BTC HEALTH LTD — Capital/Financing Update 2007

Jul 10, 2007

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NEURODISCOVERY SHAREHOLDERS APPROVE PLACEMENT TRIGGERING SECOND TRANCHE INVESTMENT BY BIOTECH CAPITAL

11 July 2007. Biotech Capital Limited (ASX: BTC) is pleased to announce that shareholders in Neurodiscovery Ltd (ASX:NDL) have approved the second tranche investment by BTC as originally described in an ASX release issued to the market on 30 May 2007.

The second tranche of 4,123,530 shares will be issued at a price of $0.17 per share – the same as the Tranche 1 shares.

This will bring BTC’s total investment in NDL to $1,500,000 represented by 8,823,530 shares.

BTC is now the largest shareholder in Neurodiscovery with a stake of approximately 15.4%.

The funds raised by Neurodiscovery will be used to progress the clinical development of its drug leads and is expected to be sufficient to carry the company into the commencement of Phase II trials in mid-2008.

The key factors why we are attracted to Neurodiscovery include:

• Pain is an important pharmaceutical drug market

• NDL’s lead program (NSL 043) is a re-profiled compound. That is, this drug was originally targeting a different indication (non-pain) and has extensive data in humans up to a Phase III trial level. Whilst it was not effective in its original target indication, the team at NDL believed it could be developed into a very good pain drug. The importance of having previously been in Phase III trials is that it would appear the drug is safe in man. This means the confidence in successfully completing the current Phase I trial would be much higher than would otherwise be the case. In addition, extensive additional pre-clinical data has been generated by NDL providing further confidence on the safety and efficacy potential of NSL 043.

• Strong relationship with Sosei – a leading Japanese biopharmaceutical company to jointly develop their lead program

• NDL’s team have identified a pipeline of other molecules all targeting pain and leveraging off their expertise in the area helping to diversify clinical risk.

• NDL is in a fairly unique position for a small biotech company of owning a growing, profitable fee for service business. This is expected to generate revenues of approximately A$2.5 million in the next financial year. The customer base is global in nature and includes both pharmaceutical and biotechnology companies.

• From a financial perspective we consider the company to be significantly under-valued with a compelling risk/return profile. The profitable service business provides significant downside protection to investors in the event the clinical programs are not successful.

• With a market capitalisation of approximately $10 million we believe there is significant upside potential when compared to other clinical-stage companies listed on the Australian Stock Exchange and other markets around the world.

Biotech Capital Limited ABN 45 091 979 172 www.biotechcapital.com.au

Level 9, The Quadrant Building T +61 8 9327 1764 1 William Street F +61 8 9327 1778 Perth WA 6000, Australia

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About BioTech Capital Ltd

BioTech Capital Ltd (“BTC”) is one of Australia’s largest life-science focused private equity funds. With approximately $9 million in investment funds still available, the company is well placed to continue to develop a diversified portfolio of high quality Australian life-science investments.

BTC currently has investments in a diverse group of Australian life-science companies including Alchemia, Biocomm, Continence Control Systems, Neurodiscovery, Pacific Knowledge Systems, Phylogica, Sensear, Starpharma, Stem Cell Sciences and XRT. As a registered Pooled Development Fund (PDF), investors are generally exempt from tax on capital gains and income.

BTC is listed on the Australian Stock Exchange (Code: BTC) and is managed externally by Titan BioVentures Management (www.titanbioventures.com).

Additional information can be found at www.biotechcapital.com.au

Biotech Capital Limited ABN 45 091 979 172 www.biotechcapital.com.au

Level 9, The Quadrant Building 1 William Street Perth WA 6000, Australia

T +61 8 9327 1764 F +61 8 9327 1778