Prana Biotechnology Limited announced a substantial expansion to its existing University of Melbourne agreement to lengthen the collaboration by two years to 2006 while intensifying research into new drug candidates.

Executive Chairman Geoffrey Kempler said, "Prana continues to enjoy a highly productive relationship with the University of Melbourne. This extension effectively adds a minimum of two years to our association and shows the continuing commitment to our drug development objectives."

The eminent neuroscience researcher Professor Colin Masters, Professor of Pathology at the University of Melbourne and a Director of Prana, will continue to oversee this research team. Professor Masters' laboratory has been a global leader in Alzheimer's disease research for over 20 years. Prana Biotechnology will own all results of the research program.

The original agreement between Prana Biotechnology and the University of Melbourne was signed in May 1999 with the objective of furthering Prana's research program into the underlying mechanisms of Alzheimer's disease and related neurodegenerative disorders. Arising from this research to date has been the development of Prana's MPAC platform technology and the identification of other therapeutic approaches with exciting promise for the treatment of Alzheimer's disease, Parkinson's disease and other neurodegenerative diseases.