Proteome Systems and Diagnostic Consulting Network sign International Licensing & Marketing Deal

SYDNEY, Australia, 21 September 2006 -- Proteome Systems Ltd. (ASX: PXL) today announced it has entered into a Memorandum of Understanding with Californian based Diagnostic Consulting Network (DCN), a leading international diagnostic company, for the marketing and development of PXL’s diagnostic platform (DiagnostIQ) and Biomarker discovery expertise.

DCN specialises in the development of diagnostic tests from prototype stage through to commercial products for its customers, with a focus on providing a complete turnkey service from concept to manufacture. Proteome Systems’ patented diagnostic platform is suitable for use in many different diagnostics applications and DCN and Proteome Systems plan to collaborate on the development and commercialisation of new diagnostic products, predominantly for the human health markets. DCN will promote Proteome Systems’ test platform under its One Step One Solution (OSOS) program to its customers and develop prototype diagnostic tests using DiagnostIQ and its third party customers’ test reagents and antibodies. Once feasibility is established, its customers will then seek a commercial license directly from Proteome Systems. DCN’s international experience and global network in diagnostics development and manufacturing is also expected to generate Biomarker development business for Proteome Systems in areas of mutual interest.

The DCN OSOS program was founded in association with BioDot Inc, the global leader in the supply of equipment and technology for the development and manufacture of rapid diagnostic tests. In 2006 DCN assumed outright ownership of the OSOS program and has since identified a number of strategic partners for the development of rapid point of care diagnostic tests, including Proteome Systems.

Proteome Systems will also benefit from DCN’s expertise and experience in diagnostic test development and manufacturing in other ways, as DCN will provide assistance and consulting to Proteome Systems for its TB point of care diagnostics project and to third parties interested in developing products on Proteome Systems’ DiagnostIQ platform.

Proteome Systems’ CEO, Stephen Porges said “This is a significant step in our business plan to further leverage the valuable Intellectual Property underpinning our DiagnostIQ platform. The ability to generate royalty revenues from third party utilisation of our platform is a major step toward the commercial maturity of our business. As stated previously, the business development of this type of royalty stream is best outsourced to groups that specialise and DCN has had significant success and understands the market. ”

DCN’s President, Brendan O’Farrell, said “DCN’s strategy has been to target a select group of technology providers with the aim of solving key issues of performance, accessibility and connectivity in next generation Point of Need Diagnostic applications. We are confident that the inclusion of Proteome Systems’ DiagnostIQ platform into our OSOS program fits well with this strategy. This platform will allow us to address the needs of a significant share of point of care clients whose requirements include difficult sample pre-treatments, high assay sensitivity, reproducibility and quantification. Our experience as developers and educators, as well as our broad access to novel facilitative labelling and reading technologies will allow potential users to evaluate and adopt this technology quickly, and our broad access to market will assist Proteome Systems in reaching the maximum number of potential licensees”.

About DCN
Diagnostic Consulting Network (DCN) supplies a range of services and products to the Point-of-Care diagnostics marketplace through its One Step One Solution program. Key services include custom assay development, industry education, technology transfer, and technology evaluation, as well as a wide range of consulting services. DCN also provides a full catalog of reagents, specialty chemicals, materials, assay components and other consumables, specifically tailored to the needs of POC assay developers and manufacturers. DCN is unique in the point of care diagnostics industry, combining internal expertise in assay development and manufacturing with an active Network of Affiliate companies and consultants providing expertise, licenses and products in key aspects of current and next generation assays. The company encourages the development of better, more efficient platforms for the empowerment of individuals and communities in controlling their own healthcare.

Additional information about Diagnostic Consulting Network can be found at www.dcndx.com.

About Proteome Systems
Proteome Systems Limited [ASX:PXL] is a dynamic biotechnology company which discovers and develops diagnostics and therapeutic products. The Company has extensive expertise in the discovery and development of protein and glycoprotein biomarkers with a focus on diseases for which there are large global markets and unmet need for diagnostics and drugs such as, respiratory disease, neurobiology, neurodegenerative disease, cancer and infectious diseases. PXL’s scientific leadership is demonstrated by its track record in partnering with leading US and European companies, clinical groups and research institutions to collaborate on its research programmes and develop the outcomes of its research for diagnostic and therapeutic application.

Additional information about Proteome Systems can be found at www.proteomesystems.com.
For further information, please contact:
Stephen Porges, CEO
0429 420 237

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