16 November 2001

The University of Queensland’s technology commercialisation company, UniQuest is pleased to announce the formation of Magnetica Limited, an Australian based bio-medical and scientific instrumentation designer and manufacturer.

Magentica will hold worldleading magnetic resonance technology developed by the Centre for Magnetic Resonance (CMR) at The University of Queensland. The company will be involved in the research, development and manufacture of magnetic resonance equipment for the medical, analytical and industrial markets. These markets generate over US$4billion in revenues each year and are growing at over 10% p.a.

Conditional agreements were signed yesterday for Magnetica to acquire a platform of technologies, primarily manufacturing and intellectual property assets, from various parties associated with The University of Queensland’s commercialisation unit, UniQuest and from Koala Corporation Australia Limited, the owner of other magnetic resonance technology developed by CMR.

The agreements are principally conditional upon Magnetica completing a private raising to fund the commercialisation of a number of the technologies and on Koala Corporation Australia Limited completing its acquisition of part of the intellectual property assets. The parties are well advanced in discussions with a number of potential funders, and may also consider a public listing of Magnetica at an appropriate time in the future.

Mr David Henderson, Managing Director of UniQuest, said, “UniQuest is extremely pleased with the formation of Magnetica and the execution of conditional agreements with Koala and other parties. Magnetica will commence operations with 20 staff, a strong technology and commercial base with over 15 patent families, existing cash flow from commercial arrangements with major suppliers to medical and analytical markets, and an existing profitable manufacturing operation supplying users worldwide.”

The three key assets to be incorporated into Magnetica are:

1. A portfolio of valuable granted patents and patent applications which underpin a significant growth program over the next three years. These include several unique design patents aimed at building the next generation of MRI hardware systems.
2. Royalty income from a patented MRI technology already licensed to the two largest suppliers of MRI systems in the world, which is incorporated into every superconducting MRI machine they produce.
3. An existing manufacturing business based in Brisbane, Australia, producing and selling magnetic resonance equipment to the major participants in the US$1 billion analytical magnetic resonance market.

The Board of Magnetica will initially comprise Professor David Doddrell (the Director of the Centre for Magnetic Resonance at The University of Queensland since 1990 and a leading Nuclear Magnetic Resonance expert), Mr Peter Grogan (a Director of Koala Corporation) and Mr Bernard Schreiber (commercial executive with UniQuest). Further independent Board members will be appointed.

Media: For further information, please contact: Mr David Henderson, Managing Director UniQuest (07) 3365 7989