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Phosphagenics to Commence Phase 1b Transdermal Insulin Clinical,Trial in Second Quarter

rovide diabetics with a non-invasive and effective treatment, and we look forward to its continued development."

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. 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). 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 http://www.phosphagenics.com

CONTACT: Company - Dr. Esra Ogru, Executive Vice President Research &Development, Phosphagenics Limited, +61-3-9605-5900, or Mr. Harry Rosen,President and CEO, Phosphagenics Limited, +61-3-9605-5900; or U.S. Investorand Media - Brian Ritchie or Evan Smith, both of FD, +1-212-850-5600

Web site: http://www.phosphagenics.com/

Ticker Symbol: (NASDAQ-OTCBB:PPGNY)

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