Sydney, May 31, 2007 (ABN Newswire) - On 19 March 2007 Life Therapeutics (ASX: LFE) (PNK: LFEFY) announced that it had entered into a non-binding Heads of Agreement with a European fractionator in relation to a proposed transaction. At that time, the company granted to the European fractionator exclusive negotiation rights up until 1 June 2007.

The company advises that the European fractionator has successfully completed its due diligence and the companies are now proceeding towards finalisation of the terms of the transaction in accordance with instructions from the Board. Life Therapeutics will provide further specific details of the transaction to shareholders and the market once the agreement is finalised.

The company advises that the directors of the company believe that the terms of the transaction currently being finalised are in the best interests of shareholders of the company.

Life Therapeutics expects a binding agreement to be signed during the month of June. The Company in conjunction with Citigroup will hold investor presentations in both Sydney and Melbourne after announcing details of the agreement. Investors will be invited to attend these briefings by the CEO and CFO.

Life Sera collects both specialty plasma and normal source plasma, including Anti-D and Hepatitis B from a donor base of more than 5,000 in fourteen operational U.S. collection centers. The plasma is then sold to blood fractionators who process it into hyperimmune therapeutic products. Life Diagnostics provides highly specific diagnostic tests for blood-clotting disorders and source plasma products for blood-borne diseases.

Technologies include specialized blood coagulation tests to predict the risk of thrombosis and bleeding disorders. It also collects high-titer source plasma and serum used to make diagnostic kits.

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