Complementary U.S. Patent Granted for Progen's Lead Drug PI-88.

Business Editors/Health & Medical Writers

BRISBANE, Australia--(BW HealthWire)--Aug. 13, 2001

Progen Industries Ltd. (Nasdaq:PGLAF)(ASX:PGL) and the Australian National University (ANU) announced that the United States Patent and Trademark Office has issued to the ANU U.S. Patent No. 6,271,215, titled, "Sulfated oligosaccharides having anticoagulant/antithrombotic activity."

The patent covers the method of use of sulfated oligosaccharides, in particular Progen's lead compound PI-88, for the prevention and treatment of blood clots (anticoagulant and/or antithrombotic treatment).

"This patent adds to the protection for our lead compound PI-88. PI-88 is currently in clinical trials for cancer, and the company is reviewing the possible use of PI-88 in thrombosis and cardiovascular disease," said Lewis Lee, Progen's Managing Director.

The patent covers key research results arising from the research collaboration between Progen and Professor Chris Parish and his team at The John Curtin School of Medical Research at the ANU. Progen has an exclusive, worldwide license to this patent and other key patents, pending and issued, arising from the research collaboration.

About Progen Industries Limited

Progen is engaged in the research of carbohydrate-protein interactions as a source of potential therapeutics for a variety of disease conditions including cancer, cardiovascular disease and inflammation. Progen's objective is to develop and commercialize novel therapeutics by leveraging its expertise in pharmaceutical manufacturing processes and, through alliances with academia and research institutions, conduct proof of concept human clinical trials prior to selective out-licensing. The Company has a world class manufacturing facility that manufactures drug candidates under GMP for clinical trials.

Progen's lead compound is the sulfated oligosaccharide PI-88, which has been shown to have anti-angiogenic and anti-metastatic properties. The compound has also been shown to be a potent anti-thrombotic. PI-88 is currently in a Phase I/II trial in cancer patients under an Investigational New Drug application with the United States Food and Drug Administration and the Clinical Trial Notification Scheme (CTN) with the Australian Therapeutic Goods Administration.

This press release contains forward-looking statements that are based on current management expectations. These statements may differ materially from actual future events or results due to certain risks and uncertainties, including without limitation, risks associated with drug development and manufacture, risks inherent in the extensive regulatory approval process mandated by the Australian Therapeutic Goods Administration and the United States Food and Drug Administration, delays in obtaining the necessary approvals for clinical testing and for marketing of PI-88, patient recruitment, delays in the conduct of clinical trials of PI-88, market acceptance of PI-88 and other drugs, future capitals needs, general economic conditions, and other risks and uncertainties detailed from time to time in the Company's filings with the Australian Stock Exchange and the United States Securities and Exchange Commission. Moreover, there can be no assurance that others will not independently develop similar products or processes or design around patents owned or licensed by the Company, or that patents owned or licensed by the Company will provide meaningful protection or competitive advantages.