pSivida Appoints Non-Executive Director to Audit Committee

BOSTON & PERTH, Australia--(BUSINESS WIRE)--Global bio-nanotech company pSivida Limited (NASDAQ:PSDV)(ASX:PSD)(Xetra:PSI) today announced the appointment of Stephen Lake to the Companys audit committee effective as of September 20, 2006. Mr. Lake has been a member of the Companys board of directors since July 30, 2004.

This appointment was made on the same day as and prior to the Companys receipt of a Nasdaq Staff Deficiency Letter indicating that, as a result of the recent resignation of Heather Zampatti from the Companys board of directors and audit committee, the Company was not in compliance with the requirements of Marketplace Rule 4350. That rule mandates, among other things, that the Company maintain an audit committee comprised of not fewer than three independent directors.

As a result of Mr. Lakes appointment to the audit committee, the company is in compliance with Marketplace Rule 4350, and the Company has received a compliance letter from Nasdaq acknowledging that fact.


pSivida is a global bio-nanotech company committed to the biomedical sector and the development of drug delivery products. Retisert is FDA approved for the treatment of uveitis. Vitrasert® is FDA approved for the treatment of AIDS-related CMV Retinitis. Bausch & Lomb own the trademarks Vitrasert® and Retisert. pSivida has licensed the technologies underlying both of these products to Bausch & Lomb. The technology underlying Medidur, a treatment for diabetic macular edema, is licensed to Alimera Sciences and is in Phase III clinical trials.

pSivida owns the rights to develop and commercialize a modified form of silicon (porosified or nano-structured silicon) known as BioSilicon, which has applications in drug delivery, wound healing, orthopedics, and tissue engineering. pSividas subsidiary, AION Diagnostics Limited is developing diagnostic products and the subsidiary pSiNutria is developing food technology products both using BioSilicon.

pSividas intellectual property portfolio consists of 70 patent families, 74 granted patents and over 290 patent applications. pSivida conducts its operations from offices and facilities near Boston in the United States, Malvern in the United Kingdom, Perth in Australia and Singapore.

pSivida is listed on NASDAQ (PSDV), the Australian Stock Exchange (PSD) and on the Frankfurt Stock Exchange on the XETRA system (German Symbol: PSI. Securities Code (WKN) 358705). pSivida is a founding member of the NASDAQ Health Care Index and the Merrill Lynch Nanotechnology Index.

The Company's largest shareholder and a strategic partner is QinetiQ, a leading international defense, security and Technology Company, formed in 2001 from the UK Government's Defence Evaluation & Research Agency (DERA). QinetiQ (QQ.) was instrumental in discovering BioSiliconTM and pSividas strong relationship with QinetiQ includes access to its cutting edge research and development facilities.

This document contains forward-looking statements that involve risks and uncertainties. The statements reference potential products, applications and regulatory approvals. Although we believe that the expectations reflected in such forward-looking statements are reasonable at this time, we can give no assurance that such expectations will prove to be correct. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements due to many important factors including: the failure of the company to successfully close a new issue of convertible notes; the failure of the Company to obtain the requisite shareholder approval to issue the new convertible notes; failure to obtain shareholder approval for the issue of shares underlying the ADS conversion and the warrant issues under the new convertible notes; our inability to raise additional funds at favorable terms or any terms; our inability to repay the amended notes and new convertible notes; issues relating to share registration in the U.S. that may delay our registration; our inability to develop proposed products, including without limitation, in the drug delivery, wound healing, orthopaedics, and tissue engineering, diagnostics and food technology fields; failure of our evaluation agreements to result in license agreements; failure to develop applications for BioSilicon due to regulatory, scientific or other issues; failure to complete negotiations for new centers for the BrachySil phase IIb clinical trial for inoperable primary liver cancer; failure of our discussions with the FDA for BrachySil to continue or to lead to FDA approval; failure of the BrachySil phase IIb clinical trial for inoperable primary liver cancer to determine the optimal dose, provide key safety data or support future pivotal efficacy trials or product registration or approval; failure of the BrachySil primary liver programme that is in phase IIb clinical trials to provide a valuable platform for the development and commercialization of BrachySil for pancreatic cancer and other indications; failure to commence phase IIa BrachySil(TM) trials for the treatment of pancreatic cancer; failure of the findings of the pancreatic cancer phase IIa trial to provide a platform for further multicenter efficacy and safety trials; failure of there to be optimization and standardization between our two pancreatic cancer study centers; failure of the results of the Retisert for DME trial to be a good indicator of the results of pSividas ongoing phase III Medidur for DME trial; failure of the Medidur trials in DME to show a very similar improvement in visual acuity and diabetic retinopathy severity score as Retisert for DME; failure of Medidur to release fluocinolone acetonide at the same rate as Retisert; our inability to recruit patients for the phase III Medidur for DME trial. Other reasons are contained in cautionary statements in the Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission, including, without limitation, under Item 3.D, "Risk Factors" therein. We do not undertake to update any oral or written forward-looking statements that may be made by or on behalf of pSivida.


pSivida Limited
Brian Leedman (Investor Relations), + 61 8 9226 5099
Martin E. Janis & Company, Inc
US Public Relations
Beverly Jedynak, 312-943 1100 ext. 12
Accent Marketing Limited
European Public Relations
Eva Reuter, +49 (254) 393 0740

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