Sydney, Sept 12, 2006 (ABN Newswire) - Life Therapeutics (ASX: LFE)(PNK: LFEFY) announced today that it has completed the sale of the Frenchs Forest building for A$9.25m to a fund controlled by MacarthurCook Ltd (ASX: MCK).

The sale of the last Australian asset generates $3m cash and A$1.5m profit and these funds will be used toto retire debt.


Impact on Life Therapeutics

"This is a significant development for Life Therapeutics as it completes the sale of the last Australian asset while generating free cash of $3m and a profit of A$1.5m," said Dr. Hari Nair, CEO and Managing Director of Life Therapeutics. "The funds from this sale will be used to retire A$5.3m debt making Life Therapeutics virtually debt free excluding the Convertible Notes" said Dr Hari Nair.

"The sale of the Frenchs Forest building is also an important step in the Company's Level II ADR listing process. Further, the sale will also save Life Therapeutics over A$700,000 pa in interest and building maintenance", Dr Nair added.