IMUGENE LIMITED — Investor Presentation 2004

Jul 12, 2004

IVUGENILLE Animal Health Biological Products

MARKET UPDATE July 2004

IMUGENE

Biological animal health solutions

BIOLOGICAL SOLUTIONS

• Consumers are seeking food products with less chemical and antibiotic residues
• Producers seeking commercially attractive (affordable and $\frac{\partial \mathcal{L}}{\partial \mathcal{L}}$ more effective) alternatives to existing chemicals & antibiotics
• With regulation of antibiotic use in food producing animals H increasing throughout the world, safe and non-chemical solutions are required
• Imugene's production animal products are viable alternatives to solve the increasing problems caused by the emergence of antibiotic resistant 'superbugs' and food residues

Aim to continue to increase shareholder value

by commercialising our product portfolio

through a combination of contract 'biomanufacturing' & partnering arrangements

focusing on lead products with large target markets and rapid market launch times

LIMITED

Imugene has assembled a strong management team with proven experience in international animal health companies:

MANAGEMENT TEAT

• Taking products from research to international market launches
• Management of R & D under commercial guidelines
• Integrating research and regulatory affairs
• Froduct sales, marketing and technical support

Regulatory Process for Biological Products

REGULATORY PROCES

• Not FDA in the United States G
• US Department of Agriculture Ø
• Shorter time frame for registration
• Less stringent data requirements
• Less expensive dossier preparation
• Biologicals and vaccines quicker to register than $\mathscr{D}$ drugs or chemicals in all international markets

= Biologicals quicker to market than drugs

MARKET POTENTIAL PRODUCTION ANIMALS

Pigs

• Health market US\$3.5 billion pa
• Imugene's products cover segments of this market Ŷ) worth in excess of US\$1.5 billion pa

Poultry

• Health market US\$3.3 billion pa
• Imugene's products cover segments of this market Ŷ worth in excess of US\$1.2 billion pa

TECHNOLOGY Platform Technology for Gastrointestinal Disease

RECEPTOR MIMIC

- Next step on from probiotics

• Developed by strong research team
• -4 products currently under development
• All products are for large international markets
• New products planned to ensure product pipeline

Bacteria, viruses and protozoa cause disease by:

RMT - HOW IT WORKS

• Froducing toxins that bind to receptors on the gut wall
• Adhering to receptors on the gut wall
• RMT mimics these receptors
• Toxins or organisms bind to the RMT in the gut and are harmlessly excreted
• RMT prevents the disease production loss Ŵ)

RECEPTOR MIMIC TECHNOLOGY

• Initial external trials should commence by August and take 3-4 weeks to complete
• Scale up to commercial production in TGA approved facility has commenced
• Commercial production by existing approved contract manufacturer
• Distribution through established international veterinary distributors

LIMITED

COMPETITIWE ADVANTAGES

• RMT cannot contribute to antibiotic resistance
• RMT products have no effect on beneficial bacteria Ŷ)
• Cost effective to produce & distribute Ŷ)
• Contract 'bio-manufacturing' facilities widely Ŷ) available world-wide
• More rapid path to market than chemicals or drugs Ŷ)
• No side effects Ŷ)

ADENOMIRALIDELIMER VECTOR TECHNOLOGY

Patented Platform Technology for Vaccines

10 products currently under development

• Waccines against pig and poultry viral, bacterial and parasitic diseases
• Example 3 Biological productivity enhancers
• Large international markets
• Rapid development of new products for new diseases
• PRRS ('pig reproductive & respiratory disease")
• * Avian Influenza ('bird flu')

IPETITIWE ADWANTAGE

• Vaccines are highly protective
• Easy to administer (feed, water or aerosol)
• Multiple trials confirm poultry and pig growth increases up to 10%
• Antibiotic feed additives deliver <4%
• Effective against some diseases that existing vaccines cannot protect against
• Residue free in animal
• No genetic modification of animal

WHY CONTRACT MANUFACTURE?

• Maximises shareholder returns Lower capital expenditure
• TGA approved product sourced from contract manufacturer allows regulatory process to commence much earlier
• Most rapid path to market, first to market
• More sales during patent life
• Ability to increase or decrease production quickly in response to market demand MUGENE

Merial (Merck and Aventis) – world leading animal health company (annual turnover of US\$1.7 billion)

CURRENT AGREEMEI

• 3 vector products under contract
• Market leader in Viral Vector Vaccines Ŷ)
• External recognition of technology by world leader Ŷ)
• Merial to fund all regulatory, trial and scale up Ŷ) manufacturing costs
• Expertise and resources in international product Ŷ) development, regulatory affairs and marketing

PARAGE

• Novel approach to flea control
• Global market is in excess of US\$1.5billion pa based on existing treatments
• Expectation to exceed the sales of the current top selling flea control product (approx US\$480 m pa)
• High profit margins

IMUGENE STRATEGY

• Balance early cash flow with long term profit
• Limited number of licenses for early products Ŷ)
• Focus on products for new markets Ø
• No existing competition
• Commercial demand expedites development
• Launch products to major markets Ŷ)
• Deliver patented genes owned by other companies Ŷ)
• Contract 'bio-manufacture' and distribute Ŷ)
• Some Adenoviral Vector Products
• EXACTE PRODUCTS
• Flea product

CAPITAL STRUCTURE

108 m
2.8 m
4.6 m
4.5 m
\$1.0 m
\$1.1 m
$$0.14 \; m$

LIMITED

IMUSENE

Biological solutions: replacing drugs and chemicals

• Poultry & pig health & growth promotion and disease control
• Flea control in companion animals
• Effective & safe no residues or genetic modification of animal $\mathcal{Q}_\ell$
• Large existing global markets & potential to expand markets $\mathcal{Q}_\ell$
• Multiple commercialisation strategies $\mathcal{G}_\mathcal{O}$
• Multinational pharmaceutical validation including MERIAL $\mathcal{G}_\mathcal{O}$ - the worlds leading animal health company
• IP secure patent position $\mathcal{G}$
• Relevant and experienced management of research, $\mathcal{G}$ development, commercialisation and corporate finance