New Laser Therapy for Retinal Diseases

I just received this news release about a new treatment for retinal
disease that will be released and discussed at the upcoming AAO
meeting in New Orleans.

Ellex Announces New Retina Regeneration Therapy to be Presented at the
AAO

Adelaide, 1 November 2007 - Ellex Medical Lasers Limited (ASX:ELX), a
global leader in the design and manufacture of ophthalmic laser and
ultrasound systems, announced today that the initial results of
treating patients with Retina Regeneration Therapy (Ellex 2RTT) will
be presented by Peter Hamilton MD, FRCOph at the annual meeting of the
American Academy of Ophthalmology, which takes place November 10-13,
in New Orleans. Dr. Hamilton conducted the first patient treatments
recently in London under the direction of Professor John Marshall,
Ph.D., FRCPath. Professor Marshall, an Ellex board director, is
currently Frost Professor of Ophthalmology at the Rayne Institute and
the Academic Department of Ophthalmology at King's College, University
of London.

Ellex 2RT is a new non-thermal laser treatment that relies on
nanosecond pulses of laser energy to stimulate the retinal pigment
epithelium (RPE) to preserve vision. Laboratory research conducted
under Professor Marshall over the past few years has demonstrated that
the Ellex 2RT method causes the RPE to migrate and release matrix
metalloproteinase (MMP's), which are the enzymes that clean up Bruch's
membrane. Further laboratory experiments to measure the ability of
Bruch's membrane to transport water and chemicals have shown the
entire transport mechanism of the retina has been rejuvenated. Dr.
Hamilton treated the initial series of patients in London following
two years of laboratory research funded by Ellex and conducted under
the direction of Professor Marshall at St. Thomas' Hospital in London,
UK and Royal Adelaide Hospital in Adelaide, Australia.

"Dr. Hamilton's presentation of Ellex 2RT patient data at the AAO
marks a milestone for Ellex and Professor Marshall's collaborative
research program," commented Peter Falzon, Ellex CEO. "We are pleased
to be working with Professor Marshall and Dr. Hamilton, long-time
leaders in the field of ophthalmology, to advance the science and
technology that is enabling Ellex 2RT to emerge as a potential new
therapy of interest for early AMD and diabetic patients. More research
is needed and at Ellex we look forward to investigating and reporting
the benefits of 2RT therapy over time."

"Ellex 2RT is a candidate therapy for retinal diseases, which are
caused by a compromised Bruch's membrane resulting in reduced energy
supply to, and waste removal from, the photoreceptors," commented
Professor Marshall. "The diseases that can potentially be treated
include early AMD, diabetic retinopathy and other retinal diseases.
With Ellex 2RT, there is the potential to treat retinal diseases
earlier, before irreversible physical changes occur and before
patients experience significant vision loss."

The Ellex 2RT prototype laser systems were developed specifically for
Ellex 2RT laboratory and clinical trials by the Ellex advanced
research team in Adelaide, Australia. Although there are many types of
lasers used in ophthalmology, Ellex 2RT therapy parameters are unique
and can only be performed with an Ellex 2RT laser system. Ellex has
international patents pending for the Ellex 2RT technology and method.