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Sydney - Wednesday - August 30: (RWE Australian Business News) - Solagran Ltd (ASX code: SLA) today announced the initial results of a wide-ranging antimicrobial study conducted with Bioeffective A (Conifer Green Needle Complex) to assist the company in its negotiations with potential commercial partners.

The trial was conducted in vitro at the II Mechnikov State Medical Academy in St Petersburg and had two specific objectives:

* To understand in detail the action of Bioeffective A in relation to 28 bacteria (gram positive and gram negative; aerobic and facultative anaerobic, as well as anaerobic) and three common fungi.

* To compare its activity with a number of popular and well-established natural substances, including Echinacea (20% alcohol solution) and Tea Tree Oil (100%), plus three well-known and effective antibiotics (Doxycycline, Erythromycin and Metronidazole) and a popular anti-fungal (Amphotericin).

Directors reported three early findings that will immediately provide a basis for Solagran to expand the scope of negotiations under way with potential commercial partners. They are:

1. Bioeffective A was able to inhibit growth and reproduction of all 28 strains of bacteria and three strains of fungi tested. As a natural substance it is unique in its ability to achieve this outcome.

2. Bioeffective A demonstrated the ability to inhibit the growth and reproduction of Methicillin Resistant Staphylococcus strains, including MRSA, MRSE and MRCNS. This means Bioeffective A offers a potential solution to the large and growing infection control challenge confronting most hospitals - a world first for a natural substance. Treatment of a small number of Melbourne-based patients suffering from persistent golden staph infections also demonstrated the efficacy of Bioeffective A. In all cases, the infections were quickly overcome.

3. At the same time as inhibiting the growth and reproduction of all bacteria tested, Bioeffective A also inhibited Candida Albicans (thrush) - a fungal infection that often develops as a consequence of conventional antibiotic therapy, particularly in women.