May 17, 2005

 

Chemeq appointment of non-executive directors

 

 

Chemeq Limited (ASX: CMQ) announces the appointment of Mr Tony Davies and Mr John Nicholls as non-executive directors of Chemeq.

 

Mr Davies and Mr Nicholls were nominated for the Board of Chemeq by Mizuho International plc., Stark Trading, and Sheppard Investments International Ltd. Their appointment has been approved by the Board of Chemeq.

 

Chemeq's Chairman, Dr Graham Melrose said "The appointments of Mr Davies and Mr Nicholls provide Chemeq's Board with significant additional skills in finance and manufacturing."

 

"Tony is an experienced executive, particularly as a senior executive at Futuris Corporation and as a director of various Futuris Group companies."

 

"John's international business experience will be of considerable value as we begin sales and marketing of our products in world markets."

 

"John has been working with Chemeq since January, as a member of the Interim Management Consulting Team, and in this time, he has gained considerable knowledge about Chemeq."

 

Mr Nicholls has relinquished his role with the Interim Management Consulting Team.

 

Biographical Information for Mr Davies

 

Mr Davies has a Bachelor of Arts (Honours) in Economics and Accounting and is a Member of the Institute of Chartered Accountants in Australia.

 

Mr Davies is currently Chairman of Australian Plantation Timber Limited and a non-executive director of Amcom Telecommunications Limited, Integrated Tree Cropping Limited, Caversham Property Developments Pty Ltd and Australian Fine China Pty Ltd.

 

Mr Davies worked with Futuris Corporation Limited, as Finance Director (1989 - 2000), Director Risk Management (2000 - 2002), and Executive Director (2002 - 2004).

 

Prior to joining Futuris, Mr Davies worked as General Manager, Finance and Administration for the Bell Group Ltd, Finance Director for the Mitchell Cotts Group in Sydney, London and Vancouver, and as an auditor with Arthur Andersen.

 

Biographical Information for Mr Nicholls

 

Mr Nicholls has Bachelor of Commerce and Master of Business Administration degrees from the University of New South Wales.

 

Mr Nicholls is currently a non-executive director of a number of companies in Australia and Asia.

 

Mr Nicholls has had extensive experience with start- up and established companies, listed and unlisted, as CEO or a non-executive director. These companies, some established by himself, have been engaged in a wide range of activities including manufacturing, distribution, trading and merchant banking and were located in Japan, China, Hong Kong, Taiwan, Malaysia, Singapore, Indonesia, USA, Nigeria or Australia.

 

From 1967 to 1997, Mr Nicholls was a resident of various Asian countries, particularly including Hong Kong and Indonesia. In late 1997, Mr Nicholls returned to Australia and since 1999, he has been pursuing, principally, non-executive directorships and advisory roles.

 

 

About Chemeq

 

Chemeq is a veterinary drug producer which has developed a unique product, Chemeq® polymeric antimicrobial, for the prevention and control of intestinal bacterial diseases in feedstock animals, pigs and poultry.

 

The company's manufacturing facility at Rockingham in Western Australia is currently undergoing optimisation. The Australian Pesticides & Veterinary Medicines Authority (APVMA) issued a Good Manufacturing Practice (GMP) licence for the plant in April 2005. The nameplate capacity of the plant is 20 tonnes of active pharmaceutical ingredient per annum; equivalent to approximately 400,000 litres of finished product per annum.

 

To date, product approval has been secured in South Africa (pigs and poultry) and New Zealand (pigs). Distribution agreements with leading distributors have been secured in South Africa, New Zealand and Malaysia.

 

Chemeq's breakthrough AU$1.5 million sales order was signed with a South African group in August 2004.

 

Chemeq's intellectual property is protected by patents registered in more than 80 countries. The most recent approvals were received in U.S.A., and China where Chemeq now has manufacturing and marketing protection through to 2020 in both countries.

 

In March 2005, Chemeq shareholders approved an issue of convertible bonds worth up to AU$60 million with investment groups Mizuho International plc, Stark Trading and Shepherd Investments, which underpins the future financial strength of the Company.