Chairman’s Address for ChemGenex Pharmaceuticals Limited Annual General Meeting

Delivered by Mr Brett Heading, Chairman

Distinguished guests, shareholders and friends of the company, welcome to the 2005 Annual General Meeting of ChemGenex Pharmaceuticals.

Last year I reported the company had 'commenced a new stage of its life' and stood ready to confront some exciting opportunities. I am delighted to say that the company has successfully capitalised on these opportunities. In doing so, the company has made substantial steps along the path to fulfilling our vision of being a major player in the field of personalized medicine.

It is not for me to detail the operations of the company as our CEO, Professor Collier will do that in his presentation, but it is worth reiterating some of the major milestones the company has achieved in the past year. In a strong year of performance I highlight to you:

• The listing of the company's securities on the NASDAQ SmallCap Market as American Depositary Receipts on 28 June 2005. The company has been included in the NASDAQ Health Care Index.
• Completing a deal with the Swiss Pharmaceutical company Stragen Pharma to guarantee the commercial manufacture and supply of Ceflatonin and accelerate clinical trials in Europe. This alliance saves ChemGenex an estimated $2 million in costs and accelerates by 6 to 12 months the clinical development program.
• The ongoing success of the company's two phase 2 clinical programs, programs that confirm that ChemGenex is a leader in delivering on the promise of personalized medicines.
• The publication in the leading international research journal Nature Genetics of a paper by ChemGenex scientists confirming the discovery of a major new target in inflammation. This paper has led to unprecedented recognition for the company in the USA including coverage in the leading US business journal, Forbes.

I wish to thank the executive management for their efforts throughout the year. The company has managed significant strategic developments and research wins this year. In particular, I thank Professor Greg Collier, Managing Director and CEO of the company, who has been integral to this success.

Running a small cap biotechnology company with offices in 2 countries and with collaborators in the UK and Europe is no easy feat and the travel demands are not inconsiderable on mind and body. Greg's enthusiasm and energy is legendary and has created a strong team environment for his managers and scientists to grow and contribute to our company's growth.

As a rule any investor in a life serving company must develop patience and tolerance as timelines so often are exceeded for a variety of reasons.

To ChemGenex shareholders, can I say loudly and clearly, that the years of patience have been commendable and my assessment is that our company is on the cusp of serious success. But you don't have to take my word for this. I am delighted to share with you today the news that ChemGenex has been recognised as a strategic leader within the Australian and New Zealand biotechnology industry by Frost & Sullivan - one of the premier growth consulting companies in the world. This Growth Strategy Leadership Award is outstanding external verification from a globally-recognized source of the value that we have created within ChemGenex, and it is a tribute to the work of the Board and the management team. I now call on Professor Collier to share with you an overview of the company and the year ahead.