IMUGENE LIMITED — Capital/Financing Update 2006

Mar 12, 2006

LIMITED

ASX ANNOUNCEMENT

NEW TRIAL COMMENCES FOR LEAD POULTRY PRODUCT

13^th March 2006. Sydney: Animal health products company Imugene Limited (ASX:IMU) has commenced the dose ranging and safety study trial for their lead product, the Poultry Productivity Enhancer. This trial, approved by the Office of Gene Technology Regulator in Australia (OGTR) and the Australian Pesticides and Veterinary Medicines Authority (APVMA) will generate data for further regulatory approvals and progress commercial product development. The protocols for this trial were jointly formulated by Imugene and Merial Limited.

Imugene's previous testing showed that birds were 13 percent heavier than untreated birds or birds fed regular commercial feed containing antibiotics.

The Imugene adenoviral vector technology was developed in Australia and works by enhancing the chicken's own immune system enabling the birds to more quickly and effectively fight bacteria and viruses. Late last year the world leading animal health company Merial, signed a sub-licence to finalise product development and ultimately sell the product worldwide.

Trial Design

The trial has two principal objectives. Firstly further product efficacy optimisation testing by evaluating minimum doses, variations to the number of doses and the timing of doses. Secondly, the evaluation of some further safety parameters to enable additional regulatory approvals from the OGTR and APVMA. The safety information generated will include any possible effects on insects, sparrows and starlings. Prior studies have indicated no incidental effects.

The poultry trial is being undertaken in contracted poultry shed trial facilities and will be conducted over 42 days from hatch. A total of 545 chickens (including controls) have been divided into 10 groups for the studies. All chickens will be fed commercial broiler feed that contains antibiotics. Test birds will receive a range of doses at various times to evaluate dose and timing responses.

Imugene expects to receive the dosage optimisation results report approximately 3 weeks after completion of the trial. The safety data results are expected later due to the large number of samples to be tested and analysed.

Perth Office

Level 20, Allendale Square 77 St Georges Terrace Perth WA 6000 Tel: +61 8 9440 2660 Fax: +61 8 9440 2699

ABN: 99 009 179 551

Sydney Office

Registered Office Level 1, 14 - 20 Delhi Road North Ryde NSW 2113 Tel:+61 2 9870 7330 Fax:+61 2 9888 9338

www.imugene.com

About the Poultry Productivity Enhancer

The Poultry Productivity Enhancer is a vaccine that is able to be mass administered to all broilers (meat producing chickens) via drinking water, feed or aerosol after hatching or directly into the egg prior to hatching. The vaccine boosts the chickens' immune system, improving general health and ability to resist bacterial and viral infections.

The vaccine has been demonstrated to be much more effective in promoting health and allowing chickens to reach market weight earlier and with significantly less feed than existing in-feed treatments such as antibiotics. Unlike antibiotics and other feed additives, the Imugene vaccine leaves no residues in the meat that is consumed by humans.

About the Poultry Market

There are over 40 billion broilers produced per annum world wide. In the major markets of the US and Europe, annual broiler production is over 8.5 billion and 6.0 billion respectively.

The industry is concentrated. More than 90% of US broiler production is by the top 20 producer companies. This concentration is similar in the other major markets.

About Imugene

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

Imugene owns the worldwide rights to the Fowl Adenoviral Vector Delivery System for poultry and the Porcine Adenoviral Vector Delivery System for pigs. Imugene has successfully licensed the first product based on the Fowl Adenoviral Vector Delivery System - the Poultry Productivity Enhancer.

Imugene's poultry and pig portfolio is targeting a worldwide US\$3 billion annual market with four lead vaccine products under development and a strong product pipeline. Consumer demands for disease free and residue free food will bolster Imugene's prospects.

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

For more information please visit the Imugene Website www.imugene.com

For more information:

Dr Warwick Lamb Managing Director $+61.2.9870.7330$

Mr Graham Dowland Executive Chairman +61 8 9440 2660

Mr Rudi Michelson Monsoon Communications $+61.39620.3333$