CRYOSITE LIMITED — AGM Information 2011

Nov 6, 2011

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ASX RELEASE ‐ MONDAY 7 NOVEMBER 2011

Chairman’s Address to Shareholders at the Annual Meeting of Members held in Sydney on Monday 7 November 2011

Good morning ladies and gentlemen and welcome to the 2011 Annual General Meeting of shareholders of Cryosite Limited.

Firstly, I would like to introduce myself; I am Theo Onisforou, Chairman of Cryosite.

As you know, my job today is to provide you with a review of the company’s results for last year, to highlight the areas of most interest, and most importantly to give you an insight into where the Board and management team believe the company is heading.

Firstly, I would like to focus on a review of last year’s key financial indicators:

SALES:

The total sales revenue for the year was $6,432,973 which was an increase of 7.8% over last year’s figure ($5,968,601).

PROFIT:

The profit for the year was $334,305. This compares with $4,612 last year. So, it was quite a significant increase.

CASH:

Cash on hand at 30 June 2011 was $2,910,943. Cash at 31 October was $3,463,701

During my address at last year’s AGM, I highlighted the importance that we placed on the development of the South Granville site and our expectations that it would play a pivotal part in the next stage in Cryosite's future success.

I am delighted to confirm that from our experience so far, the relocation has proven to have been a very successful investment.

Just to recap briefly on Cryosite operations, I would like to remind you of the scope of Cryosite’s services:

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Cryosite provides a number of services that are aggregated into two market segments:

1. Biological Services, and

2. Warehousing and Distribution

Biological services include the private cord blood service, adult stem cell storage and biorepository management.

Warehousing and distribution includes the clinical trial logistics service, ATCC product distribution and other distribution services.

As you may recall, last year we focussed on our relocation and commissioning of the South Granville facility. During the past year, we focussed our resources on revamping our marketing strategy to make sure that all of our existing and prospective clients were made aware of the developments and to turn this awareness into increased business opportunities from both existing and prospective clients.

After a full year of the changes, the results have been very pleasing.

I would like to take some time now to focus on two areas in particular.

Firstly, the cord blood service. In 2001, Cryosite pioneered private cord blood storage in Australia, and was the first company to be TGA licensed. In May this year, Cryosite once again demonstrated its commitment to innovation and quality by being the first and only private cord blood service to have TGA approval for the directed allogenic release of cord blood.

This is a highly significant development for both Cryosite and its customers. Although the previous approval for autologous release was a very important service, the terms of the licence limited the release of the cord blood to the child from which it was collected. Under the terms of Cryosite's current licence, the blood is able to be released for use by any compatible family member. Therefore, Cryosite is now the only company in Australia that can offer “family banking”.

This has obvious benefits for parents considering private cord blood storage and has also given Cryosite a significant competitive advantage over its competitors who remain limited to allogenic release.

To complement this major breakthrough, we revamped our marketing strategy to make sure that both prospective parents and medical professionals are very clear on the advantages of Cryosite over its competitors. Some of the initiatives include, a revamp of the cord blood website, employing additional field marketing specialists, selective use of magazine advertising and the use of social networking media such as Facebook to generate interest in cord blood storage in general and the advantages of Cryosite ‘s family banking service. We have also engaged additional cord blood collectors to facilitate collections from public hospital clients.

Secondly, the clinical trial logistics service continued its strong performance. Our decision to capitalise on our experience and reputation in the cold‐chain management of high value

biopharmaceutical products has proven to have been a very sound decision and we have been able to achieve outstanding growth in the area. Approximately 40% of all our clinical trials now involve cold‐chain management.

The total number of trials currently being managed by Cryosite has increased to an average of over 330.

Both the ATCC distribution and biorepository services made valuable contribution to the overall results.

BUSINESS GROWTH AND OUTLOOK

We will continue to focus on the two major areas of growth that I previously mentioned.

As the change to the cord blood service was only relatively recent, we are confident that we will continue to achieve significant growth for the next year at least.

Likewise with the clinical trial logistics service, there is no reason to think that we will not continue to see excellent growth. We are also looking to put our experience to good use and look for commercial drug distribution opportunities.

With the steady release of this new generation of therapeutic products which are characterised by being low‐volume – high‐value and having very demanding cold‐chain management requirements, we are confident that we will be able to attract significant new clients.

SHAREHOLDER SUPPORT

The Board and Management are grateful for the continuing support and interest in the company by the shareholders. We remain confident that the company is well positioned to take advantage of both the growth in research and biotechnology activity in Australia, and the increased acceptance of outsourcing of non‐core logistics by organisations involved in research clinical trials in Australia and New Zealand.

Theo Onisforou

Chairman

7 November 2011