Progen Anti-Cancer Drug Shows Activity in a Human Leukemia Model.

Business Editors/Health & Medical Writers

BRISBANE, Australia--(BW HealthWire)--Nov. 20, 2001

A study conducted at the University of Oslo in Norway has demonstrated the potential use of Progen Industries' (NASDAQ:PGLAF)(ASX:PGL) anti-cancer drug PI-88 to fight leukemia.

The study, to be published in the prestigious scientific journal "Leukemia," demonstrated that PI-88 caused a reduction in the number of circulating tumour cells using a mouse model of human juvenile myelomonocytic leukemia, and a rat model of human acute promyelocytic leukemia.

Vice President of Research and Development, Dr. Robert Don, said the results were exciting since this was the first report of PI-88's efficacy in a tumour of the blood.

"We were aware of the drug's activity against tumours in specific organs (solid tumours), but this study indicates that PI-88 may also be used in haematological malignancies (tumours of the blood) such as leukemia and multiple myeloma," Don said.

"We are very excited about these results because it broadens the range of cancers that PI-88 may eventually target."

Pre-clinical testing has shown the potential of PI-88 as a treatment for cancer, through its ability to both inhibit the growth of blood vessels and stop tumour cells from migrating through blood vessel walls and spreading to other parts of the body.

Progen commenced its first Phase II trial of anti-cancer drug PI-88 in human melanoma patients earlier this year at the Colorado University Health Sciences Center in the United States, and ethics committee approval was recently received for a second Phase II trial in Australia with patients suffering from multiple myeloma.

If successful, Don said the results of these Phase II trials would be used as the basis for much larger Phase III trials and potentially for commencement of combination studies with other drugs.

"The company's ultimate goal for PI-88 is to secure a strategic alliance with an appropriate pharmaceutical or biotechnology company to take PI-88's development through to Phase III trials and eventually to market," he said.

About the researcher

Professor Haakon Breien Benestad has worked in the fields of haematology, immunology, oncology and physiology for over 30 years, having over 100 publications in respected scientific journals. He has held research positions at the Norwegian Defence Research Establishment, the University of Helsinki Department of Pathology, and the Paterson Laboratories at the Christie Hospital in Manchester, and has been a Professor of Medicine at the University of Oslo Institute of Physiology since 1990.

About Progen

Progen Industries is a biotechnology company committed to the discovery, development and commercialisation of small molecule pharmaceuticals for the treatment of a variety of diseases for which there is a significant demand for new therapies.

The company's drug discovery efforts are focused on the development of potent, selective inhibitors of carbohydrate-protein interactions, which are implicated in a range of different diseases. The company has a world class facility that manufactures drug candidates under Good Manufacturing Practices (GMP) for clinical trials.

As a part of its drug discovery program, Progen Industries is creating semi-synthetic oligosaccharides (short sugar chains) and small molecule glycomimetics with anti-angiogenic, anti-metastatic and anti-thrombotic properties. The company's lead drug candidate, PI-88, is under development as a potential treatment in several disease areas.

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 United States Food and Drug Administration and the Australian Therapeutic Goods 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.