COGSTATE LTD — Earnings Release 2012

Aug 20, 2012

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ASX Announcement

Melbourne, 21 August 2012

CogState records FY12 profit of $2.45 million

CogState Ltd (ASX:CGS) has recorded revenue growth of 48% and a profit of $2.45 million for FY12, a significant turnaround from the NPAT loss of $0.85 million recorded in FY11.

CogState now supports three distinct business units, each with the potential for strong revenue growth:

• Clinical Trials - CogState’s technology and associated services are used by pharmaceutical and biotechnology companies to quantify the effect of drugs or other interventions on human subjects participating in clinical trials. In FY12, there were $13.76m of new contracts signed and we expect further growth in FY13.

• Axon Sports - CogState’s technology is used to monitor and manage sports related concussion. In addition, the commercial launch of computerised cognitive assessment tools and skills training for athletes is planned for FY13.

• Primary care physicians – CogState’s technology can be used to assess cognitive decline in patients suffering from Alzheimers disease. The first sales from the exclusive distribution agreement with Merck Canada are expected in 1H FY13.

Key Operational Highlights

• Acquired the remaining 50% interest in the Axon Sports joint venture, resulting in Axon Sports becoming a 100% owned subsidiary

• A new version of the testing software was developed to enable the CogState technology to utilise new technology platforms as well as reengineering our code base to enable use of cloud architecture

• New contract wins for clinical trials with major international pharmaceutical companies

• Entered into a five year promotional agreement with Merck Canada Inc and Merck Sharpe & Dohme Corp (“Merck”), providing Merck with an exclusive right to market and promote the CogState test to primary care doctors in Canada

FY12 Highlights

hlights
	FY12 ($M)	FY11 ($M)	change ($M)
Revenue from ops	12.01m	8.13m	Up 3.88m
EBITA	2.90m	(1.02m)	Up 3.92m
EBITA adjusted	1.49m	(1.02m)	Up 2.51m
NPAT	2.45m	(0.85)m	Up 3.30m
EPS	3cps	(1cps)	Up 4cps
Cash on hand	4.66m	3.31m	Up 1.35m

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CogState CEO Brad O’Connor said: “We are very pleased with our FY12 financial results which clearly demonstrate our successful transition from an R&D company into a commercial, revenue generating business. We are focussed on establishing CogState products as the global standard for measuring, monitoring and improving cognition.”

About CogState

CogState Ltd (ASX: CGS) specialises in the development and commercialisation of rapid, computerised tests of cognition (brain function).

In the clinical drug trial market, CogState technology and associated services are used by pharmaceutical and biotechnology 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 top pharmaceutical companies including Pfizer, AstraZeneca, Bristol-Myers Squibb, GlaxoSmithKline, Merck, Johnson & Johnson, Novartis, Lundbeck, Dainippon Sumitomo, Targacept, Otsuka, and Servier.

Axon Sports is dedicated to protecting and training the Athletic Brain. Our goal is simple - to transform how athletes protect and train their brains for sport. Axon Sports launched in August of 2010 with the Axon CCAT, a baseline concussion management system that is currently used by major professional teams and leading medical providers to safeguard the cognitive health of athletes of all ages.

While athlete safety is of critical concern, Axon Sports was founded with a much broader goal: transforming the way athletes train for sport. We are currently developing products to train the athletic brain and accelerate the curve of skill acquisition. Today, athletes develop key cognitive skills through practice time and game experience. However, we believe there are ways to isolate and train high-speed decision skills off the field or court, through 'athletic brain training'. Axon is developing new training tools that will speed up this learning process and accelerate the acquisition of athletic expertise. Using Axon programs, athletes can get added 'mental reps' without taxing the body or risking injury.

In June 2012, CogState entered into an agreement with Merck Canada Inc. providing it with the exclusive right to market and promote the CogState Test to primary care physicians in Canada. The first commercial sale is expected to occur before the end of 2012. In the primary care or general practice setting, the CogState Test assesses cognition in patients and the reports generated on the basis of this assessment can allow physicians to identify subtle changes that could be indicative of the early stage of a neurodegenerative disease, such as Alzheimer’s disease. The CogState Test can also be used to monitor changes in cognitive function following concussion or after treatment with drugs or other types of interventions.

For further information:

Please contact:

Rebecca Wilson

Buchan Consulting +61 3 9866 4722 or 0417 382 391 rwilson@buchanwe.com.au

Brad O’Connor CogState Chief Executive Officer +61 3 9664 1300 or 0411 888 347 boconnor@cogstate.com

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