal disorders

• and is now in production for release in Melbourne in coming weeks.

Processing of colostrum for commercial production of this safe, natural preventive has already

begun,

packaging has been designed and product is on its way to be blister packed. Travelan is a breakthrough product for protection from $E$ , $\text{col } t$ infections. Travelan reduces the risk

of travellers' diarrhoea and the symptoms of gastrointestinal disorders. and can also reduce symptoms if travellers became infected before

beginning a course of treatment.

A continuing supply of antibodies is also assured, since none of the 1200 cows vaccinated as part of initial production trials with Tatura Milk Industries has shown any negative effects from vaccination. This means an unlimited number of cows can be vaccinated

for the next production mars.

There has been considerable interest generated for Travelan, both locally and overseas.

We are very excited about Travelan, the first of a number of products we will be releasing to the domestic and international markets in the near future.

FOXALIST OTA ANADIS 2008-20048 The year The RAVIEW

The past year has been an Important one for Anadis in terms of research development and commercial success, and the next 42 months look set to be even bigger.

March

Anadis wins \$400,000 Australian Government AusIndustry START grant for the development of a nutraceutical based on existing expertise in Helicobacter pytoni-Anadis's Pytoran product,

Professor Roy Robins Browne presents findings using Anadis's residuatory protection technology at the American Society of Merobiology Biodefence Research Conterence. These demonstrate the successful was a antibody and antibody fragments to protect against aerososdelivered bacteria such as those that cause authors and plague

April

The Australian Government Therapeuke Goods Association suspends Pan Pharmaceulicals' manufacturing license. This leads to difficult times for many companies involved with nutraceuticals; share prices in the health care sector as a whole suffer from lack of investor confidence.

May

Anadis establishes a business linkage with Tatura Mik Industries (TMI), TMI, in the centre of Victoria's largest dairy production region, is a successful milk manufacturing company that is positioning itself at the forefront of innovative dairy product manufacture. This linkage is unportant for the scanna and of highande colostrum based product manufacture. taking advantage of TMI's production facilities and Anadis's research and mellectual monethy

The overhang of shares weighing down the Anadis share price is sold to an investment group, The share price begins an upward trend for the first time in more than two years,

Anadis receives a second AusIndustry Grant of \$115,000 as support for the Pyloran product

Product development is to be completed by the end of December 2004 and involves scientists and technicians issed at Melbourne University, the Murdoch Children's Research Institute, the Alved Hospital. Rotterdam's Frei University and Anadis's own facilities.

September Anadis begins invoer-

imminising cows for Travelan, a formulation for the prevention of travellers' diarrhoea. The cows are immunised with a vaccine

containing maior antigens. against the most common strains of E. coll bacteria that cause travellers diarrhoes.

October

Colostrum Phis the first product in Anadis's Nutracenticals to Asia marketing campaign, is launched in Seoul after wo years of regoriations. with the Republic of Kenez's Food and Drug Administration, Anadis now markets and distributes an Anadis branded product in this important market of over 40 million consumers wan achievement that has generated further interest in the Anadis range of health. products from other Asian countries.

Pyloran is proven to be effective against gas ritis caused by H. pylogi. A sophisticated clinical trial at Melbourne's Albed Hospital shows measurable beneat to patients, with significant relief of symposius and a reduction in intection.

Based on these results. Anadis plans to tameh a non-prescription product for gastriffs relief a safe, effective and healthy addition to the main. billion dollar conventional pharmaceutical treatment. market for the treatment of He by ort and gastelits.

February Processing of hyperimmunised colostrum for

the production of Fravelan begins.

Anadis wins a \$785,500 research grant from the Australian Government for the neutralisation of respiratory oxins and pathozens. Early work on this technology is already the subset of

collaboration between Anadis and the Australian Department of Defence.

This of Osteoperon are cancelled due to lack of positive results in the short term, and the company's focus on governant based profects.

March

Production of Travelari tablets using hyperimmunised colostrum begins. Packaging is designed and a marketing strate cy 13 implemented.

iune

Travelan, Anadis's first research based product, to be launched in Melbourne. Preliminary results from Enterovirus 71 (EV71) animal trials should be available.

Note: While every effort has been made to ensure these dates are correct, Anadis cannot be responsible for delays due to circumstances beyond the firm's control.

Working with Australian and American defence forces on global biodefence research

Three years ago, Amidis initiated ground-breaking research into out using binding proteins to confer protection from pathogens that enter the body through the respiratory system.

