CRYOSITE LIMITED — Interim / Quarterly Report 2012

Feb 27, 2012

Cryosite Limited ABN 86 090 919 476 Appendix 4D

Half year report

Six months ended 31 December 2011 (‘current period’) and 31 December 2010 (‘previous corresponding period’)

Results for announcement to the market

Results for announcement	to the market	to the market
Revenue from ordinary activities: Profit from ordinary activities after tax attributable to members: Net profit for the period attributable to members:	$A'000 Up 17.1% to 3,896 Up 113.5% to 349 Up 113.5% to 349
NTA backing	Current period	Previous corresponding Period
Net tangible asset backing per ordinary security	10.8 cents	9.7 cents

An explanation of the result of the current period is set out in the Directors Report contained in the attached audit reviewed half-year Financial Report.

Full Financial details of the Company are also contained in the attached audit reviewed half-year Financial Report

Events subsequent to Balance Date - Dividends: On 23 February 2012 the Board declared an interim unfranked dividend of $233,198 (0.50 cents per ordinary share).

No dividends have been provided for or paid at the reporting date (Previous corresponding period: Nil)

This information should be read in conjunction with the annual financial report of Cryosite Limited as at 30 June 2011.

CRYOSITE LIMITED

ABN 86 090 919 476

Half-Year Financial Report

31 December 2011

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Table of Contents

	PAGE NO.
Directors’ Report	3-4
Auditor’s Independence Declaration	5
Directors’ Declaration	6
Condensed Consolidated Statement of Comprehensive Income	7
Condensed Consolidated Statement of Financial Position	8
Condensed Consolidated Statement of Cash Flows	9
Condensed Consolidated Statement of Changes in Equity	10
Notes to the Half-year Financial Statements	11-19
Independent Review Report to the Members of Cryosite Limited	20-21

C RYOSITE L IM ITED – H ALF -Y EAR F INANCIAL R EPORT

Directors’ Report

Your directors submit their report for the half-year ended 31 December 2011.

Directors

The directors of Cryosite Limited and its controlled entities (the “Company”) in office during the half year, and until the date of this Report are set out below. Directors were in office for this entire period unless otherwise stated.

ss otherwise stated.
Andrew John Kroger	Chairman	Appointed 21November 2011
Gordon Leonard Milliken	Managing Director	Appointed 28 February 2002
Graeme Allen Moore	Executive Director	Appointed 22 September 2008
Theodore Onisforou	Chairman	Resigned 7 November 2011

Principal Activities

Cryosite was established in 2000, it has developed into a unique company that provides a number of integrated biologistics services. The services are categorised into two groups, Biological Services and Warehousing and Distribution. The biological services include the private cord blood service. Cryosite pioneered private cord blood collection in Australia and is recognised as the country’s premier cord blood bank. Biorepository management and adult stem cell storage are also part of the biological services. The Warehousing and Distribution service includes the Clinical Trial Logistics and the services associated with the American Type Culture Collection distribution agreement.

Review of Operations

Group revenue increased during the half-year by 17.1% over the corresponding period last year to $3,896,381 (2010: $3,327,942).The consolidated net profit attributable to members of the parent for the period was $348,602 (2010: $163,274) an increase of 113.5%.

The company has operated out of the new South Granville premises for over 12 months and we are now realising some of the anticipated benefits of the upgraded premises. This has been particularly important for the clinical trial logistics service where the combined effects of both larger capacity and improved systems has helped Cryosite attract a number of new clients.

Interest in the clinical trial service in particular remains very high and we anticipate that we will continue to attract a regular number of new client’s as well as retain a steady flow of new projects from our existing clients.

Events Subsequent to Balance Date – Dividend Payment

As the Group is now starting to reflect the benefits from the relocation to the new premises with increased profits and cash flow the Board is pleased to announce that on 23 February 2012 it declared a maiden interim unfranked dividend of 0.50 cents per ordinary share. There is no impact on the current financial report.

