COMPUMEDICS LIMITED — Capital/Financing Update 2014

Mar 10, 2014

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ASX/Media Release 11 March 2014

**Compumedics

gets boost in China with key $2.0m contracts**

Highlights: Key growth focus on Emerging Markets

• **Compumedics continues to expand its Chinese market presence, booking a further $1.5m (USD1.4m) order for sleep diagnostic and neurological equipment from its long-­‐term distributor in China, Beijing Bestmed.

  A further $0.5m (EUR0.3m) order for trans cranial Doppler equipment from Bieke, DWL’s long-­‐term distributor in China, has also been booked.**

• Compumedics Group sales to China for FY2014 were 25% higher than the prior corresponding half-­‐year. Sales growth will be maintained in the second half of the year.

• Compumedics has, over a 20-­‐year period, become a major supplier of China sleep diagnostic, neurology and ultrasonic Doppler blood-­‐flow monitoring systems, with an unsurpassed array of key-­‐opinion-­‐leader reference-­‐centers now established with Compumedics installations across China and Hong Kong.

Compumedics Limited (ASX: CMP) is pleased to announce that its long-­‐term distributor in China, Beijing Bestmed, has placed new orders totaling approximately $1.5 million (≈USD1.4 million) for the purchase of sleep diagnostic and neurological equipment.

As a result of its successful and long-­‐established partnerships in China, Compumedics has grown sales, and continues to accelerate growth in this critical emerging market. This contract is a result of the strong relationship between Compumedics and Beijing Bestmed and follows last year’s decision by Bestmed to take a 3% stake in Compumedics’ equity.

Compumedics remains focused on growing the Group through:

• Expansion of sales of the Company’s existing products into emerging markets particularly China; and

• • Continuing the initial penetration of the neuro-­‐diagnostic market, particularly the US, with Compumedics range of neuro-­‐diagnostic products, including the Neuvo ® LTEM (long-­‐term EEG-­‐ monitoring) system

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**In

commenting on the further boost to Compumedics’ China business, Dr. David Burton, Chairman and CEO, said:**

"We have spent many years in China with our Chinese partners, building a very targeted and selective base. As a result, Compumedics well positioned to capture the growth that comes from an increasing awareness in China of the impact of poor sleep and the desire to be diagnosed and treated.

“In 2012 the China Daily noted that more than 40% of the Chinese population suffered from some form of sleep disorder, with less than 1% of those people having been diagnosed or treated. More recent data claims that the cultural tendency to work hard in China and view 9 hours sleep as a sign of laziness will only lead to an increasing incidence of sleep disorders in China.”

**ABOUT

COMPUMEDICS**

Compumedics Limited was founded in 1987 by current Chairman/CEO Dr. David Burton and today is a global leader in the design and manufacture of diagnostic technologies for sleep disorders, neurophysiology and cardiology. In 1987 Compumedics established Asia Pacific's first fully computerized sleep laboratory. Compumedics holds 80% share of the Australian sleep-­‐diagnostic market, and has a major and rapidly growing presence in the US, European and Asian marketplaces for its sleep, neurological, and Doppler blood-­‐flow diagnostic monitoring devices. In 1995 the company was selected to supply equipment to the US Sleep Heart Health Study, the world's largest sleep study of its kind, with over 8,000 participants scheduled by 2008.

With headquarters in Melbourne, Australia and offices in the United States and Europe, its products are distributed in over 50 countries. In 1998 Compumedics was awarded the overall Australian Exporter of the Year. In 2000 Compumedics was listed on the Australian Stock Exchange. In 2002 , Compumedics acquired US-­‐ based Neuroscan -­‐ the world's leading supplier of instruments for brain research. In the US -­‐ the world's largest medical device market -­‐ Neuroscan holds around 90% of the market for brain-­‐ research products. In 2003 Compumedics was awarded the Frost & Sullivan Award for Market Expansion Strategy. In 2004 , Compumedics acquired Germany-­‐based DWL Elektronishe GmbH, enabling Compumedics to expand its global operations into the neurovascular and cardio-­‐vascular diagnostic fields. In 2006 , Compumedics was awarded the Frost and Sullivan Technology Leadership award for its innovative Somte® recorder product. In 2007 , Compumedics and its Chairman were inducted into the Victorian Manufacturing Hall of Fame. In 2008 the DWL division received a top 100 German Innovation award. With 20,000 systems installed globally across the finest hospital, universities and clinics Compumedics sales have grown more than 4-­‐fold from $9 million (1999) to $39 million (2008). In 2009 Compumedics was awarded a design award for its GRAEL® PSG/EEG premium laboratory-­‐based product. In 2010 Compumedics was recognized by the Australian Innovation Government and Industry body as one of Australia's Top 100 Health Innovators through its world leading devices for sleep diagnostics.

In 2011, Compumedics was chosen, as one of only 25, innovative Australian companies by the Australian Governments Department of Innovation, Industry, Science and Research (Industry). In 2012 Compumedics won several key-­‐opinion-­‐leader sites for the instnallation of it newly released long-­‐term EEG monitoring (LTEM) equipment. In 2013 the Company refinanced the Group to better facilitate its on-­‐going business operations.

This included an equity issue to Beijing Bestmed, it long-­‐term partner in China.

For further background please visit: www.compumedics.com

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For further information please contact:

Dr David Burton , Executive Chairman, CEO Compumedics Limited T: + 61 3 8420 7300 For investor relations and media enquiries please contact: F: +61 3 8420 7399

Mr David Lawson , Executive Director, CFO Compumedics Limited T: + 61 3 8420 7300 F: +61 3 8420 7399

Rod North , Managing Director, Bourse Communications PtyLtd T: (03) 9510 8309, M: 0408 670 706 E: rod@boursecommunications.com.au