DIMERIX LIMITED — Capital/Financing Update 2007

Dec 18, 2007

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Dear Shareholder

SUN BIOMEDICAL LIMITED SHARE PURCHASE PLAN

The Share Purchase Plan ( SPP ) provides eligible shareholders of Sun Biomedical Limited ( Sun Biomedical ) with the opportunity to purchase additional fully paid ordinary shares in the capital of Sun Biomedical pursuant to the enclosed SPP terms and conditions.

The price at which shares are offered is 4.3 cents per share. No brokerage or other costs associated with an acquisition of shares on the Stock Market will apply to shares purchased under the SPP.

The details of the SPP and the Application Form to purchase shares in the SPP are attached. Please note that applications and cheques under the SPP must be received by 5pm on 25 January, 2008 .

Eligible shareholders as at the record date for entitlement to participate in the SPP which is 5pm 19 December, 2007 will be entitled to accept one of five (5) alternative offers to acquire shares at 4.3 cents under the SPP as follows:

	Offer A	-	23,250 shares	– total amount payable	$ 999.75
	Offer B	-	46,500 shares	– total amount payable	$1,999.50
	Offer C	-	69,750 shares	– total amount payable	$2,999.25
	Offer D	-	93,000 shares	– total amount payable	$3,999.00
	Offer E	-	116,250 shares	– total amount payable	$4,998.75

The funds raised from the SPP will be primarily used to fund capital expenditure to increase manufacturing capacity, repayment of promissory note commitments and additional working capital.

If you have any questions in respect to the SPP please contact me on:

Telephone: +61 3 8610 6370 Facsimile: +61 3 8610 6374 Email: info@sunbiomed.com

Yours sincerely

Andrew Paice Director

|Sun Biomedical
Limited
ABN 18 001 285 230|Suite 401, 480 Collins Street, Melbourne, Victoria, Australia, 3000
T:+61 3 8610 6370 |F:+61 3 8610 6374 |E:info@sunbiomed.com|
|---|---|

ASX:SBN www.sunbiomed.com

SUN BIOMEDICAL LIMITED SHARE PURCHASE PLAN

TERMS AND CONDITIONS

The terms and conditions of the SPP are set out below. By agreeing to purchase shares in the SPP you will agree to be bound by the terms and conditions of the SPP.

Applications must be received by 25 January, 2008 .

Eligibility to Participate

You are eligible to participate under this offer if you were a registered holder of fully paid ordinary shares of Sun Biomedical on 19 December, 2007 with a registered address in Australia or New Zealand.

Participation in the SPP is optional. Also you should note that offers made under the SPP are not renounceable. This means that you cannot transfer your right to purchase shares to anyone else.

Price of Shares

The issue price for shares under this offer is 4.3 cents a discount of 20% to the weighted average trading price of all shares sold on the Australian Securities Exchange on the five trading days up to and including 14 December, 2007. The weighted average trading market price was 5.4 cents.

The market price of Sun Biomedical shares may rise or fall between the date of this offer and the date the shares are allotted to you. This means that the price you pay per share under this offer may exceed the price of Sun Biomedical shares at the time the shares are allotted to you under the SPP. You should seek your own financial advice in relation to this offer and your participation in the SPP.

Offers

Eligible shareholders may apply for a specified number of shares under one of the following five alternative offers:

• Offer A – 23,250 shares – total amount payable - $999.75

• Offer B – 46,500 shares – total amount payable - $1,999.50

• Offer C - 69,750 shares – total amount payable - $2,999.25

• Offer D - 93,000 shares – total amount payable - $3,999.00

• Offer E - 116,250 shares – total amount payable - $4,998.75

You should note that you may only apply for one of the five alternatives. Also the maximum number of 116,250 shares set out in Offer E will apply even if you receive more than one Offer (for example, because you are a joint holder of shares or because you hold more than one shareholding under separate accounts). A trustee or nominee expressly noted on Sun Biomedical’s share register may accept an offer for each occasion they are separately recorded as a trustee or nominee for a different beneficiary named on that register. Sun Biomedical reserves the right to reject any application for shares where it believes that this condition has not been complied with. All new shares issued under the SPP will rank equally with existing fully paid ordinary shares in Sun Biomedical at the date of allotment and will carry the same voting rights, dividend rights and other entitlements at the allotment date.

Scaling Back of Applications

The Board of Sun Biomedical has determined that it will retain the discretion to scale back applications under the SPP depending on the level of SPP subscription applications received.

In the event that applications are scaled back then all applications made under any offer category will be scaled back on a pro rata basis and Sun Biomedical will refund the excess application money (without interest).

Timetable

Record Date 19 December, 2007 SPP Offer Closes 25 January, 2008 Allotment of Shares 1 February, 2008 Anticipated Quotation of Shares on ASX 5 February, 2008

Applications received after 25 January, 2008 will not be accepted. If the exact amount of money is not tendered with the application form Sun Biomedical reserves the right to accept it in respect to a number of shares for which the subscription amount is equal to or less than your payment.

Acceptance of Offer

If you wish to apply for shares under the SPP you should complete the enclosed Application Form and forward it with your payment by cheque made payable to the ‘Sun Biomedical Share Purchase Plan’ to the address set out on the Application Form. Applications must be received no later than 5pm on 25 January, 2008 .

If you have any questions in respect to the SPP please contact the Company, your stockbroker, financial adviser or Sun Biomedical’s Share Registry, Computershare Investor Services Pty Ltd on 1300 850 505 (within Australia) or +61 3 9415 4000 (outside the Country).

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