Cents $ Interim dividend recommended 0.50

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Directors’ Report

Auditor’s Independence Declaration

A statement of independence has been provided by our auditors, Duncan Dovico, and follows this Director’s Report on page 5.

Signed in accordance with a resolution of the directors made pursuant to s.306(3) of the Corporations Act 2001 .

Andrew Kroger Chairman Sydney, 27 February 2012

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DUNCAN

DOVICO

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Auditors’ Independence Declaration

In relation to our review of the financial report of Cryosite Limited and its controlled entity for the half-year ended 31 December 2011, to the best of my knowledge and belief, there have been:

• (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• (ii) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Cryosite Limited and its controlled entity during the half-year ended 31 December 2011.

DUNCAN DOVICO CHARTERED ACCOUNTANTS

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Rosemary Megale Partner

Dated in Sydney, this 27[th] February 2012

LEVEL 12, 90 ARTHUR STREET, NORTH SYDNEY NSW 2060  PO BOX 1994 , NORTH SYDNEY NSW 2059 T: (02) 9922 1166  F: (02) 9922 2044  E: email@duncandovico.com.au  ABN 19 173 326 199 Liability limited by a scheme approved under Professional Standards Legislation

D U N C A N D O V I C O C H A R T E R E D A C C O U N T A N T S

C RYOSITE L IM ITED – H ALF -Y EAR F INANCIAL R EPORT

Directors’ Declaration

The Directors of Cryosite Limited declare that:

1. The financial statements and notes are in accordance with the Corporations Act 2001 including:

2. (a) in the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and

3. (b) in the directors’ opinion, complying with accounting standard AASB134 Interim Financial Reporting .

Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act 2001 .

On behalf of the Directors

Andrew Kroger Chairman

Sydney, 27 February 2012

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Condensed Consolidated Statement of Comprehensive Income

For The Half-Year Ended 31 December 2011

Notes	Consolidated 2011 2010 $ $
Revenues 2 Expenses Costs of providing services Finance costs Marketing expenses Occupancy expenses Administration expenses Profit from operations before tax Income tax (expense) benefit Profit after tax from operations Net Profit attributable to members of the parent Other comprehensive income Other comprehensive income for the period, net of tax Total comprehensive income for the half year 3 Earnings per share (cents per share) Basic EPS for the half-year 3 Diluted EPS for the half-year 3	3,896,381 3,327,942 (1,989,866) (1,865,670) (6,225) (5,642) (158,470) (100,650) (507,123) (507,567) (878,846) (696,385)
	355,851 152,028 (7,249) 11,246
	348,602 163,274
	348,602 163,274
	- -
	348,602 163,274
	0.75 0.35 0.75 0.35

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Condensed Consolidated Statement of Financial Position As at 31 December 2011

Notes	Consolidated as at 31 December 2011 as at 30 June 2011 $ $
ASSETS Current Assets Cash and cash equivalents 9 Trade and other receivables Inventories Prepayments Total Current Assets Non-current Assets Trade and other receivables Deferred income tax asset Plant and equipment 10 Intangible assets 1(c) Total Non-current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Unearned income Provisions Total Current Liabilities Non-current Liabilities Unearned income Provisions Total Non-current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Contributed capital Share option reserve Accumulated losses TOTAL EQUITY	3,759,308 2,910,943 1,172,772 1,246,091 14,249 27,984 347,447 163,242
	5,293,776 4,348,260
	1,055,188 1,116,684 775,721 782,970 2,161,443 2,377,220 - -
	3,992,352 4,276,874
	9,286,128 8,625,134
	1,202,871 1,128,584 356,096 337,165 326,445 304,274
	1,885,412 1,770,023
	2,096,566 1,922,131 264,165 241,597
	2,360,731 2,163,728
	4,246,143 3,933,751
	5,039,985 4,691,383
	8,138,766 8,138,766 239,118 239,118 (3,337,899) (3,686,501)
	5,039,985 4,691,383

