An emerging biotechnology company with a focus on:

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An emerging biotechnology company with a focus on

• drug development to reduce the incidence of skin
  cancer and
• the manufacture and distribution of dermatology
  products.

December 2002EpiTan LimitedMelbourne, Australia
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Contents

• Page
• Market data 3
• The business 4
• Trial results 5
• Planned trials 9
• Current project plan 10
• Market size 11
• Other initiatives 12
• Upside 13
• Executional ability 15
• Fundraising 16
• Current financial position 17
• Summary 18
• Appendix I - Comparable companies 19

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Market data

• ASX Ticker EPT
• Listed February 2001
• Current price 0.13
• Current capital structure Issued Escrow Trading
  
• (Feb. 03)
• Shares (m) 86.4 38.0 48.4
• Options (m)
• Ordinary (ex price 30 cents) (m) 60.2 23.1 37.1
• Incentive scheme (m) 6.1
• Ordinary options expire 30 June 2003
• Shareholding
• 1340 shareholders
• 40 held by 2 largest shareholders (escrowed)
• Market capitalisation (at 0.13) 11.2 million
• 12 Month High/Low 0.32 / 0.05

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The business

• Exclusive worldwide development and
  commercialisation rights to Melanotan.
• Melanotan has the potential to reduce skin damage
  (caused by the sun) by stimulating the bodys own
  protective tanning mechanism.
• Skin damage often leads to skin cancer, the most
  common of all cancers.
• Inverse relationship between the incidence of
  skin cancer and pigmentation of the skin is well
  documented.
• EpiTan holds patents covering the structure and
  method of application of Melanotan in the major
  jurisdictions.
• Ongoing research and development, particularly in
  drug delivery, will lead to further intellectual
  property protection.

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Trial results

• Physicians Investigational New Drug (IND) Trials
  (FDA approved) on 100 human volunteers conducted
  in Arizona (USA) in the 1990s.
• IND Trials demonstrated safety and showed a small
  dose of Melanotan given daily over 10 days
  produces a 4-6 week tan.
• Phase I/II clinical trial successfully completed
  at Royal Adelaide Hospital in March 2002.
• Phase I/II trial showed Melanotan caused a
  statistically significant increase in skin
  melanin density.
• Minor side effects, including mild nausea,
  injection site irritation and transient facial
  flushing, related to the mode of administration
  and drug formulation, which are now able to be
  resolved by the Company.

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Preclinical animal trials
No Melanotan
Following Melanotan treatment
No Melanotan
Light-coloured hair regrowth upon cessation of
treatment
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Arizona IND studies
Three weeks of Melanotan treatment
No Melanotan
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Phase I/II clinical trial results Melanin Density
Baseline Corrected MelaninDensity Values on day
9 and 30
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Clinical trial schedule

• Phase IIb clinical trial commenced in November
  2002 (80 subjects).
• One objective to measure the effect of Melanotan
  on reducing the incidence of sunburn cells after
  controlled UV exposure.
• Clinical trials of a sustained release
  formulation of Melanotan anticipated to commence
  in early 2003.
• Sustained release formulation
• being developed in collaboration with the
  Southern Research Institute (Alabama, USA)
• will reduce levels of drug required (a single
  dose will provide protection of up to 6 months)
  and
• will eliminate side effects noted in Phase I/II
  clinical trials.

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Current Melanotan project plan
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Market size

• No other comparable drug known to be in clinical
  trials.
• Global dermatology market well over US1.5
  billion per annum.
• Cosmetic market (fake tanning stains / dyes and
  solariums) estimated at gtUS5 billion per annum
  worldwide.
• A500 million per annum in skin cancer treatment
  costs in Australia and rising.
• Other potential therapeutic indications for
  Melanotan
• - Vitiligo - Polymorphous Light Eruptions
• - Albinism - Porphyria
• - Xeroderma Pigmentosa

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Other initiatives

• Expansion into new leading-edge dermatology
  products to generate revenues in the short-term.
• Appointment of a US-based consultant to source
  new products for distribution in the Australasian
  region.
• Appointment of Mr Stan McLiesh (former General
  Manager - Pharmaceuticals for CSL Limited) to the
  Board.
• Mr McLiesh brokered numerous in-licensing
  agreements with international companies, enabling
  CSL to expand into new markets.

