Wednesday 19 October 2005: Melbourne-based pharmaceutical company Epitan Limited today announced it has successfully raised $6.9 million via a private placement to institutional and private investors and will seek to list on the UK's AIM stockmarket.

The capital raising, supported by investors in Australia and several European countries including the UK, Switzerland, Germany and Spain, was assisted by Australia-based Mariner Corporate Finance, and was over-subscribed.

Epitan has placed 21 million new ordinary shares at 33 cents per share, a 6.1% discount to the Volume Weighted Average Price in the five days preceding the placement. Settlement for this placement is expected to occur by the end of this week. Two Epitan directors, Chairman-elect Dr Roger Aston and Managing Director Iain Kirkwood, participated in the capital raising.

As a result of the fundraising Epitan will apply to list on the UK's AIM market using the AIM Designated Markets, or "fast-track" route, which is essentially a compliance listing. In conjunction with its adviser, UK-based stockbroker Teather and Greenwood Limited, Epitan anticipates that admission will take place in December.

The Epitan board also announced today that it will offer existing Australian and New Zealand shareholders an opportunity to participate in a Share Purchase Plan at 33 cents per share. Existing shareholders can subscribe for up to $5,000 worth of shares. Documentation in relation to this offer will be mailed to shareholders on or around Monday 31 October 2005.

Iain Kirkwood said the funds raised from the placement and the Share Purchase Plan will further supplement Epitan's cash reserves ($4 million at 30 September 2005) and provide the company a solid base to progress EPT1647 (formerly MelanotanT) through Phase III trials, seek a compliance listing on the AIM market, and consolidate EpiPharm's position in the Australian prescription dermatology market.

Epitan's Managing Director Iain Kirkwood said: "We appreciate the strong support from European and Australian institutions for this fundraising. This places us in a solid financial position to progress our very active trial program. Importantly it will also enable us to seek a listing on London's AIM and open the share register to further European investors. There is increasing international interest in our drug's development as we expect to move into Phase III trials next year. This raising also represents an endorsement of our refined clinical and regulatory strategy to focus on Polymorphous Light Eruption as the first indication."

About Epitan
Epitan Limited (ASX: EPT, ADR: EPTNY, XETRA: UR9) is a Melbourne-based pharmaceutical company with a focus on prescription dermatology products. Epitan has two primary activities: to complete the remaining clinical development of its leading drug candidate EPT1647, for which Epitan holds exclusive worldwide rights in the field of use for melanogenesis, and marketing and selling prescription dermatology products in Australia and New Zealand. EPT1647 stimulates the body to make eumelanin, the dark pigment of the skin which has protective effects on the skin from exposure to both UV-A and UV-B radiation. Simply, EPT1647 is a photoprotective agent that acts by increasing the levels of eumelanin in the skin without the need to expose the skin to UV radiation.

For more information contact:

Davina Gunn, Investor Relations & Marketing, Epitan Limited, Tel: +61 3 9660 4900, investorrelations@epitan.com.au

Richard Allen, Oxygen Financial Public Relations, Tel: +61 3 9915 6341