pSivida to Present at the Sachs Associates: London Biotech Investment Forum

The London Biotech Investment Forum is a unique one day forumexclusively focusing on the most promising public and late-stageprivate companies in the biotechnology industry and will featureleading speakers from the investment banking, money management and VCcommunity.

Dr Ashton's presentation will not be webcast, but can bedownloaded from the pSivida website by clicking on the link below:

http://www.psivida.com/News/Presentations.asp

Please click on the link below for further details on the LondonBiotech Investment Forum.

http://www.sachsforum.com/london06.html

This announcement does not constitute an offer of any securitiesfor sale or the solicitation of an offer to buy any securities

NOTES TO EDITORS:

pSivida is a global bio-nanotech company committed to thebiomedical sector and the development of drug delivery products.Retisert(TM) is FDA approved for the treatment of uveitis.Vitrasert(R) is FDA approved for the treatment of AIDS-related CMVRetinitis. Bausch & Lomb own the trademarks Vitrasert(R) andRetisert(TM). pSivida has licensed the technologies underlying both ofthese products to Bausch & Lomb. The technology underlyingMedidur(TM), a treatment for diabetic macular edema, is licensed toAlimera Sciences and is in Phase III clinical trials.

pSivida owns the rights to develop and commercialise a modifiedform of silicon (porosified or nano-structured silicon) known asBioSilicon(TM), which has applications in drug delivery, woundhealing, orthopaedics, and tissue engineering. pSivida's subsidiary,AION Diagnostics Limited is developing diagnostic products and thesubsidiary pSiNutria is developing food technology products both usingBioSilicon(TM).

pSivida's intellectual property portfolio consists of 70 patentfamilies, 74 granted patents and over 290 patent applications. pSividaconducts its operations from offices and facilities near Boston in theUnited States, Malvern in the United Kingdom, Perth in Australia andSingapore.

pSivida is listed on Nasdaq (PSDV), the Australian Stock Exchange(PSD) and on the Frankfurt Stock Exchange on the XETRA system (GermanSymbol: PSI. Securities Code (WKN) 358705). pSivida is a foundingmember of the NASDAQ Health Care Index and the Merrill LynchNanotechnology Index.

The Company's largest shareholder and a strategic partner isQinetiQ, a leading international defence, security and technologycompany, formed in 2001 from the UK Government's Defence Evaluation &Research Agency (DERA). QinetiQ (QQ.) was instrumental in discoveringBioSilicon(TM) and pSivida enjoys a strong relationship with,including access to its cutting edge research and developmentfacilities.

For more information, visit www.psivida.com

This document contains forward-looking statements that involverisks and uncertainties. The statements reference potential products,applications and regulatory approvals. Although we believe that theexpectations reflected in such forward-looking statements arereasonable at this time, we can give no assurance that suchexpectations will prove to be correct. Given these uncertainties,readers are cautioned not to place undue reliance on suchforward-looking statements. Actual results could differ materiallyfrom those anticipated in these forward-looking statements due to manyimportant factors including: our inability to develop proposedproducts, including without limitation, in the drug delivery, woundhealing, orthopaedics, and tissue engineering, diagnostics and foodtechnology fields; failure of our evaluation agreements to result inlicense agreements; failure to develop applications for BioSilicon(TM)due to regulatory, scientific or other issues;failure to completenegotiations for new centers for the BrachySil(TM) phase IIb clinicaltrial for inoperable primary liver cancer; failure of our discussionswith the FDA for BrachySil(TM) to continue or to lead to FDA approval;failure of the BrachySil(TM) phase IIb clinical trial for inoperableprimary liver cancer to determine the optimal dose, provide key safetydata or support future pivotal efficacy trials or product registrationor approval; failure of the BrachySil(TM) primary liver programme thatis in phase IIb clinical trials to provide a valuable platform for thedevelopment and commercialisation of BrachySil(TM) for pancreaticcancer and other indications; failure to commence phase IIaBrachySil(TM) trials for the treatment of pancreatic cancer; failureof the findings of the pancreatic cancer phase IIa trial to provide aplatform for further multicentre efficacy and safety trials; failureof there to be optimisation and standardisation between our twopancreatic cancer study centres; failure of the results of theRetisert(TM) for DME trial to be a good indicator of the results ofpSivida's ongoing phase III Medidur(TM) for DME trial; failure of theMedidur(TM) trials in DME to show a very similar improvement in visualacuity and diabetic retinopathy severity score as Retisert(TM) forDME; failure of Medidur(TM) to release fluocinolone acetonide at thesame rate as Retisert(TM); our inability to recruit patients for thephase III Medidur(TM) for DME trial;. Other reasons are contained incautionary statements in the Annual Report on Form 20-F filed with theU.S. Securities and Exchange Commission, including, withoutlimitation, under Item 3.D, "Risk Factors" therein. We do notundertake to update any oral or written forward-looking statementsthat may be made by or on behalf of pSivida.