announcment out

Avexa Chairman Letter Addresses Closure of ATC and Request for General Meeting
Dear Shareholders,
As most of you would now be aware, the Board of Avexa has resolved to cease any further development of its
lead HIV program, ATC, following the unsuccessful conclusion of partnering discussions with global
pharmaceutical companies.
On behalf of the Board and Senior Management of Avexa, I would like to express my sincere disappointment
that we were not able to secure a global licensing deal with a major pharmaceutical company for ATC. I have
spoken to a number of you over the past 48 hours and certainly appreciate the shareholder frustration. Please
bear in mind that ATC?s failure did not occur in the clinic. Development milestones were consistently met in a
timely manner and trial results posted solid data around safety and efficacy. In the end, the challenge came
down to the relationship between asset development timelines and the fluid nature of the treatment landscape.
As new combination therapies entered the market, in the view of our potential global pharmaceutical partners,
the value of ATC diminished. Although Avexa was engaged with every relevant party in the HIV market, the
Company was unable to monetize ATC and it became appropriate to close the program.
As stated in yesterday?s release (Avexa Closes Apricitabine Program, 10 May 2010 ? see over the page) the
company has taken decisive action to reduce costs and is now acutely focused on facilitating a strategic review
to identify a solution that will translate into a positive outcome for shareholders.
Prior to our announcement on ATC, this past Friday on 7 May 2010 at 5:00PM, whilst the Company?s stock
was in a trading halt, we received a notice under section 249D of the Corporations Act requesting the
convening of a general meeting of the Company. The notice requested that resolutions be put seeking my
removal as a director and Chairman of the Company and the appointment of Mr Steven Crowley and Mr Bruce
Hewett as directors of the Company. Avexa is currently assessing the notice received and will inform
shareholders of future action once it has completed that assessment.
In closing, I wanted to again express the Board?s disappointment with this unfortunate outcome for our lead
program. Our top priority moving forward is to preserve capital while the Board completes its strategic
review, with a focus on restoring value for our shareholders.
Yours sincerely,
Nathan Drona
Chairman