Anteris Technologies Global Corp. — Interim / Quarterly Report 2011

Feb 28, 2011

==> picture [595 x 63] intentionally omitted <==

Innovative BioMedical Devices bioMD Limited ABN 35 088 221 078 Unit 9, 589 Stirling Hwy Cottesloe, Western Australia 6010 PO Box 956, Cottesloe Western Australia 6850

Telephone +61 8 9385 5038 Facsimile +61 8 9385 5028 www.biomd.com.au

ASX RELEASE

28 February 2011

Company Announcements Office Australian Stock Exchange Limited 10[th] Floor, 20 Bond Street SYDNEY NSW 2000

Half Yearly Report (Appendix 4D) for the 6 months ended 31 Dec 2010

The Directors of bioMD Limited (the "Company") are pleased to announce the operating results of the Company for the 6 months ended 31 December 2010 comprising:

• Appendix 4D;

• Directors’ Report;

• Financial Report;

• Directors’ Declaration; and

• Audit Report and Independence Declaration.

Yours faithfully

==> picture [96 x 55] intentionally omitted <==

Darren Bromley Company Secretary

==> picture [595 x 41] intentionally omitted <==

Appendix 4D

Half Yearly Report

Name of Entity:

ABN:

Reporting Period:

Previous corresponding Period:

bioMD Limited 35 088 221 078 Half year ended 31 December 2010 Half year ended 31 December 2009

Results for Announcement to the Market

				$A’000
Revenues from ordinary activities	down	27.7%	to	29
Loss from ordinary activities after tax	down	43.3%	to	(414)
Loss for the period attributable to members	down	40.7%	to	(381)

Dividends	Amount per security	Franked amount per security
Interim dividend	NIL¢	NIL¢
Previous corresponding period	NIL¢	NIL¢

Results Commentary

The loss for the period after income tax was $413k compared to $730k for the same period in the prior year. Cash at bank as at 31 December 2010 was $749k for the consolidated entity.

The company is continuing to develop a second generation ADAPT biomaterial with differing physical characteristics. The intention is to be able to “tailor make” a biomaterial for a specific surgical use.

The Phase II human clinical trial for CardioCel cardiovascular patch is complete and all the data from that study is being used to support our regulatory listing of the device by the fourth quarter 2011.

Although the human clinical trial of the Gynecel patch for anterior prolapse repair of the pelvic floor was suspended due to patient post operative infections, work is continuing with further preclinical investigations with a view to re-establish clinical evaluations.

The heart valve feasibility study completed its first milestone successfully and will now continue with functional testing of ADAPT treated valves and comparative rat implant studies that are due for completion in April.

Research continued with:

• A juvenile rat study comparing our ADAPT biomaterial with human cadaver derived pericardium has been completed with positive results and discussions are underway to move this to a clinical trial.

• Studies continued with determining a method of changing the pore size of our ADAPT biomaterial mesh.

• In vitro studies continue using Mesenchymal stem cells and chondrocytes.

Net Tangible Assets per security

Net Tangible Assets per security
	Current period	Previous corresponding period
Net tangible asset backing per ordinary security	0.81 cents per share	0.46 cents per share

Control gained over entities having material effect

N/A

Loss of control of entities having material effect

N/A

Details of aggregate share of profits (losses) of associated and joint venture entities

N/A

This report is based on:

The accounts have been subject to review.

Sign here:

==> picture [96 x 56] intentionally omitted <==

Date: 28 February 2011

(Company Secretary)

Print name: Darren Bromley

==> picture [76 x 52] intentionally omitted <==

==> picture [37 x 66] intentionally omitted <==

(ACN 088 221 078)

CONSOLIDATED HALF-YEAR FINANCIAL REPORT

31 DECEMBER 2010

==> picture [65 x 46] intentionally omitted <==

==> picture [32 x 56] intentionally omitted <==

CORPORATE DIRECTORY

Directors

Robert N. Scott – Non Executive Chairman Michael C. Bennett – Managing Director Robert E. Towner – Executive Director

Company Secretary

Darren Bromley

Company and Registered Office

Unit 9, 589 Stirling Highway Cottesloe, Western Australia 6011 Telephone: +61 8 9385 5038 Facsimile: +61 8 9385 5028 Website: www.biomd.com.au Email: info@biomd.com.au

