Asia PR News

BRISBANE, Sept. 28/ MediaNet International-AsiaNet/ –

Alchemia Limited (ASX: ACL) wishes to advise that it has today agreed in
principle with Abraxis Pharmaceutical Products (APP) to terminate its Research
and Development Collaboration Agreement, effective 90 days from today.

APP has agreed to return to Alchemia the heparin material in its possession
and provide other project related data. Alchemia has agreed to repay the
$US1.25million convertible loan from APP, made in respect of process
development.

The termination is subject to the execution of a suitable legal release
document.

Alchemia CEO, Dr Tracie Ramsdale said the termination of the APP agreement
now allowed Alchemia to proceed with the US Regulatory filing (ANDA) in its
own right and to seek an alternative marketing partner for the North American
market.

“It is anticipated that the ANDA could be filed by the end of second quarter
2007. The cost for this filing is relatively minor and Alchemia will proceed
with this in its own right to expedite the time to market”, said Dr Ramsdale.

Alchemia is confident of securing a new marketing partner on attractive
terms, said Dr Ramsdale. “The project is now at the low risk stage following
the highly successful completion of the pilot scale manufacture at Dow earlier
this year”.

Dr Ramsdale said the company is fully committed to the Synthetic Heparin
program (a generic version of Arixtra®) and the market potential of its product.

Arixtra® sales in the US have demonstrated an average quarterly growth of
20% over the last year. US sales for the first half of the 2006 calendar year
(US$31m) were equivalent to sales for the full 2005 calendar year (US$36m).

ENDS

Further information:

Dr Tracie Ramsdale
Chief Executive Officer
Alchemia Limited
Tel: +61 7 3340 0200

Released through and media enquiries:

Ms Stephanie Paul
Managing Director
Phillips Group
Tel: +61 7 3230 5000
Mobile: +61418 753 062

NOTE:
* Sales data for Arixtra® obtained from IMS Health.

SOURCE: Alchemia Limited