BABYLON PUMP & POWER LIMITED — Capital/Financing Update 2008

Aug 3, 2008

August 4, 2008

ASX ANNOUNCEMENT

IM MEDICAL SECURES FUNDING FROM EQUITY STANDBY FACILITY

IM Medical Ltd (ASX:IMI) is pleased to announce it has signed a $5 million Standby Subscription Agreement arranged by Fortrend Securities Pty Limited.

Under the facility, which has a term of 3 years, Fortrend has committed to provide up to $5 million to IM Medical to be drawn down at IM Medical’s discretion by the issue of shares to Fortrend. IM Medical has the right but not the obligation to utilise the facility and determines the timing of any drawdown. The price at which shares are issued will be a 10% discount to the average closing price calculated over the 5 trading day period following a drawdown notice.

The facility will provide funds as required and provide management with more freedom to promote the Intelliheart test through its Consumer and Workplace strategy as well as allowing it to finalise the development of its innovative Cardanal technology.

Company chairman Dipak Sanghvi said that it was a credit to the company that Fortrend, after detailed review of the company and its technologies, made the decision to offer the company this financing facility.

. Roman Najdecki Company Secretary

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