29 August 2006, Melbourne, Australia: Phosphagenics Limited (“Phosphagenics”) (AIM:PSG, ASX: POH) announced today that it has entered into a Material Transfer Agreement with one of the world’s largest cosmetic companies to test the feasibility of using Phosphagenics’ platform technologies to enhance the delivery of cosmetic compounds. 

Harry Rosen, managing director of Phosphagenics, said that this agreement is a further example of the worldwide interest and recognition that Phosphagenics’ platform technology is receiving, and demonstrates its applicability to other fields besides pharmaceuticals. 

“This is a positive development for Phosphagenics. To engage in compound testing with one of the world’s leading cosmetic researcher and producer is a significant step forward and opens the door to further commercial partnerships in the cosmetic industry,” Mr Rosen said.  

“It has been an exciting few months for Phosphagenics, having now signed developmental agreements with the world’s leading food company (Nestle Nutrition), the world’s largest transdermal delivery company (ALZA Corporation), and now with one of the world’s leading cosmetic companies.  

“We are looking forward to capitalising on these and other commercial opportunities in the near future,” he said.  

For further information contact:

Northbank Communications

Rowan Minnion – r.minnion@northbankcommunications.com

Justine Lamond – j.lamond@northbankcommunications.com

Phone: +44 (0)20 7886 8150 

Or  

Phosphagenics

Harry Rosen,

Managing Director

Phone: +61 3 9605 5900  

About Phosphagenics Limited

Phosphagenics is a Melbourne-based, globally driven biotechnology company focused on the discovery of new and cost effective ways to enhance the bioavailability, activity, safety and delivery of proven pharmaceutical and nutraceutical products.  

Phosphagenics’ core technology is built around the science and application of phosphorylation, a process where the addition of a phosphate group has been found to enhance the bioavailability, activity and safety of existing pharmaceuticals and nutraceuticals, as well as to assist in the production of drug delivery platforms. 

Phosphagenics’ shares are listed on the Australian Stock Exchange (POH) and the London Stock Exchange's Alternative Investment Market (PSG). An ADR – Level 1 program has been established in the US with the Bank of New York (PPGNY) for US investors to trade in Phosphagenics’ stock on the ‘over-the-counter’ market.  

For more information, please visit Phosphagenics’ web site at www.phosphagenics.com