DIMERIX LIMITED - Interim / Quarterly Report 2008

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ASX Company Announcement

28 October 2008

CORRECTION TO INVESTOR UPDATE

The Investor Update previously lodged on 28 October 2008 at section 1 ‘Financial Performance for September Quarter’, incorrectly named the last column as ‘Dec 2008 Quarter’ instead of ‘Dec 2007 Quarter’.

Please find attached an amended Investor Update incorporating this correction.

For further information contact:

Jim Hallam Director Mobile: 0414965442 Email: [email protected]

Sun Biomedical Limited ABN 18 001 285 230

Investor Communications Computershare T: +61 1300 850 505 | F: +61 3 9473 2500 | E: [email protected]

ASX:SBN www.sunbiomed.com

28 October 2008

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ASX Company Announcement

Investor Update

The Directors of Sun Biomedical Limited (ASX: SBN or the Company) wish to provide the following update to investors in relation to the operations of Sun Biomedical Laboratories Inc. (SBL).

1. Financial Performance for September Quarter

	Sept 2008 Quarter	Jun 2008 Quarter	Mar 2008 Quarter	Dec 2007 Quarter
Sales revenues (AUD$’000)~~(1)~~	240	140	282	120
Number of OraLine units sold	39,650	23,950	59,111	17,335
~~(1)~~ Unaudited. Represents sales made not cash received as per Appendix 4C. At 30 September 2008, SBL had trade debtors of A$143k

The increase in September quarter sales from the June quarter is due primarily to increased US distribution of OraLine. While the downturn in the US economy has slowed down sales to existing distributors, the effort launched in January 2008 to broaden the base of distributors has enabled OraLine sales to grow in the US.

The group is now free of interest bearing debt and, as at 30 September 2008, had $1.74m in cash reserves.

Sun Biomedical Investor Communications Limited Computershare T: +61 1300 850 505 | F: +61 3 9473 2500 | ABN 18 001 285 230 E: [email protected]

ASX:SBN www.sunbiomed.com

The table below summarises the status of the key initiatives identified in the Prospectus:

Use of Funds	Minimum Subscription	Maximum Subscription	Status
Payment to Dr Ming and Alice Sun as final consideration for the acquisition of SBL	$516,000	$516,000	$0.6m was paid in September quarter
Commercialisation of China joint venture, including capital expenditure required to increase the production capacity of the current plant	$140,000	$400,000	In progress (refer 4(a) below). Production capacity will only need expansion if demand exceeds one million units per year.
Development of BioScreens Cup and VisuaLine 510(k) Clearance	$170,000	$170,000	Cup development is in progress (refer 4(b) below). The submission of the 510k is dependent upon attainment of adequate cup sales to justify cost.
Development and marketing of OraLine VIII	$125,000	$125,000	In progress (refer 4(c) below)
FDA Good Manufacturing Practice compliance and quality control measures	$100,000	$100,000	In progress – a new Quality Assurance manager has been employed (refer 5 below)
Working capital to support operating costs of SBL and the Company	$619,000	$1,517,963	Ongoing
Expenses of the Rights Issue	$330,000	$350,000	All expenses have now been paid.
Total funds raised	$2,000,000	$3,178,963

2. Capital Raising

The Rights Issue closed on 14 August 2008 and raised the Minimum Subscription Amount of $2,000,000. Since then, the Company has placed an additional amount of $1,178,963 through the Shortfall placement capacity which brings the total amount raised to the Maximum Subscription Amount of $3,178,963.

SBN is very pleased with this outcome, particularly in the light of current economic conditions. These funds will allow the Company to pursue its sales initiatives for at least the next twelve months. In addition, the Company has maintained the support of its key shareholders with Log Creek Pty Ltd now holding 14.1% of the issued ordinary shares and Dr Ming Sun holding 11.3%. Dr Sun increased his shareholding from 10.6% to 11.3% through the subscription of an additional $100,000 in October 2008.

The latest top 20 shareholder and option holder listings are attached to this update.

Sun Biomedical Investor Communications ASX:SBN Limited Computershare T: +61 1300 850 505 | F: +61 3 9473 2500 | www.sunbiomed.com ABN 18 001 285 230 E: [email protected]

The Company’ share price since 1 July 2008 is shown in the chart below:

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0.025
0.020
0.015
0.010
0.005
0.000
1/07/2008 31/07/2008 30/08/2008 29/09/2008
Share price (A$)
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3. Repayment of Promissory Note

During the quarter, the final repayment on the Promissory Note of USD 980,000 due to Dr Sun was made with USD 490,000 converting into New Ordinary Shares at the Rights Issue price of A$0.01 and the remaining amount of USD 490,000 being repaid from the proceeds of the Rights Issue on 5 September 2008. The Company is now free of interest bearing debt.

4. Update on SBL’s Sales Initiatives

a) China

Siyi has received the test report from the Ministry of Public Security (MPS) confirming that OraLine is in compliance with its quality standards. The Quality Standard Number Q/SIRL1-2008 has been issued by Shanghai Technology Quality Administration.

The Chinese version of OraLine IV has been specially tailored by SBL for Siyi and is called ‘Ai Rui Te 4-in-1 Saliva Drug Screen Device’. The major customized details are as follows:

Modified the Claimed Sensitivity Cutoff Values (CSCV). The new CSCV are based on the MPS lab test report (ng/mL): MET 50, COC 50, OPI 30, THC 8;
Modified the saliva collection method in the instructions for use. The new method is cup collection (spitting to the cup) only, instead of direct collection of saliva from the mouth using the device itself; and
Added a saliva collection cup to each unit of product.

Sun Biomedical Investor Communications ASX:SBN Limited Computershare T: +61 1300 850 505 | F: +61 3 9473 2500 | www.sunbiomed.com ABN 18 001 285 230 E: [email protected]