EPITAN ACQUIRES THREE DERMATOLOGY PRODUCTS.

EpiTan Limited [ASX: EPT], Melbourne, Australia, has acquired three products as part of its strategy to establish a specialty pharmaceutical business focused on dermatology.

Two of the products, LinotarR and ExorexR, are already registered and generating sales in Australia and the third, ZindaclinR, has been submitted to the TGA for registration.

Linotar, for the treatment of eczema, and Exorex, for the treatment of psoriasis, were acquired from TransDermal Pharmaceuticals Australia Pty Limited. Zindaclin, a unique, once-a-day clindamycin-based gel for the treatment of acne, has been in-licensed from UK based Strakan Pharmaceuticals. Financial terms of the acquisitions are confidential.

Linotar and Exorex have significant potential for growth in a market currently valued at more than A$10 million. The size of the anti-acne market in Australia for Zindaclin is estimated to be worth approximately A$12 million.

"These acquisitions will help launch EpiTan's dermatology sales and marketing operation effective as of July 2004, and we expect sales revenues to exceed A$3 million in 2005/06," said Dr Wayne Millen, EpiTan's executive chairman and CEO. "Other acquisitions and in-licensing product opportunities are also being actively pursued to provide future growth in sales. We are confident the primary driver for future growth will be our leading drug candidate, Melanotan, which is on track to be launched in late 2006 or early 2007."

Current independent estimates of Melanotan's sales for Australia and New Zealand alone are expected to reach in excess of A$50 million in the first two years, which underpins very strong growth prospects for EpiTan over the next five years.

Chris Rossidis, manager pharmaceutical products, said, "EpiTan is exploiting a unique opportunity to develop the only listed pharmaceutical company in Australia with a focus on niche prescription dermatology products."

About EpiTan Limited

Melbourne-based pharmaceutical company EpiTan Limited has the worldwide rights to develop Melanotan which stimulates the body to make melanin. Melanin, which causes a tan, is known to protect the body from skin damage as a result of sunburn, a known prime cause of skin cancer. Simply, Melanotan induces a protective tan without the need to expose skin to harmful levels of UV radiation.

EpiTan completed a Phase IIb clinical trial in 2003 which demonstrated that Melanotan increases melanin content in the skin by up to 100% and reduces sunburn injury by up to 50% in fair-skinned volunteers. This represents a significant breakthrough for people most at risk of sunburn injury and skin cancer. Melanotan will shortly undergo clinical studies in Europe to assess its potential as a therapy for UV-associated skin disorders such as polymorphous light eruption (PMLE).

Melanotan will likely be administered by a user-friendly and biodegradable sustained-release implant, administered by injection. Transdermal formulations, such as a lotion, spray and patch are also being developed.

The global dermatology market is estimated at US$2.5bn and the solarium market is worth in excess of US$5bn in the US alone.

For more information, visit http://www.epitan.com.au.