PGLAF Progen Industries

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, +61-7-3273-9100, or

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