The above condensed consolidated statement of financial position should be read in 8 conjunction with the accompanying notes

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Condensed Consolidated Statement of Cash Flow For The Half-Year Ended 31 December 2011

Notes	Consolidated 2011 2010 $ $
Cash flows from operating activities Receipts from customers Payments to suppliers and employees Finance income Borrowing costs Net cash flows from operating activities Cash flows from investing activities Purchase of plant and equipment Interest received – term deposit Proceeds on disposal of plant & equipment Net cash flows from (used in) investing activities Cash flows from financing activities Net cash flows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 9	3,990,009 3,619,316 (3,199,708) (2,936,196) 57,697 120,830 (6,225) (5,642)
	841,773 798,308
	(65,883) (481,127) 72,475 - - 40,648
	6,592 (440,479)
	- -
	- -
	848,365 357,829 2,910,943 2,045,065
	3,759,308 2,402,894

The above condensed consolidated statement of cash flow should be read in conjunction with 9 the accompanying notes

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Condensed Consolidated Statement of Changes in Equity For The Half-Year Ended 31 December 2011

CONSOLIDATED Notes	Attributable to equity holders of theparent	Attributable to equity holders of theparent
	Contributed capital Accumulated losses $ $	Employee equity benefits reserve Reserves Total equity $ $ $
At 1 July 2011 Profit for the period Other Comprehensive Income Transactions with Owners in their capacity as owners: Amortisation of employee share based payments 2(ii) At 31 December 2011 At 1 July 2010 Profit for the period Other Comprehensive Income Transactions with Owners in their capacity as owners: Amortisation of employee share based payments2(ii) At 31 December 2010	8,138,766 (3,686,501) - 348,602 - - - -	- 239,118 4,691,383 - - 348,602 - - - - - -
	8,138,766 (3,337,899)	- 239,118 5,039,985
	8,138,766 (4,020,806) - 163,274 - - - -	- 236,727 4,354,687 - - 163,274 - - - - 2,391 2,391
	8,138,766 (3,857,532)	- 239,118 4,520,352

The above condensed consolidated statement of cash flow should be read in conjunction with 10 the accompanying notes

C RYOSITE L IM ITED – H ALF -Y EAR F INANCIAL R EPORT

Notes to the Financial Statements

For The Half-Year Ended 31 December 2011

1. BASIS OF PREPARATION AND ACCOUNTING POLICIES

(a) Basis of Preparation

This general purpose condensed financial report for the half-year ended 31 December 2011 has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 .Compliance with AASB 134 Interim Financial Reporting ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting.

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

It is recommended that the half-year financial report be read in conjunction with the annual report for the year ended 30 June 2011 and considered together with any public announcements made by Cryosite Limited during the half-year ended 31 December 2011 in accordance with the continuous disclosure obligations of the ASX listing rules.

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.

(b) Changes in Accounting Policies

The Company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current reporting period.

The Company has adopted the following new and amended Australian Accounting Standards and AASB Interpretations as of 1 January 2011:

• AASB 124 Related Party Disclosures (amendment) effective 1 January 2011

• AASB 132 Financial Instruments: Presentation (amendment) effective 1 February 2010

• AASB Int 14 Prepayments of a Minimum Funding Requirement (amendment) effective 1 January 2011

• Improvements to AASBs (May 2010)

The adoption of the standards or interpretations is described below:

AASB 124 Related Party Transactions (Amendment)

The AASB issued an amendment to AASB 124 that clarifies the definitions of a related party. The new definitions emphasise a symmetrical view of related party relationships and clarifies the circumstances in which persons and key management personnel affect related party relationships of an entity. In addition, the amendment introduces an exemption from the general related party disclosure requirements for transactions with government and entities that are controlled, jointly controlled or significantly influenced by the same government as the reporting entity. The adoption of the amendment did not have any impact on the financial position or performance of the Company.

