IMUGENE LIMITED — Capital/Financing Update 2004

Sep 15, 2004

ASX ANNOUNCEMENT

LIMITED

Imugene Secures Receptor Mimic Technology Options for all Animal Species

Imugene is developing alternatives to antibiotics for cattle, pigs and poultry

16 September 2004, Sydney: Imugene (IMU) has signed an agreement with The University of Adelaide for licence options to extend its production-boosting pig Receptor Mimic Technology (RMT) to all other animal species.

RMT is a new generation biological treatment to reduce production animal losses from gastrointestinal diseases—particularly diarrhoeal diseases caused by bacteria such as E.coli. RMT replaces antibiotics or chemical treatments and is safe, easy to manufacture and has low regulatory approval hurdles.

Imugene now has options over licences extending the Company's exclusive global rights to the RMT to all other animal species, except humans.

Imugene Managing Director, Dr Warwick Lamb said, "This is a substantial gain for Imugene. As receptors for many bacteria and viruses are the same across species, receptor mimics designed for one species may be used in other species without any modification."

"This greatly increases the size of Imugene's potential markets including disease control in feedlot cattle."

The pig products target the prevention of Post Weaning diarrhoea and Piglet Oedema disease, both caused by E.coli bacteria. Dr Lamb stated "Imugene has already identified several lead disease targets for cattle and chickens and will commence construction of these receptor mimics immediately. The diseases targeted are currently controlled by in-feed antibiotics."

RMT is a biological (non chemical) platform technology against infectious gastrointestinal diseases with multiple potential applications in all species. Imugene already has a strong biological product portfolio for infectious diseases using Adenoviral Delivery Vectors (ADV). The new RMT range further expands and strengthens the product portfolio.

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

The terms for exercising an option for a particular animal species are based on the terms of the Pig RMT Licence with reduced milestone based payments and royalties. Under the new agreement these payments will now be made to BioMimic Limited, a new commercial company established by Imugene and The University of Adelaide to become the Licensor of the RMT animal applications.

The three-year option to license RMT for other animals is extendable by Imugene for a further two years upon the exercise of an option for at least one species.

END

More information:

Dr Warwick Lamb. Imugene's Managing Director +61 2 9870 7330

Mr Graham Dowland. Imugene's Executive Chairman +61 8 9322 9189

Mr Rudi Michelson Monsoon Communications +61 3 9620 3333

ABOUT IMUGENE:

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

Imugene's products safely prevent disease 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 owns the worldwide rights to two platform technologies. The Receptor Mimic Technology for gastrointestinal diseases of pigs is under license from BioMimic Limited including options for the use of this platform technology over all other animal species. The second platform technology is the Adenoviral Vector Delivery System for pigs and poultry. It is this Delivery System that is used to deliver Imugene's poultry productivity enhancer and the Bird Flu vaccine. Patents have been either granted or are under application in the major pig and poultry markets worldwide.

Imugene's production animal portfolio is tapping into segments worth in excess of US\$3 billion of the annual global spend on existing treatments. The majority of

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

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 organisations, internationally, are lobbying and legislating against the use of antibiotics in favour of non-chemical treatments.

Description of 'How the Receptor Mimic Technology works': http://www.imugene.com/porftolio/receptor.html

www.imugene.com

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

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