Analyst research article from (HUNTING PARTY SECURITIES,...

Analyst research article from (HUNTING PARTY SECURITIES, LTD.)
pSivida Research Report - October 2004

Page 3
Recent Developments

2004 is likely to be the breakthrough year for pSivida following the important
developments of the past few months, which have confirmed the promise alluded to in
our February 2004 research report. Since that time, pSivida has successfully completed
the acquisition of 100% of its UK subsidiary pSiMedica, (previously 46% owned).

Moreover, further patents with regard to the potential uses of BioSilicon™ have been
granted and, most importantly Phase IIa human clinical trials commenced in June 2004
with interim results due to be reported at the end of October 2004. Related to this, in
September 2003, the Company announced extremely encouraging results from Singapore
based subsidiary pSiOncology that successfully showed that its lead product 32-P -
BioSilicon™ was successful in efficacy trials on animal models bearing human tumors.
These first human trials are pivotal to the future development and perception of pSivida.

If these results on tumor regression are replicated in man coupled with satisfactory safety
data, we expect major pharmaceutical companies to seek to establish strategic
partnerships with pSivida for its BioSilicon™ technology platform, making a significant
rerating of the share price a strong likelihood.

Todays announcement:
Phase IIA BioSiliconTM trial in Man shows Safety and Tumor Regression...