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Australian healthcare company Prima Biomed Ltd (ASX: PRR) (Prima) is pleased to announce plans for a capital raising (Capital Raising) to raise gross proceeds of approximately $38 million, with the ability to accept applications in excess of that amount, to provide funding for its late stage trials of the CVacTM immunotherapy ovarian cancer vaccine1.

The Capital Raising may, depending on the outcome of the placement, consist of:

* A Placement to institutional and sophisticated investors of approximately 64.3 million fully paid ordinary shares at $0.28 per share, to raise approximately $18 million before costs, with the ability to accept applications in excess of that amount; and

* A subsequent offer to existing eligible shareholders of up to $15,000 of shares per eligible shareholder under a Share Purchase Plan (SPP) to raise approximately $20 million before costs, with the ability to accept applications in excess of that amount.

The issue price under the Placement represents an 18.8% discount to the adjusted volume weighted average price for the five day period up to and including Tuesday 24 May 2011.

The SPP issue price will be the same as the price of the new ordinary shares issued under the Placement.

Funds raised under the Capital Raising will be used by the Company for its ongoing testing and development of the CVacTM immunotherapy ovarian cancer vaccine1, including its Phase III clinical trials, and also to provide working capital for the Company.

The Capital Raising will not require shareholder approval.