Phosphagenics assigns license for Phospha-E

Melbourne, Australia 11 October 2006: Phosphagenics Limited (“Phosphagenics”) (ASX Code: POH; AIM Code: PSG) announced today that it has assigned the licensing rights to its patented form of phosphorylated vitamin E, Phospha-E™, from Zila Inc. to Zila Nutraceuticals Inc. ("ZNI").

This assignment is a consequence of the sale by Zila Inc. of the stock of its subsidiary ZNI, to NBTY Inc. (NYSE: NTY). As a result of the sale, NBTY, through its wholly owned subsidiary, ZNI, will now have the right to produce, market and sell Phospha-E in the USA, Canada and Indonesia.

Phospha-E™, which is currently sold in the US as Ester-E®, is a phosphate derivative of vitamin E that has superior therapeutic properties to its parent molecule. In its phosphorylated form, vitamin E has been shown to have enhanced anti-inflammatory properties and be better absorbed by the body. In pre-clinical studies, Phospha-E™ has also been shown to lower cholesterol and triglycerides and prevent the formation of plaque in heart arteries.

ENDS

APPENDIX AND NOTES TO EDITORS

About NBTY Inc.

NBTY is a leading vertically integrated manufacturer, marketer and distributor of a broad line of high-quality, value-priced nutritional supplements in the United States and throughout the world. Under a number of NBTY and third party brands, the Company offers over 22,000 products, including products marketed by the Company's Nature's Bounty(R), Vitamin World(R), Puritan's Pride(R), Holland & Barrett(R), Rexall(R), Sundown(R), MET-Rx(R), WORLDWIDE Sport Nutrition(R), American Health(R), GNC (UK)(R), DeTuinen(R), LeNaturiste(TM), SISU(R) and Solgar(R) brands.

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

Contact details:

Phosphagenics Ltd

Mr Harry Rosen

Managing Director

+61 3 9605 5900 or +61 (0)421 322 757

Northbank Communications

Gemma Bradley / Justine Lamond

+44 (0)20 3008 7550

g.bradley@northbankcommunications.com  / j.lamond@northbankcommunications.com