ASX ANNOUNCEMENT / MEDIA RELEASEANTEO DIAGNOSTICS LIMITED...

ASX ANNOUNCEMENT / MEDIA RELEASE
ANTEO DIAGNOSTICS LIMITED ANNOUNCES AGREED TERMS WITH MERCK

Key Points:
agreed on the terms of a four year supply agreement with Merck Chimie SAS to manufacture two new beadpackage and sell.
New Product launch is anticipated within the next two months.
Further validates Mix&Go TM technology. The immediate financial returns are not expected to be material, but recurring revenues are expected over the medium to long term.

Background:
Merck
AUD$11.2 billion Merck Group which has operations in 64 countries. The formal agreement expected to be signed this week. This signifies another step toward the successful commercialisation of Mix&Go TM technology by the Company. Merck instigated an extensive review and testing, by external reference laboratories, of the Mix&Go TM technology and now wish to formalise a commercial relationship.

Under the terms Anteo will be required to manufacture and deliver the New Products to Merck. Launch of the New Products is expected in July/August 2010. Merck will be responsible for the sales and distribution of the New Products which will be launched in the BioEstapor product line. Initial sales within the first 6 months are expected to be minimal as Merck focuses on assessing the market for the New Products within their existing customer base and distribution network. Similarly to the Licensing Agreement entered into with Bangs, these minimal initial revenue streams are consistent with a typical sales cycle associated with selling new technologies
such as Mix&Go TM into these markets. The agreed terms do not require Merck to provide forecast product requirements until 2012 after which 12 month rolling forecasts are to be provided.

Anteo CEO, Dr Geoff Cumming, This is further validation by another industry leader of the benefits of our Mix&Go TM technology. It is extremely encouraging that such a prestigious company has, after extensive testing, chosen to use our technology. The Company hopes that this will lead to recurring revenues in the medium term, once Merck has established a market for the New Products

As previously announced, Anteo continues to be in discussions, and is working collaboratively, with several other interested companies and major industry participants. Major companies do not enter into Materials Transfer Agreements ( MTAs ) lightly due to the strict obligations imposed on the signatories. Anteo currently has ten (10) MTAs on foot and is optimistic that a portion of these will result in additional agreements. The Company is
actively working towards the commercialisation of its Mix&Go TM technology in the global objectives, the Company will devote increasing attention to
alternative markets for the Mix&Go TM technology, including Point of Care applications, biological separations and a range of nonbiological markets