safety medical products completes production t

Safety Medical Products Limited
25 Fenden Road, Salisbury Plain, South Australia
Australia, 5109
ACN 007 817 192
Phone: (08) 8285 5226 Fax: (08) 8285 3228
Email: [email protected] Website: www.safetymed.com.au
ASX Code: SFP
SafetyMed® is a registered trademark of Safety Medical Products Ltd
General Manager
The Company Announcements Office
Australian Stock Exchange Limited
Australia Square
Sydney NSW 1215
Dear Sir/Madam,
SAFETY MEDICAL PRODUCTS COMPLETES PRODUCTION TRIALS
Safety Medical Products Limited (ASX Code: SFP) is very pleased to announce that it has
completed production trials of its SecureTouch Retractable Syringe Automated Assembly Machine.
The machine (which can be viewed in action on the company website) has performed extremely
well over the past few weeks with the quality of product manufactured exceeding all expectations.
The machine now producing 5,000 SecureTouch Safety Syringes per hour has a capacity of over
43million units per year.
The state of the art technology used in the design and building of the machine is a credit to the
team of Engineers at ProControl Systems (a Division of SafetyMed) led by General Manager
Robert Doley, all of whom worked tirelessly to create this compact, truly innovative leading edge
equipment.
Exel International executives, Jatin Rajani and Armand Hamid have been constantly updated on
the machines progress and have now been notified of its completion and instructed to make the
appropriate preparations for the importation of the machine into the Exel syringe facility in Seoul,
South Korea.
A custom made air transport container is currently being designed and built by Aspect Packaging
in Adelaide to safely house the machine on its flight to Korea.
SafetyMed CEO John Riemelmoser and Chairman John Darley will visit Exel in Los Angeles later
this month to discuss the next stage of introduction of the SecureTouch into the market, including
Marketing Initiatives and Regulatory Approval progress.
The supply of this equipment to Exel by SafetyMed will complete SafetyMed’s obligations as per
the Strategic Alliance agreement signed by the two companies in April 2005.
This renewable five year agreement also includes “Sales Commitments” by Exel of 25million units
in the first year from the market ready date growing to 50million units in the second year and 10%
growth thereafter.
Under the agreement SafetyMed will receive a royalty based payment of US$0.01375 for each
SecureTouch Syringe produced
The four territories covered under the agreement give Exel exclusive rights for the SecureTouch
Syringe in the United States, United Kingdom, Germany and Japan.
Exel have a strong market presence in another forty countries for which they hold an option for the
product however new agreements will need to be formulated for these territories should Exel wish
to take up any of these options.
SafetyMed will retain exclusive supply and distribution rights for the product in Australia and New
Zealand.
There has been enormous interest in the progress SafetyMed has made since listing on the ASX in
late 2005 and the company believes the completion of this very significant milestone will
consolidate this interest and lead to international recognition of the Technical and Innovative Ability
of the Company and its subsidiaries.
The company would also like to inform shareholders that new holding statements for the
free bonus options issue will be dispatched to all shareholders no later than Friday 11th
May, 2007.
Yours faithfully,
John Riemelmoser
Managing Director
For further information please contact:
Mr. John Riemelmoser Mr Duncan Gordon
Managing Director Investor Relations
Safety Medical Products Limited Adelaide Equity Partners Limited
Ph. 08 8285 5226 Ph. 08 8232 8800
About Safety Medical Products Limited
SafetyMed is a company focused on developing and marketing a unique range of Safety Products
led by its flagship SecureTouch retractable syringe. The company’s strategy of acquiring related
companies to more rapidly secure economical development, distribution and sales of its products
will see it continue to achieve strong bottom line growth throughout 2007.