IMUGENE LIMITED — AGM Information 2003

Nov 26, 2003

LIMITED

CHAIRMAN'S ADDRESS

ANNUAL GENERAL MEETING 27 NOVEMBER 2003

Welcome to our second Annual general meeting as Imugene Limited.

The past 12 months have been extremely active and rewarding for Imugene as we continued to achieve the various objectives in line with our aim of developing your company into a very valuable animal health business.

Following my address to the meeting, we will deal with the resolutions as contained in the Notice convening this Annual General Meeting and conclude with a presentation by our Managing Director, Dr Warwick Lamb.

Our 2003 Annual Report detailed the many achievements that occurred in the last 12 months. It is worth highlighting some of these significant achievements

$\blacksquare$ Consolidation and increased ownership of the two animal health interests

We began our entry into the animal health industry last year with minority holdings in the two distinct areas of Production Animal, (pig and poultry), disease control delivery systems and companion animal, or pet, flea control. We now boast 100% ownership of the production animal technology, with the acquisition of control occurring midway through this year.

The trials and development work carried out during the year reinforced to us all that our pig and poultry products are highly effective and, importantly, flexible in their mode of administration. The early production costings indicate these vaccines will be inexpensive to produce when compared to chemicals and antibiotics.

The flea control research activities continue to achieve milestones and our ownership of the intellectual property has increased to 37.5%. We anticipate that this will shortly increase to 48% as we fund the next phase of milestone activities.

ABN: 99 009 179 551 Level 1, 14 - 20 Delhi Road, North Ryde NSW 2113 PO Box 307, North Ryde NSW 1870 Tel: +61 2 9870 7330 Fax: +61 2 9888 9338 website: www.imugene.com

$\blacksquare$ Valuable additions to the Management team

Since our last report we have made two very important additions to our management team.

Firstly. Dr Michael Sheppard has been appointed our Chief Scientific Officer. Following a successful international career with Pfizer in the USA. as director of Biological Discovery. Dr Sheppard has joined our team and made immediate impact with his instigation of the research that has led to the efficacy improvement of our platform production animal viral vector technology. His experience with the management and commercial development of biological products has and continues to be of great benefit to Imugene.

Secondly, Dr Kevin Fahey has been appointed as Chairman to our Commercialisation and Scientific Advisory Board. Recently, Dr Fahey retired as Pfizer's USA based executive director of Global Research and Development to return to Australia. His experience and senior standing in the pharmaceutical industry has and will continue to be of immense benefit to Imugene as we progress the commercialisation of our portfolio of animal health products internationally.

Science success – increased efficacy of production animal delivery system

We recently announced a very significant improvement to the efficacy of the pig and poultry vaccine delivery systems. The early stage testing indicated at least a 50 times better 'expression' of the gene or protein included in our vaccines. Trials are underway to quantify the financial effect of this improvement. The process of upgrading all products in our pig and poultry range has already commenced. We anticipate the most important products will all be upgraded by early 2004.

Commitment by the Merck & Aventis animal health company, Merial $\blacksquare$ Limited

Over the past year Merial has completed its validation and initial trials of the three products under contract. These trials were performed in France and the USA. We are in discussions with Merial management regarding the development strategies for each of the three contracted products. At this point in time due to confidentiality provisions, I am unable to discuss in any greater detail the progress achieved by Merial or the development activities agreed and planned for 2004. Upon finalisation of these discussions we anticipate that a joint Merial & Imugene statement will be released to market.

Strengthening of the Groups Financial position including funds raised from capital markets, two government grants, and licensing / collaboration deals

Financially, Imugene remains in a sound position. Since our last report Imugene has raised in excess of \$3m through the placement of 13.8 m new shares in June this year, the conversion of existing options, the licensing and collaboration arrangements and the recently awarded Biotechnology Innovation Fund Grant of \$250,000. Further, in conjunction with our partner in the flea control project, Murdoch University, the flea control research has been awarded a \$240,000 Linkage Grant to progress the research programme.

The Key Objectives for 2004

Our key objective for this coming year is to continue our progress with the commercialisation of the pig and poultry products. This by definition will mean progression through the regulatory environments in the major markets of the world.

The key will be the initial approvals that will allow for the necessary large scale trials of our advanced products. These large scale trials under commercial conditions are likely to be undertaken in Australia. Not only are these trials critical to the regulatory process but also they will add value to the Company as pig and poultry producers will require this evidence of superior efficacy prior to using our products.

Regulatory Dossier preparation has begun and will continue on our lead products. Trialling of additional pig and poultry vaccines is in progress with further trials on potential new products planned for early in 2004. This is essential as we continue to maximize the potential of the delivery vectors, by providing an ongoing stream of products progressing to market.

The commercialisation process has begun and sites for sub-contract manufacturing are under review. We have also commenced the process of determining the most commercially viable methods of storing and transporting for commercial end use.

We will continue to assess new animal health projects that fit within our strategic plans and meet the fundamental requirements of large global markets and products driven by market pull and not technology push.

ABN: 99 009 179 551 Level 1, 14 - 20 Delhi Road, North Ryde NSW 2113 PO Box 307, North Ryde NSW 1870 Tel: +61 2 9870 7330 Fax: +61 2 9888 9338 website: www.imugene.com

We continue to be ruthless in our assessment for new products. Not only must a new product be more effective than the current treatments (antibiotic or drugs) it is essential to be economically viable (that is to manufacture, store, distribute and administer) in the ever increasing cost conscious and productivity oriented animal production farms.

Conclusion

In conclusion, the Company has achieved much in the past 12 months and I have recently referred to 2003 as being our formative year; one from which we can now increase our developmental pace. We, as a collective management team, are excited about the prospects for the coming year as we accelerate our commercialisation activities.

I take this opportunity to extend my thanks to the Imugene management team, of whom there are only five of us, together with the researchers at CSIRO Geelong and Murdoch University - Perth; who have all contributed to our success to date. I wish you all a very successful 2004 with continued advancement and achievement of all our products.

Graham Dowland Executive Chairman

ABOUT IMUGENE:

Imugene Limited (ASX Code: IMU) is an Australian biopharmaceutical company specialising in the development and commercialisation of animal health products for production animals (pigs and poultry) and companion (pet) animals.

Imugene's products safely prevent disease and parasites in animals, reduce or eliminate the use of antibiotics, harmful chemicals and drugs and, in production animals, reduce the level of antibiotic and chemical residue entering the human food chain.

Imugene's poultry and pig product portfolio is aiming to exploit market segments worth US\$3 billion of the existing US\$8 billion global spend on existing treatments per year. The majority of the existing treatments are chemical and antibiotic products that are becoming less effective for disease treatment and productivity enhancement. Compounding the problem of diminishing efficacy, governments and health organizations, internationally, are lobbying and legislating against the use of antibiotics in favour of non-chemical treatments.

Imugene's flea control vaccine development is targeting the global market for flea control products worth in excess of US\$1.5 billion per annum. An efficient biological vaccine has the potential to immediately gain a large share of this market from the current 'over the counter' chemical treatments.

ABN: 99 009 179 551 Level 1, 14 - 20 Delhi Road, North Ryde NSW 2113 PO Box 307, North Ryde NSW 1870 Tel: +61 2 9870 7330 Fax: +61 2 9888 9338 website: www.imugene.com