signs with partner for italy and mou in usa

COLLTECH AUSTRALIA LIMITED (ASX CODE: CAU)

EICO NOVACHEM OF ITALY TO MARKET AND SELL OVINE COLLAGEN CAU SIGN MOU WITH BIOALLIANCE LLC, OHIO USA

• CAU signs a LETTER OF INTENT with Eico Novachem of Italy a distributor of chemical raw materials

• CAU signs MOU with BioAlliance to assist CollTech in distributing CollTech’s existing products in Northern America, developing medical grade products, complying with FDA requirements and launch of CollTech’s Research grade collagen.

CollTech is pleased to announce the finalisation of a LETTER OF INTENT (‘LOI’) with Eico Novachem of Italy (www.eiconovachem.it). The LOI will see CollTech’s unique sheep sourced collagen being marketed and sold in Italy and represents the third such agreement into the lucrative European markets.

Italy is one of the major cosmetic and toiletries markets in Europe, valued at USD12.9 billion with 14% market share of Western Europe. Eico Novachem already have identified market opportunities for CollTech’s cosmetic grade ovine collagen.

CollTech’s General Manager Dr. Deborah Cooper said “Eico Novachem are an established distributor in Italy supplying product to cosmetic manufacturers and is expected to open some of these doors in Italy for us.

BioAlliance has expertise in the development of biomaterials for advanced medical applications and has the connections and capacity to fast-track ovine collagen into the biomedical arena.

Sales Director Glenn Smith commented that establishing a relationship with BioAlliance was key to the imminent release of OVICOLL®|R – CollTech’s Research grade ovine collagen. More importantly it establishes a relationship within the USA whilst the company finalises development of the high margin Medical grade collagen during 2008.

The LOI and MOU provide for the parties to finalise negotiations towards full distribution agreements whilst commencing initial marketing activities.