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Upside

• Share price appreciation to come from
• Phase IIb trial development
• Currently only 13 ASX-listed companies with drugs
  in Phase II clinical trials
• Of these, EpiTan has one of the lowest market
  capitalisations (refer Appendix I)
• Phase IIb trials commenced in November and
• EpiTans trials conducted at a fraction of the
  cost of other clinical trials because Melanotan
  is a preventative drug rather than a therapeutic.
• Revenue streams now being developed
• Company is currently investigating several
  in-licensing opportunities for dermatology
  products for distribution in Australia and New
  Zealand.

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Upside continued

• Partnering
• Following successful completion of Phase I/II
  trials, approaches to consider
• partnering have come from Big Pharma. A
  partnering deal could result in
• recoupment of certain project expenditure
• substantial project funding
• shortening of time to market
• additional technical support
• global product distribution capability and
• increased credibility / profile.

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Executional ability

• Board of Directors
• Dr. Wayne Millen BSc(Hons) PhD FRACI C.CHEM AFAIM
  CHAIRMAN and CEO
• Dr. Helmer Agersborg BS PhD DEPUTY CHAIRMAN
• Dr. Terry Winters BSc PhD NON-EXECUTIVE DIRECTOR
• Clinical Assoc. Prof. Alan Cooper OAM, BSc MBBS
  FACD Dip.Amer.Brd.Derm NON-EXECUTIVE DIRECTOR
• Mr Stanley McLiesh BEd NON-EXECUTIVE DIRECTOR
• Management and consultants
• Dr. Stuart Humphrey BSc PhD MANAGERCLINICAL
  DEVELOPMENT
• Mr. Michael Kleinig BAppSc MANAGER-PHARMACEUTICAL
  DEVELOPMENT
• Professor Robert Dorr BS MS PhD RPh TECHNICAL
  CONSULTANT Professor of Pharmacology and
  Director of the Pharmacology Research Program at
  the Arizona Cancer Center, USA
• Professor Terry Dwyer AM MB BS MPH MD TECHNICAL
  CONSULTANT Director of the Menzies Centre for
  Population Health Research
• Mr Thomas Laughlin BA MBA IN-LICENSING
  CONSULTANT

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Fundraising

• Shareholder approval has been obtained to issue
  up to 20 million new ordinary shares via a
  placement.
• Pricing to be determined (no less than 80 of
  average market price).
• Funds raised to be applied to
• accelerate development of Melanotan
• dermatology products operation and
• working capital.

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Current financial position

• Cash at bank - 1 July 2002 - 4.4 million.
• Cash budget - FY03
• million
• Cash at 1 July 2002 4.41
• Projected income (interest, GST refund) to 30
  June 2003 0.50
• Total 4.91
• Preclinical clinical studies (1.8)
• Drug formulation and development (1.4)
• Suppliers, employees, corporate (1.4)
• Net surplus 30 June 2003 0.3
• The above does not allow for any revenues
  generated from the in-licensing and distribution
  of dermatology products.

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Summary

• Innovative technology.
• Granted world patents, licence and trademarks.
• Phase I/II clinical trial successfully completed
  in March 2002.
• Phase IIb clinical trial commenced in November
  2002.
• Major international market
  US6.5 billion per annum.
• Potential partnering with Big Pharma.
• In-licensed product opportunities being
  developed.
• World-class board and management team.
• Strong financial position as at 1 July 2002.

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Appendix I - Comparable companies
Includes market capitalisation of restricted
shares
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