Phospha E Update

RNS Number:3308Q
Phosphagenics Limited
18 March 2008



18 March 2008


Company Announcement


                  GRAS status opens door to U.S. food industry


Phosphagenics Limited ("Phosphagenics") (ASX: POH, AIM: PSG, OTCQX: PPGNY) today
announced that an independent panel ("the panel") of food safety experts
unanimously concluded that Phosphagenics' patented Phospha E(R) is Generally
Recognized As Safe (GRAS).  This comes as a result of the panel critically
evaluating data and information pertinent to the use of Phospha E(R) in
breakfast cereals, juice beverages and table fats.



Phospha E(R) is a patented derivative of vitamin E with superior qualities, such
as greater absorption and activity.  In pre-clinical studies, Phospha E(R), when
given orally, has been shown to lower blood cholesterol and triglyceride levels,
inhibit the formation of arterial plaques and suppress the main inflammatory
pathways involved in metabolic syndrome (a condition which markedly increases
the risk of heart attacks, strokes and diabetes).



The Company is preparing a GRAS notification to inform the U.S. Food and Drug
Administration ("FDA") of the expert panel's conclusion that Phosphagenics'
Phospha E(R) is GRAS. If the FDA has no further comment, GRAS designation allows
manufacturers to produce and sell foods that include Phospha E(R) in the U.S.
food industry.



"GRAS status extends the permitted use of Phospha E(R) beyond the nutritional
supplement market and into the substantial U.S. food industry, and represents a
tremendous commercial opportunity for Phosphagenics," said Harry Rosen,
Phosphagenics' President and CEO.









Ends...






APPENDIX AND NOTES TO EDITORS



About GRAS

Generally Recognized as Safe (GRAS) is an FDA designation that a chemical or
substance added to food is considered safe by experts, and so is exempted from
the usual Federal Food, Drug, and Cosmetic Act (FFDCA) food additive tolerance
requirements.





GRAS exemptions are granted for substances that are generally recognized, among
experts qualified by scientific training and experience to evaluate their
safety, as having been adequately shown through scientific procedures (or, in
the case of a substance used in food prior to January 1, 1958, through either
scientific procedures or through experience based on common use in food) to be
safe under the conditions of their intended use.



The substance must be shown to be "generally recognized" as safe under the
conditions of its intended use.  The proponent of the exemption has the burden
of proving that the use of the substance is "generally recognized" as safe.  To
establish such recognition, the proponent must show that there is a consensus of
expert opinion regarding the safety of the use of the substance.





About Phosphagenics Limited

Phosphagenics is a Melbourne-based, globally driven biotechnology company
focused on the discovery of new and cost effective ways to enhance the
bioavailability, activity, safety and delivery of proven pharmaceutical and
nutraceutical products.



Phosphagenics' core technology is built around the science and application of
phosphorylation, a process where the addition of a phosphate group has been
found to enhance the bioavailability, activity and safety of existing
pharmaceuticals and nutraceuticals, as well as to assist in the production of
drug delivery platforms.



Phosphagenics' shares are listed on the Australian Stock Exchange (POH) and the
London Stock Exchange's Alternative Investment Market (PSG). An ADR - Level 1
program was established in the U.S. with The Bank of New York Mellon (PPGNY) for
U.S. investors to trade in Phosphagenics' stock on the 'over-the-counter'
market. In July 2007, this was upgraded to the International OTCQX, a new
premium market tier in the U.S. for international exchange-listed companies,
operated by Pink Sheets, LLC.



For more information, please visit Phosphagenics' web site at
www.phosphagenics.com



Safe Harbor Statement

This press release contains forward-looking statements based on current
expectations of future events. If underlying assumptions prove inaccurate or
unknown risks or uncertainties materialise, actual results could vary materially
from the Phosphagenics' expectations and projections. Risks and uncertainties
include general industry conditions and competition; economic conditions, such
as interest rate and currency exchange rate fluctuations; technological advances
and patents attained by competitors; challenges inherent in new product
development, including obtaining regulatory approvals; domestic and foreign
health care reforms and governmental laws and regulations.





Company Contact Details:                  U.S. Investor and Media Contacts:
Harry Rosen                               Brian Ritchie

Phosphagenics Limited                     Financial Dynamics
President and CEO                         [phone]
[phone]

Mary McSwiggan
Phosphagenics Limited
Investor Relations Manager
[phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

MSCSFMSAASASEID