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Notes to the Financial Statements

For The Half-Year Ended 31 December 2011

(b) Changes in Accounting Policies (continues)

AASB 132 Financial instruments: Presentation (Amendment)

The AASB issued an amendment that alters the definition of a financial liability in AASB 132 to enable entities to classify rights issues and certain options or warrants as equity instruments. The amendment is applicable if the rights are given pro rata to all of the existing owners of the same class of an entity's non-derivative equity instruments, to acquire a fixed number of the entity's own equity instruments for a fixed amount in any currency. The amendment has had no effect on the financial position or performance of the Company because the Company does not have these type of instruments.

AASB Int 14 Prepayments of a Minimum Funding Requirement (Amendment) The amendment removes an unintended consequence when an entity is subject to minimum funding requirements and makes an early payment of contributions to cover such requirements. The amendment permits a prepayment of future service cost by the entity to be recognised as a pension asset. The Company is not subject to minimum funding requirements, therefore the amendment of the interpretation has no effect on the financial position nor performance of the Company.

In May 2010, the AASB issued its third omnibus of amendments to its standards, primarily with a view to removing inconsistencies and clarifying wording. There are separate transitional provisions for each standard. The adoption of those amendments had no impact on the financial position or performance of the Company.

The Company has not elected to early adopt any of the new standards or amendments that are issued but not yet effective.

(c) Intangible Asset

The intangible asset which relates to the Cryobyte LS software has a carrying value of nil as at 31 December 2011. At 30 June 2010 the Board decided to fully amortise the costs associated with the software as the ongoing development has ceased.

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Notes to the Financial Statements

For The Half-Year Ended 31 December 2011

	Consolidated
	2011	2010
Notes	$	$

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2. REVENUE AND EXPENSES

Specific items

Profit before income tax expense includes the following revenues and expenses whose disclosure is relevant in explaining the performance of the entity:

(i) Revenue

Rendering of services Interest income Profit on disposal of plant & equipment Expenses Included within expenses are the following amounts: Depreciation & amortisation Employee benefits Expense of share-based payments - Employee share scheme 5	3,768,749 3,171,840 127,632 120,692 - 35,410
	3,896,381 3,327,942
	281,660 249,435 1,221,692 1,018,144 - 2,391

(ii) Expenses

3. EARNINGS PER SHARE

Basic earnings per share amounts are calculated by dividing net profit for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period (adjusted for the effects of dilutive options)

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Notes to the Financial Statements

For The Half-Year Ended 31 December 2011

3. EARNINGS PER SHARE Continued

The following reflects the income and share data used in the total operations basic and diluted earnings per share computations:

earnings per share computations:
Net profit attributable to equity holders of the parent	Consolidated Consolidated Consolidated 31 December 2011 30 June 2011 31 December 2010 $ $ $ 348,602 334,305 163,274
	No of shares. No of shares. No of shares.
Weighted average number of ordinary shares for basic earnings per share	46,639,563 46,639,563 46,639,563

There have been no other transactions involving ordinary shares or potential ordinary shares since the reporting date and before completion of these financial statements.

4. DIVIDEND PAID OR PROPOSED

No dividend has been provided for or paid at the reporting date (30 June 2011 : Nil).

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Notes to the Financial Statements

For The Half-Year Ended 31 December 2011

5. EMPLOYEE BENEFITS

Share based payments

Share Options

Options over ordinary shares:

Employee share scheme

At the end of the period there were 520,000 (30 June 2011: 520,000) un-issued ordinary shares in respect of which options were outstanding under the employee share scheme.

