Ann: Appendix 4C-AXP.AX, page-2

Some things I took away from the latest 4c and conference call:

Strong presence at the expo and their profile is growing. Strong clinical data supported by 3 additional plastic surgeons presenting their experiences with Aeroform, including a surgeon from Sydney winning best paper.

FDA anticipated final quarter this year. Pending this, commercialise shortly after (we knew this).

There will probably be another CR, more than likely after FDA and shift to Costa Rica to fund increase in working cap, inventory and sales and marketing.

Good growth in unit sales, 84 unit sales over 67 this quarter, reflected in receipts. Good to see reduction in days outstanding in recripting invoices.

70% of 70 surgeons they have on board have tried device at least once. Remaining surgeons still in waiting process, looking at patient selection etc. 22 surgeons across 4 states are habitual users, and a handful use Aeroform 100% of the time.

Costa Rica – First line installed, on schedule for validation, and to support unit manufacture. Post FDA clearance, install additional line based on demand – 6 to 9 month lead time.

All in all, a hold for me.