BABYLON PUMP & POWER LIMITED — Capital/Financing Update 2009

Jun 4, 2009

05 June 2009

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ASX ANNOUNCEMENT

Update on Radiology acquisition

IM Medical Limited (IMI) previously advised the market on its proposal to acquire the Radiology and Imaging business of the Mark Scott Group trading as Melbourne Specialist Imaging and advised that the Notice of General Meeting and Explanatory Memorandum would be issued to shareholders at the end of May 2009.

The Independent Valuer has requested further information from the Mark Scott Group which will further delay the finalisation of the Independent Expert’s Report and other documentation and consequently, the Notice of General Meeting and Explanatory Memorandum is not likely to be submitted to shareholders until at least mid June 2009.

The Company regrets the delay, but is conscious that the Independent Valuer must have access to all the available information so that he can form his opinion.

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Roman Najdecki Company Secretary.