XRT Limited concludes license agreement with Gatan Inc., Pleasanton CA.

May 2005

XRT LTD SIGNS TECHNOLOGY LICENCE AGREEMENT WITH GATAN INC

BioTech

May 31, 2005:The Board of BioTech Capital Ltd (ASX:BTC) is pleased to announce that investee company, XRT Ltd, has entered into a significant commercial partnership with Gatan Inc., the world's leading manufacturer of instrumentation and software used to enhance and extend the operation and performance of electron microscopes.

Under this new agreement, California-based Gatan Inc. will utilise XRT’s unique x-ray imaging technology to develop and distribute an x-ray microscope product which can be hosted as an accessory to an electron microscope. This new product will greatly extend the performance capabilities of conventional electron microscopes allowing users to see the internal structure of materials with resolutions down to 1000th of the diameter of a human hair.

The partnership involves XRT granting a license to its technology and software. In return XRT Ltd will be entitled to royalties on future sales of the instruments.

“We are very excited about the potential for XRT’s phase contrast techniques in the electron microscopy market. This intellectual property presents us with further opportunities to exploit the emerging nano-technology space where there is an ever increasing demand for non-destructive imaging of new and complex structures”, said Bob Buchanan, President & CEO of Gatan Inc. He went on to say, “the incorporation of an x-ray imaging capability within our product portfolio sits comfortably alongside our imaging and analytical instruments, providing us with a new adjacent market for our existing capability”.

In March this year, XRT Ltd also signed a technology development and license agreement with a global leader in inspection and analysis instrumentation to develop new 3D metrology and analysis tools based on XRT’s patented phase contrast imaging technology. These dedicated tools will be manufactured in the northern hemisphere and distributed by the manufacturer through their worldwide network of subsidiary companies and agents.

XRT Ltd is currently moving towards a re-location of its activities in the United Kingdom and both of these agreements form an important element of this strategy.

About BioTech Capital Ltd (www.biotechcapital.com.au)

BioTech Capital Ltd (“BTC”) is one of Australia’s largest life-science focused private equity funds. With approximately $10 million in investment funds still available, the company is well placed to continue to develop a diversified portfolio of high quality Australian life-science investments.

BTC currently has investments in a diverse group of Australian life-science companies including Alchemia, Biocomm, Clinical Cell Culture, Continence Control Systems, Pacific Knowledge Systems, Phylogica, Prima Biomed, Proteome Systems, Starpharma, Stem Cell Sciences and XRT.

As a registered Pooled Development Fund (PDF), investors are generally exempt from tax on capital gains and income.

BTC is listed on the Australian Stock Exchange (Code: BTC, BTCOA) and is managed externally by Titan BioVentures Management (www.titanbioventures.com).

About XRT Ltd (www.xrt.com.au)

XRT Ltd leads the world in the practical application of x-ray phase contrast imaging, a technique which is useful for a wide variety of applications where knowledge of the internal structure of materials and components is essential.

Located in Melbourne, Australia, XRT Ltd has brought together a powerful combination of scientific, technical and commercial skills to deliver innovative products for x-ray ultraMicroscopy and x-ray phase contrast radiography.

XRT Ltd has established a strong international patent portfolio around its technology and the company’s strategic objective is to maintain and further develop a world class competence in the capture, extraction, manipulation and storage of phase contrast data from x-ray images.

About Gatan Inc (www.gatan.com)

The Gatan brand name is recognized and respected throughout the worldwide scientific community and has been synonymous with high quality products and the industry's leading technology.

The company’s products, which are fully compatible with all brands of electron microscopes, cover the entire range of the analytical process from specimen preparation and manipulation to imaging and analysis.

Their customer base spans the complete spectrum of end users of analytical instrumentation typically found in industrial, governmental and academic laboratories. The applications addressed by these scientists and researchers include metallurgy, semiconductors, electronics, biological science, new materials research and biotechnology.

Gatan, Inc. is a member of the Imaging Instrumentation segment of the Roper Industries, Inc. family of companies. Roper Industries Inc. is listed on the New York Stock Exchange (Code: ROP)