acquires manufacturing facility from shreya biotec, page-2

SCIGEN ACQUIRES MANUFACTURING FACILITY FROM SHREYA BIOTECH

Singapore and Australia. Wednesday 5th January 2006. SciGen Limited (ASX:SIE) has
executed a memorandum of understanding with Shreya Biotech to acquire its biological
manufacturing facility in India for an undisclosed amount.

Shreya Biotech, a member of the Shreya Group of Companies, was previously SciGen’s Contract Manufacturer for its biotechnology derived products and was is in the process of completing a state of the art biological manufacturing facility located at the International Biotech Park in Pune, India. This facility was designed to meet GMP (Good Manufacturing Practices) and is expected to be approved by the US Food & Drug Administration (FDA) and the EMEA in Europe.

The facility will have sufficient capacity to meet the needs of SciGen and its partners well into the next decade. It will also provide Contract Manufacturing for other Biotechnology companies. The acquisition is expected to be completed by 31 May 2006 and is subject to the fulfillment of condition precedent, which includes obtaining the consent of various agencies and the transfer of permits if required.

The manufacturing facility in Israel will serve as a back-up to the Indian facility for the mammalian cell derived products, carry out process development and supply the vaccine for Western Europe, the United States and Canada.

In its initial phase the Chinese facility will be formulating, filling and packaging the products for the Chinese market.

The acquisition of the Indian manufacturing facility will result in SciGen becoming a fully
integrated Multi-National biotechnology company capable of managing the entire process from development to manufacturing and marketing of its portfolio of products.