COGSTATE LTD — Capital/Financing Update 2009

Jul 28, 2009

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ASX Announcement

Melbourne, Wednesday 29[th] July 2009

CogState Reports Positive Cash Flow for FY09

Highlights:

• $5.1 million of combined cash and debtors at 30 June 2009

• During the financial year, CogState recorded:

  • Increase in cash reserves of $2.0 million

  • Net operating cash inflow of $1.1

  • Increase in trade debtors of $1.5 million

• Continued favourable trading conditions, with more than $4 million sales proposals currently outstanding

All quoted figures are stated in Australian dollars.

CogState (ASX:CGS) today released details of its cash flows for the year to 30 June 2009.

At 30 June 2009, CogState had combined cash and debtors balances totalling $5.1 million.

Cash reserves at 30 June 2009 totalled $3.0 million. This is an increase of $2.0 million from the $1.0 million of cash reserves held at 30 June 2008. The increase in cash reserves was driven by a net cash inflow from operations of $1.1 million along with the proceeds of the capital raising undertaken by CogState in July and August 2008.

Trade debtors increased to $2.1 million at 30 June 2009, an increase of $1.5 million from the 0.6 million outstanding at 30 June 2008. All debts are considered to be recoverable under normal trading terms, with 99% of the trade debts being less than 30 days old. CogState did not write off any debts during the year to 30 June 2009.

CogState had current liabilities of $1.5 million at 30 June 2009 and no long term liabilities. CogState has no external debt. At 30 June 2009, Net Assets totalled $4.9 million, an increase of $3.0 million from the $1.9 million Net Assets at 30 June 2008.

The graph below shows the trailing twelve months cash flow from operations and debtors movements, per quarter. The graph demonstrates the business turnaround that began in the June 2008 quarter and has continued throughout the 2009 financial year.

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----- Start of picture text ----- Trailing 12 Months Operating Cash Flows3,000,0002,500,0002,000,0001,500,0001,000,000500,000--500,000-1,000,000-1,500,000-2,000,000Debtors movementCash flow from operationsCash flow from operations + debtors movementJun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09----- End of picture text -----

Trading Outlook

CogState continues to experience positive trading conditions, with more than $4 million of sales proposals currently outstanding.

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:

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