PHOSPHAGENICS ESTABLISHES AMERICAN DEPOSITORY RECEIPT PROGRAMME

Melbourne, VIC, Australia, 27 March 2006: Phosphagenics Limited (“Phosphagenics”), the Australian Stock Exchange (ASX:POH) and AIM - (AIM:PSG) listed pharmaceutical and nutraceutical company, today announced that it has established a Level 1 American Depository Receipt (ADR) programme in the US. The Bank of New York has been appointed as the depositary bank to administer the ADR program.

The ADRs will trade in the US over-the-counter market. Each ADR will represent 30 Phosphagenics ordinary shares. Phosphagenics ordinary shares will continue to trade on the ASX and AIM markets.

Harry Rosen, CEO of Phosphagenics, commented: "It is part of our long-term strategy to expand our presence in the US. The ADR programme will help us to increase our visibility in the US pharmaceutical and nutraceutical markets and enhance the trading options for existing and potential new investors.”

-ENDS-

About ADRs
ADRs are commonly used to facilitate the holding and trading by U.S. investors of stocks in foreign companies not listed in the US. An ADR is created when a broker purchases a company's shares on the home stock market and delivers those to the depository's local custodian bank, which then instructs the depositary bank, in this case The Bank of New York, to issue depository receipts. ADRs are traded in the same manner as ordinary shares.

About Phosphagenics Limited
Phosphagenics is a pharmaceutical and nutraceutical company with a diversified portfolio of technologies encompassing drug delivery, drug enhancement, and active ingredients for dietary supplements, functional foods and personal care products. It 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). Further information regarding Phosphagenics can be found at www.phosphagenics.com 

The Nutraceutical Division of Phosphagenics currently distributes its vitamin E-based dietary supplement product throughout the US via a licensing agreement with Zila, Inc of Phoenix, AR [NASDAQ:ZILA], who markets it under the name Ester-E. Phosphagenics also has a global distribution agreement with International Specialty Products (ISP) of Wayne, NJ to market its personal care product, Vital-ET, to the cosmetics and personal care markets. The Pharmaceutical Division of Phosphagenics has a Development Agreement with Alza Corporation of Mountain View, CA, under which Alza will fund tests to determine the feasibility of delivering a number of compounds nominated by Alza using Phosphagenics’ patented transdermal delivery system, TPM-01.

For further information please contact:

Phosphagenics Limited
Harry Rosen, Managing Director
Telephone: +61 3 9605 5900

Northbank Communications:
Emma Palmer, Rowan Minnion
Telephone: +44 (0) 20 7886 8150