progress on fda approval

ASX ANNOUNCEMENT

CELLESTIS LIMITED (CST)

8 OCTOBER 2004

Progress on FDA Approval

Previous statements by the Company have indicated that a response for Federal

Drug Administration (FDA) approval of QuantiFERON-TB Gold may have been

expected by October, 2004. Consequently the Company is updating the

shareholders on the FDA situation.

At this time the Company has answered all questions posed to date by the FDA and

we have no outstanding queries. These queries from the FDA have included

questions on clinical trials and suggested modifications to our Product literature,

which provide test use instructions, indications for use, and clinical information. All

FDA questions and suggestions have been answered or incorporated in Company

literature. We are advised to expect further communication from the FDA within the

next two weeks.