COGSTATE LTD — Capital/Financing Update 2008

Feb 28, 2008

CogState Ltd ABN 80 090 975 723

Level 7 21 Victoria Street Melbourne Vic 3000 Australia

ASX Announcement

Melbourne, 29[th] February 2008

CogState Business Update

Key Points

• 280% growth in the value of quotes issued year to date

• Cash receipts from customers for January and February ($1.03m) exceeded cash receipts for the first half of the financial year

Increased Business Activity

CogState has experienced unprecedented demand for quotes over recent months. In the month of February alone, CogState has issued 10 quotes with a combined value of A$2.7 million.

The graph below shows that for the period 1 July 2007 to 28 February 2008, CogState has issued 33 quotes with a combined value of A$5.8 million. This compares to the previous corresponding period when CogState had issued 15 quotes (120% growth) with a combined value of A$1.5 million (280% growth).

Page 1 of 3

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

CogState has previously provided details of the number and value of quotes issued as a means of indicating general business activity. While the value of quotes issued is not necessarily transferable to the value of contracts signed, it is indicative of demand for CogState services within the clinical trials market.

The relatively larger increase in the value of quotes issued reflects the fact that CogState is being asked to tender for an increased number of later stage clinical trials (phase II & III) with a larger contract value.

Cash Receipts From Customers

Cash receipts from customers during January and February have been excellent, with A$1.03 million received since 1 January 2008. This compares to A$1.0 million received from customers for the six months ended 31 December 2007.

Half Year Financial Results

CogState today lodged its financial report for the half year ended 31 December 2007.

As indicated last month, the report showed that recognised sales revenue for the half year to 31 December 2007 was $1.64m ($0.9m for the December quarter).

The following graph shows the historical trend of half yearly sales revenue for CogState:

Half Yearly Recognised Sales Revenue

==> picture [37 x 199] intentionally omitted <==

----- Start of picture text ----- 1,8001,6001,4001,2001,000800600400200-$'000----- End of picture text -----

==> picture [405 x 231] intentionally omitted <==

Page 2 of 3

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

The half year financial results show expense control during the period. Total operating expenses for the half year showed an increase of 6.1% from the previous corresponding half year.

Employment costs accounted for 69.2% of total operating expenses for the half year ended 31 December 2007. Full time equivalent employees at 31 December 2007 totalled 22, which was unchanged from 30 June 2007 and compared to 17 at 31 December 2006.

The total loss for the period of $604,463 was a 36.2% improvement on the previous corresponding period. More detail can be found in the financial report lodged with the ASX today.

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

Page 3 of 3