BABYLON PUMP & POWER LIMITED — Capital/Financing Update 2009

Sep 30, 2009

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01 October 2009

ASX ANNOUNCEMENT

Update on Radiology acquisition

At its General Meeting held on 10 September 2009, shareholders of IM Medical Limited (IMI) approved the acquisition of the Radiology and Imaging business of the Mark Scott Group trading as Melbourne Specialist Imaging subject to a number of Conditions Precedent being met.

Since that meeting, management of both parties have been working diligently to ensure that all conditions precedent are met to complete the acquisition.

At today’s date a good number of the conditions have been met and the company is confident that the remaining conditions will be met over the next week.

The Company regrets the delay and will advise the market when all conditions have been met and the acquisition is completed.

Roman Najdecki Company Secretary.

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