Ann: Product Development and Investment Opportuni, page-3

re: Ann: Product Development and Investment O... Letter of Intent – potential US$50 million+ three year deal
Today, OMI executed a Letter of Intent (LOI) with an undisclosed prospective distribution partner. The LOI
outlines the path to a formal contractual arrangement between the parties to allow for the commercial
introduction of the OMI Auto-Retractable Safety Syringe in particular high volume, high revenue generation
markets.
The LOI outlines predicted potential sales revenue in excess of US$50 million for the initial three years of
the agreement between the parties. Projections are based on the achievement of certain business and
regulatory requirements by the parties and are not contractually binding at this stage. Despite this, OMI
believes this opportunity represents another significant step in OMI’s future growth prospects and is a
credible and achievable opportunity for both parties.
Further increasing the OMI’s confidence in this LOI is the fact that this prospective partner has provided
initial purchase order forecasts and has a confirmed capability (and committed intention) to make advance
payment for any initial stocking order should a formal contract be executed between the parties. Assuming
this opportunity now progresses to contract, revenue is not expected to flow from this agreement until the
third or fourth quarter of financial year 2009/2010.