Phosphagenics Announces Plans to Expand its Manufacturing Capabilities

May 23, 2006, 01:00 ET from Phosphagenics Limited

    MELBOURNE, Australia, May 23 /PRNewswire-FirstCall/ -- Phosphagenics
 Limited ("Phosphagenics"), the Australian Stock Exchange (ASX : POH) and
 the London Stock Exchange's Alternative Investment Market (AIM : PSG)
 listed pharmaceutical and nutraceutical company, today announced that it
 has commenced the building of a production plant in Melbourne. The new
 facility, added to the existing unit owned by the Company in Ontario and
 operated under a contract-manufacturing arrangement, will permit a material
 increase in the Company's ability to manufacture tocopheryl phosphates,
 vital components of many of its pharmaceutical and nutraceutical products.
 It will also provide the Company with manufacturing capabilities to meet
 anticipated future supply requirements.
     The new facility, expected to be commercially ready by the end of 2006,
 will be a scaled-up version of the pilot plant used successfully in the
 initial development of Phosphagenics' proprietary phosphorylation process.
 On completion the facility will have an annual capacity of 100 tonnes of
 high purity tocopheryl phosphates with an estimated wholesale value of $A25
 million, although the Company does not expect to utilize all of this
 capacity in the immediate future. The budgeted cost for the upscale
 including all ancillary equipment is $A500,000, with all manufacturing
 equipment complying with Food Standards Australia New Zealand criteria.
     Ian Pattison, Chief Operating Officer of Phosphagenics, said: "The new
 plant will demonstrate our capability to manufacture on a commercial scale
 for current and future licensing partners. On completion it will also allow
 us to step up manufacturing output as the markets for Phosphagenics'
 products develop."
     Notes to Editors
     About Phosphagenics
     Phosphagenics is a pharmaceutical and nutraceutical company with a
 diversified portfolio of technologies encompassing drug delivery, drug
 enhancement, and active ingredients for the nutraceutical industry (dietary
 supplements, functional foods and personal care products).
     Phosphagenics is based in Melbourne, Australia. Its shares are listed
 on the Australian Stock Exchange (POH) and the London Stock Exchange's
 Alternative Investment Market (PSG). An American Depository Receipts-Level
 1 facility has been established in the US with the Bank of New York (PPGNY)
 for the trading of the Company's shares in the US 'Over the Counter'
 market. Further information regarding Phosphagenics can be found at
     Phosphagenics has existing commercial agreements with Zila and ISP for
 the dietary supplement and personal care markets, and has announced joint
 development programmes with Alza Corporation and Nestle Nutrition.

SOURCE Phosphagenics Limited