HYTERRA LTD — AGM Information 2008

Sep 24, 2008

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BrainZ Instruments Limited 2008 Annual Shareholders Meeting Chairman’s Address – Damian Pethica

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© 2007 BrainZ Instruments Limited

BrainZ FY 2008

• Rate of Unit Sales not growing compared with previous time period; 96 monitors in 12 months to 31 Mar 2008 vs. 71 monitors in the 7 months to 31 Mar 2007

• Sales revenues $2.3 million in 12 months to Mar 08 vs $1.4 million in 7 Months to Mar 07 - an average monthly reduction of 6%

• Cash reserves reduced from $7.0 million to $3.5 million, with $0.4 million from foreign exchange translation

• IP Assets written down at the end of the financial year – as a result of lower than .

• anticipated sales outlook

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© 2007 BrainZ Instruments Limited

Why are sales not growing?

• Lack of outcomes data

― No data to show that continuous brain monitoring and intervention results in lower rates of brain impairment e.g. at 2 years of age

― Interventions are not well established - current data shows that more seizures are detected with monitoring, and also fewer babies with clinically suspected seizures with no EEG signs of seizures on monitoring are treated with anti-epileptic drugs ― Results of cooling trials without aEEG triage are at least as good ― First outcomes data MRI likely 2010

• Other factors

  • BrainZ is preferred brand, but there is some competitive price cutting ― Medico-legal considerations in the USA

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© 2007 BrainZ Instruments Limited

Bedside Brain Monitoring – BrainZ Position

• Strengths

  • Primary focus at the bedside

― Global brand recognition with neonatal clinicians ― Relationships with Key Opinion Leaders ― Clinical Training program ― Core competence in algorithm knowledge and development

• Challenges

― Anticipating the evolving role of Neurologist ― The potential for more advanced tools at the bedside ― Product is of intermediate complexity, requiring training

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© 2007 BrainZ Instruments Limited

BrainZ FY2008 and YTD

• Auckland Uniservices IP assets acquired Sep 08

• Modified sensor electrodes introduced July 08

• RecogniZe[TM] US 510(k) withdrawn Feb 08

• • RecogniZe launched EU Jan 08

• BRM3 launched Aug 2007

• Ongoing efforts to limit cash burn

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© 2007 BrainZ Instruments Limited

Current Strategy

• Accept the facts - insufficient capital to continue current operations until outcomes data are available to drive market expansion

• M&A efforts to build critical mass during previous financial year did not reach fruition

• Present efforts:

  1. Integrate BZI into a broader neonatal business

  2. Partnership/trade sale with parties with an interest in the assets of BZI 3. Potential OEM arrangements

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© 2007 BrainZ Instruments Limited

BrainZ FY2008 Financials

	7 Months March 2007	12 Months March 2008
Sales revenue	1,406	2,265
Earnings before tax*	(3,631)	(4,250)
Non- recurring items	-	(4,078)
EBT	(3,631)	(8,328)
Net earnings	(3,654)	(8,343)
*excluding non-recurring items

BrainZ FY2008 Financials

a	a	a				ac	ac	s	s	s
									4,9314464,9313044,6273,462March 20087
									7	March 2008
								March 200
										3,462
		Cash						6970
								,
										4,627
		Total C	urre	nt Assets				8,352
										304
		Non- C	urre	nt Assets				5,074
										4,931
		Total A	sse	s				13,426
		Current	Lia	bilities				583		446
										4,931
	Total E	Total E	quit	y and Liabiliti	es			13,426

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BrainZ FY2008 Financials

	7 months March2007	12 months March 2008
Operating cash in	1,735	3,099
Operating cash out	(3,977)	(6,002)
Net Operating Cash	(2,242)	(2,903)
Net Investing Cash	(136)	(170)
Net Financing Cash	-	-
Net change in Cash	(2,378)	(3,073)
Foreign Exchange	(792)	(435)
Cash at End of Period	6,970	3,462

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BrainZ Instruments Limited 2008 Annual Shareholders Meeting Questions

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© 2007 BrainZ Instruments Limited