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Nestle Nutrition and Phosphagenics to Commence Phospha E(R) Phase 2 Clinical Trial
Date:10/4/2007

f proven pharmaceutical and nutraceutical products. The Company's 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). In March 2006, an ADR - Level 1 program was established in the U.S. with The Bank of New York Mellon (PPGNY) for U.S. investors to trade in Phosphagenics' stock on the 'over-the-counter' market. This has now been upgraded to the International OTCQX, a new premium market tier in the US for international exchange-listed companies, operated by Pink Sheets, LLC.

For more information and to view the clinical trial results in full, please visit Phosphagenics' web site at http://www.phosphagenics.com

About Nestle Nutrition

Nestle Nutrition is an autonomous business within the Nestle group managing and developing the group's specialty nutrition brands. Through science-based nutrition products and services, Nestle Nutrition helps enhance the quality of people's lives by supporting health and providing care for specific consumer groups with special nutrition needs at every stage of life.

About 22,000 employees in more than 70 markets are part of Nestle Nutrition. Its product portfolio - covering infant nutrition, healthcare nutrition, performance nutrition and weight management - includes such trusted and well-recognized brands as: NAN, GERBER, LACTOGEN, NESLAC, CERELAC, BOOST, NUTREN, PEPTAMEN, RESOURCE, OPTIFAST, POWERBAR, MUSASHI and JENNY CRAIG. More information at: http://www.nestlenutrition.com.

About the Phosphagenic
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