COGSTATE LTD — Capital/Financing Update 2008

Jun 18, 2008

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CogState Ltd ABN 80 090 975 723 Level 7 21 Victoria Street Melbourne Vic 3000 Australia

ASX Announcement

Melbourne, 19[th] June 2008

50% Revenue Growth Expected FY08

Revenue growth driven by strong increase in sales contracts

• CogState will record significant revenue growth in the 2008 financial year through major increases in both the number (112% increase) and cumulative value (147% increase) of sales contracts signed

• With contract terms spanning 6 months to more than 2 years, many of the contracts signed this financial year will position CogState for further revenue growth in financial year 2009

• Later stage studies (Phase 2 or 3) generate more revenue for CogState than Phase 1 studies. CogState has signed 12 sales contracts for Phase 2 studies this financial year, compared to none in FY07.

• 100% growth in the number of customers using CogState technology and associated services. The list of new CogState customers includes a large international pharmaceutical company that has signed 9 contracts with a cumulative value in excess of A$1.18m this financial year.

CogState Ltd (ASX:CGS) announced today that it expected to record revenue growth in the order of 50% this financial year on the back of a large increase in the number and value of sales contracts signed. CogState has been able to increase its customer base during the financial year, whilst also continuing to service existing customers.

Many of the contracts signed this financial year, especially those signed in the second half of the financial year, will continue to generate revenue for CogState into financial year 2009 and, in some cases, beyond. The value of the contracts on hand will put CogState in a strong position for continued revenue growth into financial year 2009.

Of the 36 sales contracts signed this financial year, 12 of them are in respect of Phase 2 studies. Later stage studies (phase 2 and 3) typically generate more revenue for CogState than Phase 1 studies. The increase in the number of Phase 2 studies has meant an increase in the average value of contracts signed this financial year.

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CogState Ltd ABN 80 090 975 723 Level 7 21 Victoria Street Melbourne Vic 3000 Australia

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The following table provides further information in respect of the reported growth in contracts signed:

	FY 2008 (YTD)	FY 2007	Growth
Value of contracts	A$4.82m	A$1.95m	147%
No. of contracts	36	17	112%
No. of customers	14	7	100%
Phase 1 studies	19	11	73%
Phase 2 studies	12	0	N/A
Phase 3+ studies	1	1	0%
Other Studies	4	5	-20%

The graph below shows the increase in the number and value of contracts signed this financial year compared to the previous financial year:

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CogState Ltd ABN 80 090 975 723

Level 7 21 Victoria Street Melbourne Vic 3000 Australia

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Chief Executive Officer, Brad O'Connor commented "CogState continues to experience significant demand for its cognition testing technology and associated services which has translated into contracts across the clinical trial spectrum. Our rate of conversion from quotes issued to actual contracts signed remains strong. We are particularly pleased that as our customers have become familiar with our product and service offering, they are utilising our systems in higher value, later stage clinical trials such as Phase 2."

CogState expects to report fourth quarter revenues and cash flows on July 25.

About CogState

CogState Ltd (ASX: CGS) specialises in the development and commercialisation of rapid, computerised tests of cognition (brain function). The tests are sold to pharmaceutical, biotechnology, nutraceutical and functional food companies to quantify the effect of drugs or other interventions on human subjects participating in clinical trials.

Since sales into the clinical trials market began in 2004, CogState has secured agreements with organisations including Pfizer, AstraZeneca, GlaxoSmithKline, Merck, Abbott Laboratories, Centres for Disease Control (USA), ALZA Corporation (a member of the Johnson and Johnson group), Lundbeck and Organon USA. CogState is currently expanding its existing activities in the US and European clinical trial markets.

For additional information:

Brad O’Connor Chief Executive Officer

CogState Ltd.

03 9664 1300 Mob: 0411 888 347 boconnor@cogstate.com

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