pSivida in new evaluation agreement

Perth-based bio-nanotech company pSivida Ltd has entered into an evaluation agreement with a large medical device company to evaluate cardiovascular delivery of drugs using pSivida's drug delivery technologies.

At 830 WST, pSivida's share price had risen .5 cents to 70.5 cents.

Below is the full announcement:

Perth, Australia and Boston, MA - Global bio-nanotech company pSivida Limited
(NASDAQ:PSDV, ASX:PSD, Xetra:PSI) today announced that it has entered into an
evaluation agreement with an undisclosed large medical device company to evaluate cardiovascular delivery of drugs using pSivida's drug delivery technologies.

This agreement follows the Company's announcement in January 2006 that it had signed evaluation agreements with various companies including large global pharmaceutical companies, to evaluate pSivida's proprietary platform technology for their developmental compounds. pSivida has licensing agreements with Bausch & Lomb, Alimera Sciences and Beijing Med-Pharm and evaluation agreements with three of the five largest pharmaceutical companies in the world.

RetisertTM and VitrasertTM are the only FDA approved sustained release drug treatments to the back of the eye and both are licensed to Bausch & Lomb. RetisertTM is approved by the FDA for the treatment of uveitis, a sight threatening disease that affects approximately 175,000 Americans. Priced at US$18,250, RetisertTM is covered by US Medicare and co-promoted in the United States by Bausch & Lomb and Novartis.

Recent results at two years from two multi-centered clinical trials in the US demonstrated that patients with Diabetic Macular Edema (DME) who received RetisertTM were more likely to have an improvement in vision of at least three lines on an eye chart and experience a stabilization or improvement of their Diabetic Retinopathy (DR). There are no FDA approved drug treatments for DME and DR, the leading causes of vision loss in people under the age of 65 in the United States.

Unlike RetisertTM which is surgically implanted into the eye, MedidurTM, the next evolutionary stage of the technology, is designed to be injected into the eye and to release the same drug as RetisertTM at the same rate. MedidurTM is licensed to Alimera Sciences for the treatment of DME and is currently in phase III clinical trials.

BrachySilTM is licensed to Beijing Med-Pharm for China as a new and innovative treatment for inoperable liver cancer. BrachySilTM is based on pSivida's proprietary BioSiliconTM technology and is presently in Phase IIb clinical trials conducted at Singapore General Hospital. We expect BrachySilTM to commence Phase IIa clinical trials for the treatment of inoperable pancreatic cancer this year.

"This agreement demonstrates our drug delivery technology is being evaluated in areas beyond ophthalmology and oncology treatments," said Mr Gavin Rezos, CEO of pSivida Limited.