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Update on Progression of Phosphagenics and Nestle Nutrition's Phospha E(R) Trial
Date:2/11/2008

MELBOURNE, Australia, Feb. 11 /PRNewswire-FirstCall/ -- Phosphagenics Limited ("Phosphagenics") (ASX: POH; AIM: PSG; OTCQX: PPGNY) and Nestle Nutrition (Nestle) today announced that their joint phase 2 human clinical trial to establish the efficacy of Phosphagenics' Phospha E(R) in the management of metabolic syndrome is advancing at three sites in Adelaide, Australia.

Based on current recruitment rates of study participants, the double-blind phase 2 trial, which is fully funded by Nestle, is expected to be completed in mid-2008.

This phase 2 clinical trial follows two pre-clinical dose response trials completed by Nestle and Phosphagenics in 2006. The results of those studies confirmed that, when given orally, Phospha E(R) significantly reduces many of the key biomarkers associated with metabolic syndrome.

Metabolic syndrome is characterized by a group of risk factors that increase the risk of diabetes, coronary heart disease and other diseases associated with plaque build up in artery walls.

The companies have agreed on the principal terms of a commercialization agreement, which will grant a worldwide exclusive license to Nestle for the use of Phospha E(R) in medical foods and for Phosphagenics to be the exclusive manufacturer and supplier of Phospha E(R) to Nestle. The final commercial agreement is due to be signed upon completion of the phase 2 trial.

Harry Rosen, President & CEO of Phosphagenics said: "We believe the agreed terms will deliver value to all parties and we look forward to building on the already strong relationship we have with Nestle, the world's largest food company."

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 t
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SOURCE Phosphagenics Limited
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