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Cytopia and Other Progen Shareholders Maintain Call for Meeting
Date:2/8/2009

The board has also confirmed that Progen would bring $70 million of cash, pre share buyback, to the Avexa merger, which should be sufficient to fund the offer of a full access buyback of $1.10 per share to all shareholders.

It is the view of Cytopia that all Progen shareholders should vote against the proposed merger with Avexa and demand the additional choices being sought under the meeting requisition notice.

Shareholders retaining their Progen interest

Cytopia believes a considerable number of Progen shareholders would elect to remain as investors in Progen if able to vote on the choice resolutions. Under the stewardship of a completely new board that is likely to be more receptive to carrying out the strategic recommendations outlined by the company on 13 November 2008, it would provide the opportunity to recover some of the value that may have been lost over recent years.

Assuming the choice resolutions are passed, and once the remaining number of shareholders has been determined, Cytopia intends to present the new Progen board with a compelling proposition to consolidate the two drug development companies and deliver a leading Australian cancer focused biotechnology company that has the full support of both shareholder bases.

    Enquiries:
    Mr. Andrew Macdonald                       Mr. Rudi Michelson
    Chief Executive Officer                    Monsoon Communications
    T: +61 3 9208 4232                         T: +61 3 9620 3333
    E: andrew.macdonald@cytopia.com.au         E: rudim@monsoon.com.au

About Cytopia

Cytopia Ltd is an Australian biotechnology company discovering and developing new drugs to treat cancer and other diseases. Cytopia conducts its research and drug development through subsidi
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SOURCE Cytopia Ltd.
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