aion/product pipeline/commences preclinical trials

ASX/MEDIA RELEASE
December 6, 2005

AION Diagnostics Develops Product Pipeline and Commences Preclinical Trials

Perth, Australia – December 6, 2005 – AION Diagnostics Ltd (AION) today announced that it has developed plans for 15 different potential products, as well as commencing preclinical trials on products in the areas of Imaging and BioSensors. The first of these products is expected to be marketed in 2008.
AION has already started discussions with the U.S. Food and Drug Administration (FDA).

AION has also moved its primary place of incorporation to the U.S, the world’s largest healthcare and financial market, while creating a new Australian subsidiary. AION Diagnostics Inc. is a wholly owned subsidiary of global bionanotech company, pSivida Limited (ASX:PSD, NASDAQ:PSDV, Xetra:PSI) and owns the rights to commercialize diagnostics applications of pSivida’s intellectual property for human and animal healthcare.

“AION has come a long way since being spun out of pSivida in September 2004,” said AION Managing Director Dr Anna Kluczewska. “We’ve discovered, proved and patented the use of BioSilicon™ in medical imaging. We believe this technology represents a milestone in preventative medicine, enabling improved diagnosis before disease impacts the body, rather than after.”

AION is focused on the development of products that facilitate accurate and immediate diagnosis, at the early pre-symptomatic stage. Pre-symptomatic detection is a significant advance in the diagnostic sector and will also significantly impact the therapeutics sector as early correct diagnosis of disease will alter the course of disease and the resultant demand for therapeutics. AION has targeted markets where there is a strong patient, provider and government need for early diagnosis that results in the opportunity to save lives and reduce the financial burden on the healthcare system.

pSivida shareholders will receive an entitlement and distribution of AION shares in any public listing.