Progen Reports Solid Financial Performance

Progen Reports Solid Financial Performance 


BRISBANE, Australia, Aug. 26  /PRNewswire-FirstCall/ -- Progen Industries
Limited (NASDAQ:PGLAFNASDAQ:ASX:NASDAQ:PGL), a progressive Australian cancer
drug development company, lodged its Appendix 4E preliminary final report to
June 30th, 2004.

The Company completed the financial year with a solid financial performance
reflecting concerted capital and resource management and a cash/cash equivalent
balance totalling $14.3 million, up from $12.0 million last year. The increase
in cash reserves was made possible by a private placement in November 2003 and
the subsequent ongoing exercise of shareholder and employee options following
strong share price performance. The proceeds from the divesture of the Life
Science Division in November 2003 also contributed to the cash balance.

Excluding the increase in demand for PI-88 manufacture for clinical trials,
contract manufacturing revenue has grown 8.6% year on year. Gross margin as a
percentage of revenue doubled from 15.4% to 31.4% primarily due the more
efficient use of labour resources. However, revenue growth from contract
manufacturing going forward maybe mitigated somewhat due to the expected
increase in PI-88 production requirements for the foreseeable future as both
the Company and Medigen expand recruitment into respective PI-88 clinical
trials.

Progen's Managing Director, Lewis Lee commented "Whilst the company is pleased
to report a regulated cash burn of $5.3 million, which has allowed us to finish
the financial year with a solid cash position, it is recognized that strategic
company growth will require continued diligent application of capital. The
contract manufacturing division is to be commended for their stand-alone
contribution, again increasing revenue and profit margins while accommodating
the increased demand for PI-88 production requirements.

"Several major milestones have been reached in our PI-88 clinical development
program, including the successful completion of two Phase I trials and one
Phase II trial and the launch of three new Phase II trials covering 20 medical
centres across three countries. Expectations are high, as we hone our focus on
the recruitment into the PI-88 Phase II clinical program in parallel with a
PI-88 partnership drive. In addition, we are actively screening for potential
new in licensing candidates in order to bolster the clinical pipeline, in
tandem with in house drug discovery efforts to develop future clinical
candidates, thereby setting the company up for the next stage of growth." 

DATASOURCE: Progen Industries



CONTACT: Sarah Meibusch of Progen Industries, [phone], or

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