COGSTATE LTD — Capital/Financing Update 2009

Oct 5, 2009

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ASX Announcement

Melbourne, Tuesday 6[th] October 2009

CogState Business Update: Sales Contracts

Highlights:

• US$3.18 million sales contracts signed during the September quarter

• US$6.06 million sales contracts signed during the last 2 quarters

• Sales prospects and trading conditions remain strong

CogState (ASX: CGS) today announced that during the quarter ended 30 September 2009 a total of 11 sales contracts have been signed with a combined value of US$3.18 million (AUD$3.73 million).

The value of contracts signed, measured in US$, is an improvement of 26% of the September 2008 quarter and an 11% improvement on the most recent June 2009 quarter.

CogState provides its products and services predominantly to large pharmaceutical companies. During the September quarter, contracts were signed with GlaxoSmithKline, AstraZeneca, Pfizer, Targacept, and others.

The demand for CogState services continues to grow and general trading conditions for CogState remain strong. CogState presently has a good number of active proposals pending review by prospective customers.

In the first few days of October, CogState has already signed one sales contract worth US$0.5 million (AUD$0.58 million), which is in addition to the September quarter numbers reported above and takes the total value of contracts signed since 1 July 2009 to US$3.68 million (AUD$4.31 million).

Mr Brad O’Connor, Chief Executive Officer of CogState said: “This is a great result and demonstrates the increased brand awareness and commercial validation that we are gaining in the market. The increasing demand for our technology appears to indicate that pharmaceutical companies are increasing their research and development spending again in line with the recovering global economic conditions.”

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In the six months from 1 April 2009 to 30 September 2009, CogState signed 18 sales contracts with a combined value of US$6.06 million (AUD$7.52 million). As most sales contracts are denominated in US$, the recent strength of the Australian dollar has impacted negatively on the AUD$ value of sales contracts. During the quarter ended 30 June 2009, the average exchange rate applied to sales contracts was AUD$0.76, compared to an average of AUD$0.85 for the September 2009 quarter.

The graph below shows the value of sales contracts signed, per quarter, in both US$ and AUD$.

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Outlook and Profit Guidance

CogState will hold its Annual General Meeting of shareholders on Wednesday 21[st] October at 1pm. At that time, in addition to discussing the financial results for the year to 30 June 2009, CogState management will also provide a report of financial results for the 2010 financial year to date, including initial profit guidance for the first half of the financial year.

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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, Johnson & Johnson, Novartis, Lundbeck, Dainippon Sumitomo, Otsuka, Servier, along with a number of other organisations. For additional information:

For further information:

Brad O’Connor Chief Executive Officer CogState Ltd Tel: 03 9664 1300 Mob: 0411 888 347 Email: boconnor@cogstate.com