quote from announcement: "With these new agreements, pSivida...

quote from announcement: "With these new agreements, pSivida Limited now has evaluation agreements with three of the five largest pharmaceutical companies in the world."

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ASX/MEDIA RELEASE 5 January 2006

Several new pharma drug delivery evaluation agreements for US subsidiary

Global bio-nanotech company pSivida Limited (ASX:PSD, NASDAQ:PSDV, Xetra:PSI) is pleased to announce that its wholly owned subsidiary pSivida Inc. (formerly Control Delivery Systems, Inc.) has recently entered into a number of new evaluation agreements
with various companies including large global pharmaceutical companies, to evaluate pSivida’s proprietary platform technology for their developmental compounds.

The terms of the new evaluation agreements vary, but are typically 12 months in duration with the costs being borne by the counterparty. With these new agreements, pSivida Limited now has evaluation agreements with three of the five largest pharmaceutical companies in the world.

In December 2005, pSivida completed the acquisition of Control Delivery Systems, a private US drug delivery company located in the Boston, Massachusetts area. Control Delivery Systems in collaboration with Alimera Sciences initiated a Phase III clinical trial in October 2005 to study diabetic macular edema (DME) patients treated using its Medidur™ platform technology to deliver fluocinolone acetonide. DME is the leading cause of vision loss for Americans under the age of 65 with approximately 500,000 treatable cases in the US alone. Medidur™ for DME is an injectable, non-erodible intravitreal device that is administered in an office procedure as opposed to a surgical procedure. This implant is designed to release a constant amount of drug to the back of the eye for a duration of between 18 months and 3 years.

Medidur™ is the next generation product to RetisertTM which is administered in a surgical procedure and licensed to Bausch & Lomb for the treatment of chronic, non-infectious uveitis, a sight threatening inflammatory eye disease affecting approximately 175,000 people in the US. RetisertTM is the only FDA approved back of the eye treatment for uveitis. Bausch & Lomb told investors and analysts in December 2005 that they believe the future for RetisertTM is bright.

“We believe these new evaluation agreements come at a time when the ophthalmology market is growing strongly and are a reflection of growing interest in pSivida's technologies,” said Mr Gavin Rezos, MD and CEO of pSivida Limited. “We expect to enter into further agreements for pSivida’s drug delivery products in 2006.”