Auditors

BDO Audit (WA) Pty Ltd 38 Station Street Subiaco, Western Australia 6008

Solicitors

Jeremy Shervington 52 Ord Street West Perth, Western Australia 6005

Bankers

National Australia Bank 1238 Hay Street West Perth, Western Australia 6005

Stock Exchange Listing

Australian Stock Exchange codes: BOD (ordinary shares) BODO (listed options)

2

==> picture [65 x 46] intentionally omitted <==

==> picture [32 x 56] intentionally omitted <==

DIRECTORS’ REPORT

The Directors present the half-yearly financial statements on the consolidated entity (referred to hereafter as the ‘Consolidated Entity’ or ‘Group’) consisting of bioMD Limited and its controlled entity for the half-year ended 31 December 2010.

DIRECTORS

The following persons were Directors of the Company during the half-year and up to the date of this report:

Robert N. Scott Michael C. Bennett Robert E. Towner

Darren Bromley was appointed Company Secretary on 24 September 2010, Caroline Bentley resigned on the same date.

PRINCIPAL ACTIVITIES

The principal activities of the Group during the half-year consisted of:

• Research and continued development of the ADAPT process used in the production of biomaterials derived from animal tissue for use as bioimplants for human use;

• Regulatory listing of the ADAPT Cardiocel cardiovascular patch device;

• Development and the commercial use of the ADAPT biomaterial in soft tissue repair; and

• Developing cooperation’s with tissue heart valve companies.

REVIEW OF OPERATIONS AND RESULTS

The consolidated operating loss for the half-year:

	31 Dec 2010 $	31 Dec 2009 $
Loss before income tax	(695,869)	(729,776)
Income tax benefit	282,198	-
Loss for the period	(413,671)	(729,776)

The company is continuing to develop a second generation ADAPT biomaterial with differing physical characteristics. The intention is to be able to “tailor make” a biomaterial for a specific surgical use.

The Phase II human clinical trial for CardioCel cardiovascular patch is complete and all the data from that study is being used to support our regulatory listing of the device by the fourth quarter 2011.

Although the human clinical trial of the Gynecel patch for anterior prolapse repair of the pelvic floor was suspended due to patient post operative infections, work is continuing with further preclinical investigations with a view to re-establish clinical evaluations.

The heart valve feasibility study completed its first milestone successfully and will now continue with functional testing of ADAPT treated valves and comparative rat implant studies that are due for completion in April.

3

==> picture [65 x 46] intentionally omitted <==

==> picture [32 x 56] intentionally omitted <==

DIRECTORS’ REPORT (continued)

Research continued with:

• A juvenile rat study comparing our ADAPT biomaterial with human cadaver derived pericardium has been completed with positive results and discussions are underway to move this to a clinical trial.

• Studies continued with determining a method of changing the pore size of our ADAPT biomaterial mesh.

• In vitro studies continue using Mesenchymal stem cells and chondrocytes.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

No significant changes have occurred in the state of affairs of the consolidated entity.

DIVIDENDS

No dividend was paid during the half-year and the Board has not recommended the payment of a dividend.

EVENTS SUBSEQUENT TO BALANCE DATE

On 15[th] February 2011, bioMD advised the ASX of an offer being made by bioMD to purchase all the shares in Allied Medical Limited, a public unlisted company that specialises in medical device sales and has a current investment and ongoing option to acquire 52% interest in Coridon Pty Ltd that is involved in DNA vaccine development. An Implementation Agreement with Allied Medical was signed on the 14[th] February.

The offer is recommended by Allied’s Board, and is subject to a greater than 90% minimum acceptance by their shareholders and is also subject to bioMD shareholder approval.

BioMD is offering Allied shareholders 428,275,968 BOD shares. On completion of the acquisition by bioMD, Allied shareholders will have 70% of the issued capital of the combined group.

The transaction will create a diversified healthcare group focused on a growing distribution business and the commercialisation of new medical technologies. The acquisition will bring together a product pipeline developing next generation vaccines and tissue engineering technologies, as well as a profitable medical device distribution business.

The new group will include Allied’s major investment in DNA vaccine development company Coridon Pty Ltd, led by Professor Ian Frazer, the developer of the Gardasil cervical cancer vaccine, and bioMD’s innovative tissue engineering and regenerative technologies for use in cardiovascular and soft tissue repair surgery.