	31	December 2011	December 2011		30 June 2011
						Expense
	No. of	Exercise	Expense	No. of	Exercise	for
	Options	price	for period	Options	price	period
			$			$
Balance at beginning of
period	520,000	-	-	520,000	-	-
Options expiring or
forfeited during the
period	-	-	-	-	-	-
Expense for options
outstanding during
period	-	-	-	-	-	-
Balance at end of period	520,000	-	-	520,000	-	-
Exercisable at end of period
Graeme Moore	300,000	0.30		300,000	0.30
Philip Alger	220,000	0.30		220,000	0.30
Sub-Total Key
management personnel	520,000			520,000
Other employees	-	-		-	-
	520,000	0.30		520,000	0.30

Terms and conditions of options issued under employee share scheme details

On 18 February 2002, Cryosite established an Employee Share Option Plan (“the Plan”). The Plan is designed to assist in the retention and motivation of employees and directors of the Company.

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Notes to the Financial Statements

For The Half-Year Ended 31 December 2011

5. EMPLOYEE BENEFITS continued

Share based payments continued

Share Options continued

The terms and conditions of the Plan are as follows:

Options may be granted under the Plan to an employee or director of the Company or any of its subsidiaries, or to a person who renders services to the Company, or to any of its subsidiaries and is eligible to be a participant in the Plan under the terms of the Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997 and by any instrument issued by ASIC and applicable to the Company (“eligible participant”).

The Cryosite Board will determine the number of share options granted to each eligible participant.

The total number of share options granted under the Plan will be limited to 5% of the total number of issued shares at the time the offer or grant of options is made.

Options will be issued for no consideration.

The Board will determine the Option Exercise Price after considering the volume weighted average of the prices at which shares were traded on ASX during the one month period before the date of the offer.

Options will expire at the end of eight years from the option grant date or if the participant ceases to be an employee or director of, or render services to, the Company or any of its Subsidiaries for any reason whatsoever.

The exercise price of each initial option issued under the Plan was the retail offer price included in the prospectus (40 cents) for the Initial Public Offering.

For the initial options granted to employees and the Executive Director under the Plan, 20% will become exercisable after the first anniversary of listing on ASX and an additional 20% will become exercisable each anniversary of listing thereafter. The Company was listed on the ASX on 9 May 2002.

There were no options issued at the reporting date that are not exercisable.

Other options

At the end of the half-year there were nil (30 June 2011: Nil) unissued ordinary shares in respect of which options were outstanding, issued for the provision of services.

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Notes to the Financial Statements

For The Half-Year Ended 31 December 2011

5. EMPLOYEE BENEFITS continued

Share based payments continued

Other options continued

Balance at beginning of year Options expiring during the period Balance at end of period	31 December 2011 30 June 2011 No. of Options. Expense for period $ Options No. Expense for year $ - - 170,000 - - - (170,000) -
	- - - -

6. CONTINGENT LIABILITIES

The Company is not aware of any contingent liabilities or contingent assets at reporting date.

7. SUBSEQUENT EVENTS

On 23 February 2012, the Board declared an interim unfranked dividend of 0.50 cents per ordinary share. There is no impact in the current financial report.

The directors are unaware of any other event or transaction that has occurred between the reporting date and the date of this financial report that may have a significant effect on the company.

8. SEGMENT INFORMATION

Identification of Reportable Segments

The Company has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (the chief operating decision makers) in assessing performance and in determining the allocation of resources. The segment information provided is consistent with the internal management reporting.

Two reportable segments have been identified as follows:

Biological Services	Private cord blood services, biorepository management
	and adult stem cell storage.
Warehousing & Distribution	Clinical trial logistics and American Type Culture
	Collection distribution services

The accounting policies used by the Company in reporting segments internally are the same as those contained in note 1 to the accounts and in the 30 June 2011 annual financial report.