That work has corre a long way in three years, Current research focuses on delivering short-term brotection to antifax and the preumonic form of plague - two diseases of immense historical significance, and two diseases of intriediate concern to military and security agencies around

the world:

This is a long-term project, but we at Anadis are very excited by the extraordinary amount of interest in this highly regarded project. It has attracted attention from respected scientists and government in Australia and internationally. A measure of that

attention is the \$786,000 Innovation Access Program Grant recently awarded to Anadis by the Australian Government tistally reserved for a cademic institutions, this important grant has been given to a

commercial organisation for the fret time in light of the importance of this research

Professor Myron Levine. Director of MARCE (the Mc-Alantic Regional Centre of Excellence in Blockerse and Emerging Infection Diseases in the United States)

• Anacls's main American colliboration orientisation recently confirmed the importance of the science thyoived in this research. and the collaboration with Anadis and the Australian Department of Defence, to stiengthening biodefence

tor better counters: Anadis also sees civilian applications as an important part of product development from this research, principally. in treating asthma and hayleyer. Antibody preparation and hypoalegeriisadon work is under way to reduce alergic responses and our řesearch team fa already. reporting significant success. We'll bring you more information as it is dested by the relevant. organisationse

Pyloran - gastritis and ITT stomach ulter treatment

Using a \$515,000

AusIndustry grant, Anadis is working on a new product to treat gastrifis and stomach ticers associated with the Helicobacter pylori bacterium, following. positive results from Pyloran clinical trials in October 2003. Recent discoveries

in Anadis's vaccine

technology could lead to i new generation in this family' of products.

Feedback from Asia and other potential markets will play a major role in determining what form the commercial application of this research will take: if a nutraceutical is decided on we may have a product ready early in 2005.

New 'contract mantfactured' health food products

Several clients have been working closely with Anadis over recent months to develop exciting fiew health food products that address dietary issues such as gluten liéedom.

Our largest client, Aussie Bodies, has developed an entrely new "IRIM" range with an assortment of products that present a .... the health conscious with a variety that can be

consumed throughout the day. This range will have edectic names stich as AM. PM Anytime and Start the Day and will be available in health food stores and supermarkets.

Another clent has developed a new range of specialised lowcarbohydrate bakery and dessert products that are expected to hit the shelves in the near future.

EV71 research breakthrough!

Anadis has been working with the Taiwan Governments Developmental Centre of Biotechnology for more than a year to combat Enterovirus 71 - commonly known as EV71 - a virus that causes regular outbreaks of sometimes faial policlike disease in children throughout South and Southeast Asia.

EV71 has been a challenging project and has presented our researchers with some senous scientific hurdles.

The good news is that it's now possible. to produce virus for vaccination in cattle on: a commercially viable scale. By the time this newsletter goes to print the first animal scientific trials will be under way both in Australia and Taiwan. and preliminary results. will follow in coming momine

If Anadis's EV71 preventive is successful. production could generate \$20 million a year in Taiwan alone.

ANADIS LIMITED WARRENT

a Cantal Link Drive Campbellikid Victoria, Australia 5061. Phone (61+3) 9358 (488 Fax (61+310358 6358) www.anadis.com.au

Anadis Profile

Steve Skorobogaty General Manager -

Commercial

Steve foirfed Anadis in early 2000, bringing with him a wealth of marketing. organisational and business experience.

After finishing full-time service with the Australian Defence Rotee, Steve worked for five vears with Shell Australia as National Techttical Service Margoer Chemicals: Moving on to bécome Australian manager of Gloco-BRI (now Invitrogen - a

multinational life sciences corporation) for seven years - Steve actually worked in competition with Anadis CEO Conor Graham's company Filton now owned by CSL. Steve was later appointed. Asía-Pacífic sales and marketing manager for NNI Corporation, part of the United States-based Sybron group. Steve's work. concentratéd on scientific. pharmaceutical and Momedical product lines. In late 1999, Conor approached Steve with an offer to commercialise Attaclis's products and to

build a manufacturing facility, Steve currently heads the development of Anadis's Healthy Foods for Asia program and is focusing on commercialising Pylorin, EV71 and the launch of Travelan. Steve lives in Melbourne with his wife and daughter. He enfoys a wide range of outdoor and physical activities. Steve also Bolds a number of clitectorships in community groups.

Anadis's headquarters in Campbellfeld, Melbourne is expanding to meet the fina's commercial growth as well as to accommodate a growing filmber of administrative and research staff

A new production facility for large-volume packaging his been constructed. within the existing building to streamline and free the main blending room and to increase total production capability,

The maintenance area is now dedicated and segregated with dust extraction, air conditioners, compressors and other aroduction surflames. In addition to this riew entrances, Viewing stations and 'no go' zones have peen implemented in all production areas to provide top-level hygietie

and a safety.

An additional foodgrade blender has been purchased to allow the main blender to concentrate on largescale production: the new machine will be used for specialised mixes, and is ideal for trial batches of flew products and smaller production runs. The

blending room will also house a decleated area for bulking and preparing frigredients for blending, as well as storage for highvalue products.