Original illustrations by Julie Vivas from the children's classic Possum Magicﾠ will be on display to the public until 28 July at Walker Street Gallery in Dandenong in Melbourne. The exhibition is curated by Books Illustrated.

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The Guardian reports that a set of Harry Potter 'deluxe' first editions was auctioned for 17,800 pounds on 1 July. The online bidding software nearly crashed because so many people were trying to register. Read more.

Salman Rushdie has been knighted for his services to literature. He was knighted by Queen Elizabeth II in a ceremony on 25 June. A  fatwa which has never been revoked was placed on the author for his novel The Satanic Verses by the ayatollah Khomeini in 1989. Fury, Shalimar the Clown and The Enchantress of Florence are Rushdie's most recent novels.

The Lost Dog by Michelle De Kretser has won the 2008 Australian Literature Society (ALS) Gold Medal for an outstanding literary work. The win was announced during the recent annual conference of the Association for the Study of Australian Literature. This year celebrates the 60th anniversary of the prize.

The Lost Dog, which also won this year's NSW Premier's Literary Award for best book, beat shortlisted titles including Not Finding Wittgenstein by J S Harry and Landscape of Farewell by Alex Miller.

Little Mouse's Big Book of Fears by Emily Gravett has won the Kate Greenaway Medal. Established by the UK Library Association in 1955, the Kate Greenaway Medal is a prize of AU$1035 for distinguished illustration in a childrens book. The winner also receives a medal and AU$1035 worth of books to donate to a library of their choice.

Gravett won the award in 2005 for her debut picture book Wolves and has also been shortlisted before.

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