On 17 February 2011, the Company issued 3,500,000 shares upon the exercise of 3,500,000 unlisted options at $0.06 to raise $210,000.

4

==> picture [65 x 46] intentionally omitted <==

==> picture [32 x 56] intentionally omitted <==

AUDITORS INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires our auditors, BDO Audit (WA) Pty Ltd, to provide the directors of the company with an Independence Declaration in relation to the review of the interim financial report. This Independence Declaration is set out on page 6 and forms part of this directors’ report for the half-year ended 31 December 2010.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of the Corporations Act 2001

==> picture [112 x 28] intentionally omitted <==

Robert N Scott Chairman

Dated at Perth, Western Australia this 28[th] day of February 2011.

5

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +8 6382 4600 Fax: +8 6382 4601 www.bdo.com.au

==> picture [78 x 30] intentionally omitted <==

28 February 2011

bioMD Limited 9/589 Stirling Highway COTTESLOE WA 6011

Dear Sir,

DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF BIOMD LIMITED

As lead auditor of bioMD Limited for the half-year ended 31 December 2010, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• any applicable code of professional conduct in relation to the review.

This declaration is in respect of bioMD Limited and the entity it controlled during the period.

==> picture [92 x 46] intentionally omitted <==

Phillip Murdoch Director

==> picture [39 x 18] intentionally omitted <==

BDO Audit (WA) Pty Ltd Perth, Western Australia

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

==> picture [126 x 66] intentionally omitted <==

STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

03

Note Revenue from continuing operations 2 Administrative expenses Employee benefits Depreciation expense Impairment Loss before income tax from continuing Operations Income tax benefit Loss for the half-year Other comprehensive income for the half-year Total comprehensive income for the half-year Total comprehensive income for the half-year is attributable to Equity holders of bioMD Limited Non controlling interests Loss per share (cents per share) from continuing operations attributable to ordinary equity holders of the Company Basic loss per share Diluted loss per share	Note	CONSOLIDATED 31 Dec 2010 $ 31 Dec 2009 $	CONSOLIDATED 31 Dec 2010 $ 31 Dec 2009 $	CONSOLIDATED 31 Dec 2010 $ 31 Dec 2009 $
			30,702 (645,681) (76,219) (4,671) -	40,618 (729,870) (21,335) (4,660) (14,529)
			(695,869) 282,198	(729,776) -
			(413,671) -	(729,776) -
			(413,671)	(729,776)
			(380,957) (32,714)	(643,636) (86,140)
			(413,671)	(729,776)
			Cents (0.30) N/A	Cents (0.50) N/A

The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

7

==> picture [126 x 65] intentionally omitted <==

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2010

AS AT 31 DECEMBER 2010
ASSETS Current assets Cash and cash equivalents Other receivables Total current assets Non-current assets Intangible assets Property, plant & equipment Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Borrowings Total current liabilities Non-current liabilities Provisions Total non-current liabilities Total liabilities NET ASSETS EQUITY Contributed equity Reserves Accumulated losses Capital and reserves attributable to equity holders of bioMD Limited Non controlling interest TOTAL EQUITY	Note	CONSOLIDATED 31 Dec 2010 $ 30 June 2010 $
		748,832 309,470 1,058,302 27,211 26,130 53,341 1,111,643 193,444 20,013 213,457 72,510 72,510 285,967 825,676 10,122,897 304,543 (9,596,447) 830,993 (5,317) 825,676	1,346,643 20,763
			1,367,406
			- 30,800
			30,800
			1,398,206
			84,995 20,013
			105,008
			53,931
			53,931
			158,939
			1,239,267
			10,122,817 304,543 (9,215,490)
			1,211,870 27,397
			1,239,267

