Alchemia Approaching Several Key Milestones in 2008.

BRISBANE, Australia -- Alchemia Limited ("the Company") (ASX:ACL) today announced its half year results for the six months ended 31 December 2007.

Dr Peter Smith, Alchemia's Chief Executive Officer and Managing Director, today set out the significant progress the Company had made over the reporting period to advance and de-risk the Company's drug discovery and delivery platforms, through the completion of a number of highly important initiatives and milestones. The major highlights for the period include:

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About Alchemia Limited - www.alchemia.com.au

Alchemia is a drug discovery and development Company founded on its chemistry expertise. The Company's lead program is fondaparinux (synthetic heparin, a generic version of GlaxoSmithKline's Arixtra([R])) which will generate near term revenues and was recently partnered with Dr Reddy's Laboratories Inc. for the US market. Alchemia's pipeline of assets is built on two platform technologies: HyACT([R]) (targeted cancer delivery) and VAST(TM) (drug discovery). HA-irinotecan, for the treatment of colorectal cancer, recently achieved positive Phase II clinical trial results.

Arixtra([R]) is a registered trademark of GlaxoSmithKline. VAST(TM) and HyACT([R]) are trademarks of Alchemia and Alchemia Oncology.