merial deal, page-3

IMU has demonstrated in a
trial of 900 chickens a 14% increase in weight gain. This
supersedes any commercially available growth enhancers.
The IMU poultry enhancer could be a very successful
product but unfortunately Merial will take most of the
upside from IMU's development work. Shareholders have
effectively paid for the research and development in return
for a comparatively small royalty payment. IMU has a
number of new compounds under development that
sound very promising but to date have not been
significantly trialled. IMU seems confident of having a
number of commercial products in the market for CY06.
We suggest short term holders to invest in other stocks
while long term speculative investors should hold.