proof of concept announcement

Those interested in biotechs might like to note today's announcement by PXL, here verbatim:

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Sydney, [Australia] September 7 2006 – Proteome Systems [ASX:PXL] today announced that it has
demonstrated “proof of concept” for its TB diagnostic test.

The company is on track for the development of
a prototype test for clinical evaluation in the field by end Q1 2007. With these latest results, the Company
has also achieved the final Milestone under its current agreement with The Foundation for Innovative New
Diagnostics (FIND, Geneva).

PXL has tested antibodies against one of its patented TB protein markers in a diagnostic test format that is
typically used in clinical settings. In a proof of concept study involving 16 TB+ and TB+/HIV+ samples and
16 non-TB samples, the test performed at >80% sensitivity and >90% specificity. These initial results show that this test is more accurate and faster in detecting TB than current methods of smear and culture tests. Additional antibodies to other biomarkers will be screened using a larger sample set to enhance sensitivity of detection.

Having demonstrated feasibility of its test, the company is now focused on further refining the test by
determining the best antibodies for inclusion in the test and to detect TB in a broader clinical setting across
a range of geographies. This will include adapting the test protocol to process samples in the field, to
detect multiple strains of TB from different geographical locations and from communities where there is a
heavy burden of HIV/AIDS.

Jenny Harry, Head of Diagnostics at Proteome Systems, said “our novel approach to target the actual TB
proteins found in people with TB and HIV co-infection has been validated through this proof of concept
study. All the groundwork has now been laid for the development of a robust diagnostic test and we expect
to have a prototype test ready for clinical evaluation by end Q1 2007”.

Stephen Porges, Chief Executive Officer of Proteome Systems added “Current tests for identifying what is
arguably the world's most important microbial pathogen are inadequate. Despite significant research efforts around the world, the diagnostic test for Active TB is still much as it was 100 years ago. As recently
as yesterday the World Health Organisation called an urgent meeting to seek ways of dealing with new
and deadly strains of TB. What is urgently needed is an accurate and rapid diagnostic test for active TB
and drugs to treat the new multi drug resistant strains. Many patients are now dying from TB before they
can even be diagnosed using the current diagnostic and treatment regime.

In light of this situation we are
very pleased and excited by the results and look forward to a potential fast tracking of this programme”

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Unloved sector, but a nice prospect imho.

Cheers,

M2

I hold.