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

8

==> picture [126 x 66] intentionally omitted <==

STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

	CONSOLIDATED Share Capital $ Share- based payment Reserves $ Accum Losses $ Total $ Non controlling Interest $ Total Equity $
Balance at 1 July 2009 Loss for the period Total comprehensive income for the half-year Transactions with owners in their capacity as owners Issue of options Transaction costs of share issue Adjustment from transactions arising from acquisition of non-controlling interests Balance at 31 December 2009 Balance at 1 July 2010 Loss for the period Total comprehensive income for the half-year Transactions with owners in their capacity as owners Exercise of options Balance at 31 December 2010
	8,976,132 184,630 (8,135,337) 1,025,425 72,620 1,098,045
	- - (643,636) (643,636) (86,140) (729,776)
	- - (643,636) (643,636) (86,140) (729,776) - 50,000 - 50,000 - 50,000 (6,792) - - (6,792) - (6,792) - - 94,158 94,158 92,670 187,188
	8,969,340 234,630 (8,684,815) 519,155 79,150 598,665
	10,122,817 304,543 (9,215,490) 1,211,870 27,397 1,239,267
	- - (380,957) (380,957) (32,714) (413,671)
	- - (380,957) (380,957) (32,714) (413,671) 80 - - 80 - 80
	10,122,897 304,543 (9,596,447) 830,993 (5,317) 825,676

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

9

==> picture [126 x 66] intentionally omitted <==

STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

Cash flows from operating activities Receipts from customers Payments to suppliers Interest received Net cash outflow from operating activities Cash flows from investing activities Payments for property, plant & equipment Payments for intangible assets Net cash outflow from investing activities Cash flows from financing activities Proceeds from share issue by subsidiary entity Share issue transaction costs Net cash inflow from financing activities Net decrease in cash held Cash at the beginning of the half-year Cash at end of the half-year		CONSOLIDATED Half-year 31 Dec 2010 $ Half-year 31 Dec 2009 $	CONSOLIDATED Half-year 31 Dec 2010 $ Half-year 31 Dec 2009 $
		- (590,884) (590,884) 22,645 (568,239) (3,457) (27,211) (30,668) 1,096 - 1,096 (597,811) 1,346,643 748,832	68,834 (798,072)
			(729,238)
			12,426
			(716,812)
			(2,420) (14,529)
			(16,949)
			187,190 (6,792)
			180,398
			(553,363)
			1,249,650
			696,287

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

10

==> picture [126 x 66] intentionally omitted <==

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The half-year financial statements are general-purpose financial statements, which have been prepared in accordance with the Corporations Act 2001 and Accounting Standard AASB 134 Interim Financial Reporting . The half-year financial statements have been prepared in accordance with the historical cost convention.

These half-year financial statements do not include all the notes of the type normally included within the annual financial statements and accordingly, this report should be read in conjunction with the annual financial statements for the year ended 30 June 2010 and any public announcements made by bioMD Limited during the interim period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

2. REVENUES

Half-year 2010 $ Revenue from continuing operations Finance revenue 21,702 Grant revenue - Sub-lease rental income 9,000 Total revenue from continuing operations 30,702 Breakdown of Finance Revenue Bank interest 21,702 21,702 3. EXPENSES Loss for the half-year before income tax includes the following specific expenses: Consultancy costs 394,507 Rental expense relating to operating leases 37,510 Depreciation – Plant and equipment 4,671 Impairment of Intangibles – Patents - Employee benefits expense Salary and wages 45,665 Leave provisions 24,182 Other benefits 6,371	Half-year 2009 $
	10,733 23,885 6,000
	40,618
	10,733
	10,733
	394,000 13,035 4,660 14,529 28,910 (30,860) 23,285

11

==> picture [126 x 65] intentionally omitted <==

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

4. SUBSEQUENT EVENTS

On 15[th] February 2011, bioMD advised the ASX of an offer being made by bioMD to purchase all the shares in Allied Medical Limited, a public unlisted company that specialises in medical device sales and has a current investment and ongoing option to acquire 52% interest in Coridon Pty Ltd that is involved in DNA vaccine development. An Implementation Agreement with Allied Medical was signed on the 14[th] February.

The offer is recommended by Allied’s Board, and is subject to a greater than 90% minimum acceptance by their shareholders and is also subject to bioMD shareholder approval.

BioMD is offering Allied shareholders 428,275,968 BOD shares. On completion of the acquisition by bioMD, Allied shareholders will have 70% of the issued capital of the combined group.

The transaction will create a diversified healthcare group focused on a growing distribution business and the commercialisation of new medical technologies. The acquisition will bring together a product pipeline developing next generation vaccines and tissue engineering technologies, as well as a profitable medical device distribution business.

The new group will include Allied’s major investment in DNA vaccine development company Coridon Pty Ltd, led by Professor Ian Frazer, the developer of the Gardasil cervical cancer vaccine, and bioMD’s innovative tissue engineering and regenerative technologies for use in cardiovascular and soft tissue repair surgery.

