Eiffel Meets First Milestone on Development AgreementEiffel...

Eiffel Meets First Milestone on Development Agreement

Eiffel Technologies Limited (ASX: EIF) announce today that it has met the first project milestone of a collaborative development agreement previously announced on 22 November 2004. Achievement of this milestone has triggered a milestone payment of $US50,000 bringing the total revenue for the project thus far to $US200,000.

Eiffel has established the feasibility of applying its technology to the production of a particulate preparation with physical properties that may bring about measurable benefits to product performance and stability.
Following on from this first stage success, the focus of the project will now shift to development of the process, and further product formulation, in order to achieve readiness to support potential clinical trials.
Eiffel also announces today that it has completed a second feasibility study previously announced on 28 February 2005. The results of the study partially met technical objectives, and have led to further discussions with the client about other ways in which the technology can be applied to the compound.
In addition to these developments, and as part of the cost reduction program announced in February 2005, cost base reductions of over 40% are expected to be achieved from July 2005, when compared to actual costs at the half year ended 31 December 2004. Furthermore, in accordance with the business’ previously stated need for additional capital the Board is currently assessing the Company’s funding requirements in the context of ongoing collaborations, research and development requirements and potential future partnerships.