Highlights:

-- $1.2 million contract signed for Phase III schizophrenia study

-- In total, nine sales contracts signed since 1 July 2008, worth $2.3 million

-- $3 million in revenue already locked in for FY 2009

MELBOURNE, Australia, Aug. 12 /PRNewswire/ -- CogState Ltd (ASX: CGS) today announced that it has signed a contract with an international pharmaceutical company to provide its computerized cognitive testing technology and associated services for use in a phase III schizophrenia study.

Cognition will be a co-primary endpoint in the large phase III study, which will be conducted in over 70 sites and the CogState technology provided in seven languages. CogState Chief Scientific Officer, Professor Paul Maruff, commented, 'In addition to the strength of our scientific validation, CogState was selected from among its competitors because of the ability to successfully apply the CogState systems across different cultures and different languages.'

The phase III study will generate in excess of $1 million revenue for CogState over the life of the contract. More than 50% of the total revenue from the contract will be recognized by CogState in the year ending 30 June 2009.

CogState also announced that an additional eight contracts have been signed since 1 July 2008, taking the total to nine contracts signed with a combined value of approximately $2.3 million. Of the $2.3 million contract value, CogState expects approximately 63% of that revenue ($1.46 million) to be recognized in the financial year ending 30 June 2009.

Taking into account the contracts in place at 30 June 2008 as well as those signed since 1 July 2008, CogState now has contracts that will generate in excess of $4 million of revenue over the life of the contracts. CogState expects approximately $3 million of that revenue to be recognized in the financial year ending 30 June 2009.

CogState CEO, Brad O'Connor commented, 'The value of contracts in place at this early stage of the financial year puts CogState in a tremendous position to continue our revenue growth in the 2009 financial year. This time last year we had contracts in place that would generate $1.4 million of revenue over their life, $1.1 million of that in the 2008 financial year. So our position is significantly stronger than it was only 12 months ago.'

About CogState:

CogState Ltd specializes in the development and commercialization of rapid, computerized tests of cognition (brain function). The tests are sold to pharmaceutical, biotechnology, nutraceutical and functional food companies to quantify the effect of drugs or other interventions on human subjects participating in clinical trials.

Since sales into the clinical trials market began in 2004, CogState has secured agreements with organizations including Pfizer, AstraZeneca, GlaxoSmithKline, Merck, Abbott Laboratories, Centres for Disease Control (USA), ALZA Corporation (a member of the Johnson and Johnson group), Lundbeck and Organon USA. CogState is currently expanding its existing activities in the US and European clinical trial markets. For additional information: www.cogstate.com

     Company inquiries:
     Brad O'Connor
     Chief Executive Officer
     CogState Ltd
     Ph: +61 3 9664 1300
     Mob: +61 411 888 347
     boconnor@cogstate.com

SOURCE CogState Ltd