On 17 February 2011, the Company issued 3,500,000 shares upon the exercise of 3,500,000 unlisted options at $0.06 to raise $210,000.

5. SEGMENT INFORMATION

Description of segments

The Group has adopted AASB 8 Operating Segments from 1 July 2009 whereby segment information is presented using a management approach, i.e. segment information is provided on the same basis as information as used for internal reporting purposes by the chief operating decision makers (board of directors that make key strategic decisions).

12

==> picture [126 x 66] intentionally omitted <==

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

5. SEGMENT INFORMATION (continued)

Management has determined that there are two identifiable reportable segments as follows:

• Bioimplants operations of Celxcel Pty Ltd; and

• Medical therapy products.

(The medical therapy products are not deemed material for purposes of disclosure and are not reported separately here).

Total segment revenue Net profit (loss) before income tax Segment assets Segment liabilities	BIOIMPLANTS Dec 2010 $ Dec 2009 $
	155 24,761 (140,781) (380,312) Dec 2010 $ Jun 2010 $
	352,813 177,576 98,991 65,188

Performance is measured based on segment result before tax.

The reconciliation of segment information to loss for the half-year is as follows:

Segment profit (loss) Other revenue Administration costs Depreciation Impairment Share based payments Income tax benefit Loss for the half-year	CONSOLIDATED 2010 $ 2009 $ (140,781) (380,312) 30,548 15,857 (582,650) (311,889) (2,986) (2,828) - (604) - (50,000) 282,198 - (413,671) (729,776)	CONSOLIDATED 2010 $ 2009 $ (140,781) (380,312) 30,548 15,857 (582,650) (311,889) (2,986) (2,828) - (604) - (50,000) 282,198 - (413,671) (729,776)
		(380,312) 15,857 (311,889) (2,828) (604) (50,000) -
		(729,776)

6. DIVIDENDS

No dividends have been declared or paid during the period.

13

==> picture [126 x 66] intentionally omitted <==

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

7. COMMITMENTS

At 31 December 2010 the Group had no formal commitments however had undertaken to review a short term (6 month) office lease. Subsequent to balance date, the 6 month lease was entered into with a total commitment of $8,775.

8. GOING CONCERN

The Consolidated Entity has incurred a net loss after tax for the period ended 31 December 2010 of $413,671 (2009: $729,776) and has experienced net cash outflows from operating activities of $568,239 (2009: $716,812). As at the 31 December 2010, the Group had net current assets of $825,676 (2009: $598,665).

The Directors have prepared the financial statements on the basis of going concern, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal course of business. The ability of the Company to continue as a going concern will be dependent on the ability to raise further funds as required to facilitate the ongoing research and development of its ADAPT process and medical therapy products.

14

==> picture [125 x 65] intentionally omitted <==

DIRECTORS’ DECLARATION

In the Directors’ opinion:

• (a) the financial statements of the consolidated entity are in accordance with the Corporations Act 2001; including:

• (i) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 and other mandatory professional requirements, and

• (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and of its performance for the half-year ended on that date; and

• (b) there are reasonable grounds to believe that bioMD Limited will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Directors.

==> picture [105 x 27] intentionally omitted <==

ROBERT N. SCOTT Chairman

Perth, Western Australia

Dated this 28[th] day of February 2011

15

==> picture [77 x 30] intentionally omitted <==

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF BIOMD LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of bioMD Limited, which comprises the statement of financial position as at 31 December 2010, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the disclosing entity and the entity it controlled at the half-year’s end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the disclosing entity are responsible for the preparation of the half-year financial report in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of bioMD Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of bioMD Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Error! Unknown document property name.Error! Unknown document property name. Legislation (other than for the acts or omissions of financial services licensees) in each State or Territory other than Tasmania.

==> picture [78 x 30] intentionally omitted <==

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of bioMD Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2010 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001 .

Emphasis of Matter

Without qualifying our conclusion, we draw attention to Note 8 in the financial report which indicates that the consolidated entity incurred a net loss of $413,671 during the period ended 31 December 2010 and has experienced net cash outflows from operating activities of $568,239. These conditions, along with other matters as set forth in Note 8, indicate the existence of a material uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial statements.

BDO Audit (WA) Pty Ltd

==> picture [74 x 69] intentionally omitted <==

Phillip Murdoch Director

Perth, Western Australia Dated this 28th day of February 2011