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ASX RELEASE 21 January 2004

Important New US Patent Granted for BioSiliconTM
“Smart Drug Delivery”

Global nanotechnology company pSivida Limited (ASX: PSD), is pleased to announce that its UK operating subsidiary pSiMedica Limited has been granted a further patent in the important US market.

US Patent No. 6,666,214 provides for a method of implanting an electronic device within a living animal or human body, wherein the device includes bioactive silicon and a method of delivering a drug to a living animal or human by placing the drug to be delivered on or within a bioactive silicon structure.

The Patent provides an important first step in the development of ‘smart’ drug delivery devices making use of the semi-conductor properties of silicon. pSiMedica is currently advancing development of its partnering strategy and continues to progress discussions with leading electronics and chip technology companies who have all expressed strong interest in the development of such devices.

pSivida Managing Director Gavin Rezos said,” This new US Patent is an important addition to our already strong IP portfolio. The patent will draw further attention in the US to the versatility of the BioSiliconTM technology platform and in particular to large value adding electronics and chip companies looking to develop ‘smart’ devices with potential applications in controlled drug delivery and diagnostics.”

This US patent follows 4 earlier patent grants in the key jurisdictions of the United Kingdom and United States and further strengthens pSiMedica’s healthcare claims for the BioSiliconTM technology.