IMUGENE LIMITED — Capital/Financing Update 2005

Jan 20, 2005

ASX ANNOUNCEMENT

LIMITED

Finalisation of \$5m Share Placement

21 January 2005, Sydney: Imugene (ASX: IMU) has finalised the \$5 million share placement as announced on 23 November 2004. The placement comprised 20 million new shares at 25 cents each and 4 million new options exercisable at 50 cents on or before 31 January 2007. The funds were raised from institutional and sophisticated investors. Two of these institutions have now lodged substantial shareholding notices each advising their respective ownership has increased in excess of 5% of Imugene's share capital.

These funds will speed commercialisation of Imugene's lead products: the RMT preventative product for post weaning diarrhoea in pigs, our two pig disease preventative vaccines and the Poultry Productivity Enhancer.

Imugene begins 2005 in a commercially solid position with appropriate funding, experienced management and consultants and the sound strategy to capitalise on the potential of our lead products.

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More information:

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

Mr Rudi Michelson Monsoon Communications +61 3 9620 3333

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

ABOUT IMUGENE:

Imugene specialises in commercialising animal health products for production animals including pigs, poultry and cattle.

Imugene's products safely prevent disease and reduce or eliminate antibiotics and harmful chemicals in animals. Animal antibiotics and chemicals in the human food chain

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

have been linked to the emergence of dangerous resistant bacteria in people and food residues

Imugene owns the worldwide rights to two platform technologies. The Receptor Mimic Technology for gastrointestinal diseases of pigs and potentially all other animal species. Secondly, the Adenoviral Vector Delivery System for pigs and poultry delivers Imugene's highly effective poultry productivity enhancer.

Imugene's poultry and pig portfolio is targeting a worldwide US\$3 billion annual market and replace existing chemical and antibiotic products. Consumer demands for residue free food and health regulatory pressures will bolster Imugene's prospects.

Visit the Imugene Website: www.imugene.com

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