Half Year Report - Progen on Track to Meet Milestones Further Encouragement for PI-88 from Avastin's Approval BRISBANE, Australia, Feb. 27 /PRNewswire-FirstCall/ -- Progen Industries Limited , a progressive Australian drug development company, todayannounced its half year financial results to December 31st, 2003 and said the company is on track to meet its objectives for 2004. Progen's operating loss for the half-year ending 31 December 2003 was $1,895,201. "This is a good result when compared to the loss of $4,213,824 in 2002," Progen's Chief Financial Officer, Milton McColl commented. "This was largely attributable to the profit, $929,999 made from the divesture of the Life Sciences business unit, a transaction that enabled Progen to sharpenits cancer drug development focus. In addition, the result was due to Medigen Biotechnology Corporation's profit of $183,910 when equity accounted. This was caused by the increase in Medigen's revenues and an increase in the share price of their investment." The following schedule summarises the results for the half-year ending 31 December 2003. 2003 2002 $'000 $'000 Revenue from commercial services sales 2,470 2,326 Revenue from other operating activities 705 705 Revenue from sale of discontinued operation 1,175 -- Total Revenue 4,350 3,031 Operating profit (loss) before research and development (76) (503) Research and development expenditure (2,003) (2,824) Operating profit (loss) after research and development (2,079) (3,327) Share of equity profit (loss) in associate entity 184 (887) Operating loss (1,895) (4,214) Net Tangible Assets 17,767 14,399 Net Assets per share (cents) 52.0 59.0 Cash on hand 14,974 8,348 Today also marks an important milestone in Progen's field of research. Genentech, Inc. announced today that the U.S. Food and Drug Administration (FDA) has approved Avastin(TM) (bevacizumab), a Vascular Endothelial Growth Factor (VEGF) inhibitor, to be used in combination with chemotherapy as a treatment for patients with metastatic cancer of the colon or rectum. StephenChang, Progen's Chairman commented, "This is outstanding progress for the anti-angiogenesis research area and helps build our confidence in our Phase II compound, PI-88. PI-88 is small-molecule-based and rather than relying on a single mode of action to induce an anticancer response, it inhibits blood vessel growth, or angiogenesis via multiple growth factors including Fibroblast Growth Factors (FGFs) and VEGF, as well as inhibiting other angiogenic agents, including heparanase." Bolstered by this positive announcement in the angiogenesis research area, the main focus for the company in the calendar year 2004 will be to continue to develop a robust clinical dataset for the lead anti-cancer compound PI-88 and continue the ongoing partnering initiative. Stephen Chang, commented, "In the past six months PI-88 has certainly moved forward its clinical development. Signs of efficacy and a good safety profile have emerged from the clinical program with some patients continuing to receive PI-88 for periods lasting up to 30 months. Two new Phase II trials have commenced just recently for patients with advanced melanoma and non-small cell lung cancer, respectively, and our centers are actively recruiting patients across Australia and the US. We are veryexcited by the next 12 months and beyond." DATASOURCE: Progen Industries CONTACT: Sarah Meibusch of Progen Industries, +61-7-3273-9100, or

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