HYTERRA LTD — Capital/Financing Update 2007

Oct 31, 2007

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www.brainz.com ARBN 116 829 675

ASX Announcement BrainZ Appendix 4C

US revenues from the new BRM3 monitor expected in December quarter

1 November 2007: BrainZ Instruments released its cash flow report (Appendix 4C) to ASX yesterday for both the current quarter and the six month period ending the 30th of September 2007.

Customer interest in the company’s new monitor, the BRM3, was strong during the quarter. However, delays associated with the company’s global distribution partner completing systems requirements to support the ordering process for the new product meant that no BRM3 orders were placed during the quarter. This had a impact on revenues. The company has since received orders for 21 BRM3 monitors in the month of October.

The company’s cash burn for the quarter was NZ$0.989m. At the end of the period, cash balances stood at $4.955m. The benefits of reduced costs from completed research projects (described in past releases) started to take effect in the quarter and are expected to take full effect in the 2009 financial year.

Inquiries:

Richard Smith Rudi Michelson Chief Executive Officer Monsoon Communications BrainZ 03 9620 3333 +1 443 280 2920

About BrainZ

BrainZ (ASX: BZI) is a New Zealand based medical technology company specializing in the research, development, manufacturing and sale of bedside brain monitoring technology. The BRM2 Brain Monitor, BrainZ’s first product, is a unique bedside tool that assists in the detection of brain injury and seizure activity in neonates. It has been specifically designed to assist intensive care staff with clinical decision-making in conjunction with other clinical data and in the direction of care on a day-to-day basis.

The BRM2 monitor, and its successor, the BRM3, has received regulatory approval and is in use in 20 countries worldwide. BrainZ dominates the local Australian and New Zealand markets via direct sales channels. BRM monitors are also installed in over 40 leading US hospitals. BrainZ has secured an exclusive agreement with GE Healthcare, a leading supplier of patient monitoring systems, for the distribution of BRM Brain Monitors in the USA and UK markets.

BrainZ Instruments was established in 2001 to commercialize pioneering neonatal brain research from the Auckland University’s Liggins Institute.