ASX ANNOUNCEMENT   Removal of $1.5M potential liability  

9 February 2009, Sydney, Australia: Medical Therapies Limited and Cell Signals Inc., have signed an amendment to the Intellectual Property Agreement which replaces a cash payment of $1.5M with the issuing of 15 million MTY shares to Cell Signals, subject to shareholders’ approval.

According to the terms of the Intellectual Property Agreement signed by the parties on 16th April 2008 the $1.5M was to be paid to Cell Signals within 90 days after the completion of the transfer of all Midkine related patents owned by Cell Signals.  

The last applications for assignment of the intellectual property were lodged in December and a payment obligation would have arisen once the assignments were completed by Nagoya University, the co-owner of four of the ischemia related patents.  

By agreeing to a share package, as opposed to a cash consideration, the shareholders of Cell Signals have expressed their continued confidence in the Midkine technology.  

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