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Notes to the Financial Statements

For The Half-Year Ended 31 December 2011

8. SEGMENT INFORMATION Continued

Operating Segments

31 December 2011 – Consolidated Total segment revenue Segment profit before EBITDA 31 December 2010 – Consolidated Total segment revenue Segment profit before EBITDA Total Segment assets 31 December 2011 30 June 2011	Biological Services Warehousing & Distribution Total $ $ $ 2,015,351 1,881,030 3,896,381
	150,361 365,743 516,104
	1,688,467 1,483,373 3,171,840
	142,263 144,150 286,413
	5,288,855 3,997,273 9,286,128
	4,844,534 3,350,140 8,194,674

A reconciliation of operating EBITDA before operating profit before income tax is provided as follows:

Operating EBITDA Interest revenue Depreciation and amortisation Finance costs Profit before tax	Consolidated 31 December 2011 $ 31 December 2010 $ 516,104 286,413 127,632 120,692 (281,660) (249,435) (6,225) (5,642)
	355,851 152,028

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Notes to the Financial Statements For The Half-Year Ended 31 December 2011

9. CASH AND CASH EQUIVALENTS

For the purposes of the Condensed Cash Flow Statement, cash and cash equivalents comprise the following at 31 December 2011:

Cash at bank and in hand Short-term deposits	31 December 2011 30 June 2011 31 December 2010 $ $ $
	209,514 397,077 435,222
	3,549,794 2,513,866 1,967,672
	3,759,308 2,910,943 2,402,894

10. PROPERTY, PLANT AND EQUIPMENT

During the six months ended 31 December 2011, the Company acquired assets with a cost of $65,883 (2010: $481,127).

Assets with a net book value of $Nil were disposed of by the Group during the six months ended 31 December 2011 (2010: $5,238), resulting in a net gain on disposal of $Nil (2011: $35,410).

11. RELATED PARTY TRANSACTIONS

The following table provides the total amount of transactions which have been entered into with related parties during the six month periods ending 31 December 2011 and 31 December 2010 as well as balances with related parties as at 30 June 2011:

Amounts owed by Cryosite Distribution Pty Ltd Amounts owed to Cryosite Distribution Pty Ltd	31 December 2011 $ 30 June 2011 $ 31 December 2010 $ - 558,043 - 832,677 - 751,848

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DUNCAN DOVICO

Independent Auditor’s Report to the members of Cryosite Limited

Report on the Condensed Half-year Financial Report

We have reviewed the accompanying half-year financial report of Cryosite Limited and its controlled entity, which comprises the statement of financial position as at 30 June 2011 and statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, other selected explanatory notes and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the halfyear end or from time to time during the half-year ended 31 December 2011.

Directors’ responsibility for the half-year financial report

The directors of the company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes: establishing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that it is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of Interim and Other Financial Reports Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 30 June 2011 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Cryosite Limited and its controlled entity during the half-year ended 31 December 2011, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

LEVEL 12, 90 ARTHUR STREET, NORTH SYDNEY NSW 2060  PO BOX 1994 , NORTH SYDNEY NSW 2059 T: (02) 9922 1166  F: (02) 9922 2044  E: email@duncandovico.com.au  ABN 19 173 326 199 Liability limited by a scheme approved under Professional Standards Legislation

D U N C A N D O V I C O C H A R T E R E D A C C O U N T A N T S

DUNCAN DOVICO

Independence

In conducting our review, we have complied with independence requirements of the Corporations Act 2001 .

Auditor’s Opinion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the halfyear financial report of Cryosite Limited and its controlled entities is not in accordance with the Corporations Act 2001, including :

• (i) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and

• (ii) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

DUNCAN DOVICO CHARTERED ACCOUNTANTS

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Rosemary Megale Partner

Dated in Sydney, this 27[th] February 2012

D U N C A N D O V I C O C H A R T E R E D A C C O U N T A N T S

LEVEL 12, 90 ARTHUR STREET, NORTH SYDNEY NSW 2060  PO BOX 1994 , NORTH SYDNEY NSW 2059 T: (02) 9922 1166  F: (02) 9922 2044  E: email@duncandovico.com.au  ABN 19 173 326 199 Liability limited by a scheme approved under Professional Standards Legislation