General Manager The Company Announcements Office Australian Stock Exchange Limited Australia Square Sydney NSW 1215 ANNOUCEMENT Dear Sir/Madam, Safety Medical Products Ltd is pleased to announce the successful commencement of commissioning of the Securetouch Retractable Syringe Assembly Machine. There has been a slight delay to getting to this point due to some inconsistencies in the quality of components supplied for assembly, however these issues have now been resolved. We advise the machine had achieved an assembly rate of more than 2,500 units per hour by the end of last week and will now be gradually ramped up over the next week to reach its full desired capacity of a minimum 4,000 units per hour or more than 34million units per year. The ramping up to full capacity is a gradual process due to constant monitoring and analysis of each assembly station on the equipment. This enables identification of sections that can be accelerated to their full potential thus achieving a total synchronisation at maximum speed whilst not putting the equipment at risk during this process. When full commissioning has been completed the equipment will be prepared for shipping to the Exel Syringe Plant in Korea for installation and full production. The company will soon have video footage of the assembly equipment in action on its website and we look forward to full commissioning very soon. Yours faithfully, John Riemelmoser Managing Director
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