NOTICE OF ANNUAL GENERAL MEETING

and

EXPLANATORY NOTES

Notice is given that the 2005 Annual General Meeting of the Members of Institute of Drug Technology Australia Limited (the "Company") will be held at 45 Wadhurst Drive, Boronia, Victoria on Friday the 28th of October 2005 at 10.00 am.

A McKenzie, Secretary
By order of the Board of Directors
Dated this 26th day of September 2005.

ORDINARY BUSINESS

1. Financial Reports

To receive and consider the Company's financial report and reports of the directors and auditors in respect of the financial year ended 30 June 2005.

2. Election of Mr Alan Blackman

Mr Alan Blackman retires as a director by rotation in accordance with Rule 16.1 of the Company's Constitution and, being eligible, offers himself for re-election.

3. Election of Dr Geoffrey Vaughan

Dr Geoffrey Vaughan retires as a director by rotation in accordance with Rule 16.1 of the Company's Constitution and, being eligible, offers himself for re-election.

4. Remuneration Report (Non-Binding Vote)

To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

"To adopt the Remuneration Report as disclosed in the Annual Directors Report for the year ended 30 June 2005."


5. Appointment of Auditor

To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

"That RSM Bird Cameron be appointed as Auditor of Institute of Drug Technology Australia Limited."

Determination of membership and voting entitlement for the purpose of the Meeting

For the purpose of determining a person's entitlement to vote at the Meeting, a person will be recognized as a member and the holder of shares in the capital of the Company if that person is registered as a holder of those shares at 5.00pm Melbourne time on 26th October 2005.

Proxies

1 A member entitled to attend and vote is entitled to appoint a person or body corporate as proxy to attend and vote instead of the member.

2. Where the member is entitled to cast two (2) or more votes, the member may appoint two (2) proxies and may specify the proportion or number of votes each proxy is appointed to exercise.
3 If the member appoints two (2) proxies and the appointment does not specify the proportion or number of the member's votes each proxy may exercise, each proxy may exercise half of the votes.
4 A proxy need not be a shareholder of the Company.
5 Proxies given by companies must be executed under seal, in accordance with the Corporations Act or under the hand of a duly authorised officer.
6 To be effective, a form appointing a proxy and the power of attorney (if any) under which it is signed or an attested copy thereof must be delivered to the registered office of the Company at 45 Wadhurst Drive, Boronia, Victoria 3155 or faxed to the Company on (03) 9801 8773, not later than 10.00am on Wednesday 26th October 2005.

A form of proxy accompanies this Notice

By Order of the Board

_____________________
A McKenzie
Secretary
26th September 2005

EXPLANATORY NOTES

ITEMS 2 AND 3 - RE-ELECTION OF DIRECTORS

Rule 16.1(b) of the Company's Constitution requires that at the Annual General Meeting in every year one third of the Directors of the Company for the time being retire and offer themselves for re-election. The Managing Director and directors appointed to fill casual vacancies are not to be taken into account.

As at the date of this Notice of Meeting, the Board of the Company comprised five Directors who are subject to rotation and accordingly two Directors, Messrs Alan Blackman and Dr Geoffrey Vaughan, are required to retire and offer themselves for re-election.

ITEM 4 - REMUNERATION REPORT (NON-BINDING VOTE)

Under S300A of the Corporations Act 2001, the Annual Directors Report must now include a separate identified remuneration report. Listed companies are further required to put the remuneration report up for adoption at the Company's Annual General Meeting. However, the vote on the resolution is advisory only and does not bind the Directors of the Company.

ITEM 5 - APPOINTMENT OF AUDITOR

The Corporations Act 2001 requires Shareholders to approve the appointment of a new auditor.

In June 2005 the company announced that it would be seeking a change of external auditor at the end of the financial year. The company announced that it wished to appoint RSM Bird Cameron as the company's external auditor subject to shareholder approval at the Annual General Meeting.