Bummer, I had been picking up PBP lately under $1.20 but the latest announcement caused a bounce! Good news for PBP before half year results due to be released soon...


11 February 2008
Probiotec Appeal Successful


Probiotec Limited has made previous announcements (on 15 March 2007, 16 April 2007, 20 April 2007 and 24 May 2007) regarding its potential liability in a legal action referred to as the Phoscal Claim. In April 2007 three Probiotec group companies were ordered to pay the legal costs of the claimant in the proceedings. As previously advised, Probiotec appealed the decision and also commenced proceedings against its former legal representatives to recover all moneys payable as a result of that judgment.

The judgment in Probiotec's appeal was delivered on 8 February 2008. Probiotec was successful in the vast majority of its claims. The effect of the appeal judgment is that it has reduced Probiotec's liability from 100% of the claimant's legal costs to 10% of those legal costs. The claimant has also been ordered to pay Probiotec's legal costs of the appeal. Any appeal by the claimant must be commenced by 7 March 2008.

Probiotec's preliminary assessment is that its liability (which is yet to be quantified) under the appeal judgment will be for an amount estimated to be in the range of $50,000 - $350,000. This is a substantial reduction from the previous estimate of legal costs under the original order of $2.1m - $5m.

Probiotec intends to continue with its proceedings against its former legal advisers. It considers that it is likely to recover the majority (if not all) of the amount it pays under the revised judgment through this action.

Probiotec will advise the market immediately once a definitive amount is determined that the
company is required to pay as a consequence of both its successful appeal and the results of the action against its former legal advisers.

About Probiotec
Probiotec Limited is a brand owner, manufacturer, marketer and distributor of a range of
prescription and over-the-counter (OTC) pharmaceuticals, complementary medicines and
specialty ingredients. The company owns four manufacturing facilities in Australia and distributes
its products both domestically and internationally. Products are manufactured by Probiotec for
both its own products and on behalf of others, including major international pharmaceutical
companies.