IMUGENE LIMITED — Capital/Financing Update 2003

May 7, 2003

LIMITED

ASX Release 8 May 2003 ASX Code: IMU

NOVEL FLEA VACCINE RESEARCH ACHIEVES MILESTONE

Australian biopharmaceutical group Imugene announced today the successful completion of Stage One of the research and development of a novel flea vaccine. The research being undertaken in conjunction with Murdoch University, has met the first of three scheduled milestones and work has commenced on the second and third stages.

Managing Director. Dr Warwick Lamb said: "The research team have successfully identified the potential vaccine candidates and narrowed the choice from more than thirty five down to three. These three vaccine candidates are now in Stage Two where they will be validated by a separate method. At the same time, Stage Three early vaccination trials have been commenced in parallel, to ensure the shortest possible time to completion of the research."

The vaccine concept is unique in the world flea control market because it seeks to kill fleas on dogs or cats using biological methods instead of chemicals. The aim of the vaccine is to create an immune response in the animal's blood, so that when a flea bites and feeds on the blood, it will die.

"The vaccine will give pet owners a non-chemical alternative without having to worry about applying powders and rinses" said Dr Lamb. "All that will be required is an injection administered by the veterinarian at the animal's routine annual visit."

"Flea allergy dermatitis is the most prevalent skin disease in pet animals in many parts of the world and accounts for up to half the number of the visits to the veterinarian" he said.

Imugene Executive Chairman Graham Dowland said: "The global market for flea control products is 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. Initial estimates also indicate that the flea vaccine will be a very high margin product."

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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

ABOUT IMUGENE:

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

The Flea Vaccine research is jointly owned by Imugene and Murdoch University and the joint venture vehicle, 'Paragen', holds the intellectual property relating to the flea vaccine research.

website: www.imugene.com

For further information, contact:

GRAHAM DOWLAND	- EXECUTIVE CHAIRMAN.	Tel: +61 8 9322 9189
DR. WARWICK LAMB.	- MANAGING DIRECTOR	Tel: +61 2 9870 7330
DR. COLIN HORT	- COMMERCIAL MANAGER	Tel: +61 2 9870 7330