COGSTATE LTD — Capital/Financing Update 2014

Oct 21, 2014

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ASX Announcement

Wednesday, October 22, 2014

Cogstate enters into Letter Of Intent for sale of Axon Sports training business

MELBOURNE, AUSTRALIA: Cognition technology company Cogstate (CGS.ASX) has today announced that it has entered into a Letter Of Intent (LOI) for the sale of the Axon Sports training business.

On June 6, 2014, Cogstate foreshadowed that it would seek to divest of the Axon Sports training business and was seeking expressions of interest for the business. It was noted at the time that the sale would not include Cogstate’s sport concussion testing product. The decision to divest of the Axon Sports training business was based on a goal of focussing on Cogstate’s core businesses and reducing cash burn.

Cogstate has today entered into a non-binding LOI that is expected to result in execution of final documents for the sale of the business within the next 60 days.

Under the terms of the LOI, Cogstate will not receive any upfront consideration but will be entitled to an undisclosed percentage of all revenue over the next 5 years. Once the purchase is complete, the purchaser will assume all ongoing costs and liabilities of the Axon Sports training business, including all personnel, development, marketing and promotional costs.

Cogstate will update the market further upon execution of final documents for the sale.

For further information contact:

Brad O’Connor Tel: +61 (0)411 888 347 Email: boconnor@cogstate.com

About Cogstate

Cogstate Ltd (ASX: CGS) is a multi-faceted cognitive assessment and training company, focused on the development and commercialisation of rapid, computerised tests of cognition (brain function). It has three distinct business units:

Clinical Trials: 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.

Precision Recruitment: Cogstate technology is used by pharmaceutical companies to efficiently identify people in the community who may be appropriate for inclusion in a clinical trial on the basis of a web-based cognitive assessment.

Concussion: In the area of sports related concussion, Cogstate’s technology has been used by a number of highly regarded institutions and sporting organisations around the world for almost 10 years.

Healthcare: In the primary care or general practice setting, COGNIGRAM ™ 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.