IMPEDIMED LIMITED — Capital/Financing Update 2010

Aug 24, 2010

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ASX : IPD
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Wednesday, 25 August 2010

PRESS RELEASE

IMPEDIMED ANNOUNCES FIRST MANAGED CARE CONTRACT

FOR L-DEX[®] TESTING ADVANCING US REIMBURSEMENT

ImpediMed Limited today announced its first contract with a US managed care organisation for use of its L-Dex technology as an aid in the clinical assessment of lymphoedema in female breast cancer patients. The National Preferred Provider Network (NPPN), a Preferred Provider Organization (PPO), represents 3.5 million members.

“An important goal in the company’s capital raising over the last twelve months has been to build our managed care team and it is gratifying to put in place our first managed care contract. We are excited about the partnership with NPPN, which can provide reimbursement of L-Dex testing for its members throughout the US” said Greg Brown, ImpediMed’s CEO. “NPPN is a national PPO that contracts with health insurance providers to assist physicians within their network with reimbursement for services provided. Payment to physicians for L-Dex testing is the main driver of our business model and ImpediMed looks forward to working with NPPN as we reach out to breast surgeons, surgical oncologists and cancer centers across their network to inform them of this contract.”

“Networks provide a physician-friendly means for introducing new technologies” commented Dr. Walton Taylor, ImpediMed’s US Medical Director. PPO’s can take on the financial risk associated with the treatment of specified groups of patients. These networks benefit when the cost of caring for those patients is lower than the fees they charge insurance providers for that medical coverage. Health economics will play an important role as ImpediMed advances its goal of building more and more contracts with key managed care organisations.”

NPPN manages physician claims with their contracted payer clients. For the balance of 2010, physician claims will continue to utilize a miscellaneous code for L-Dex testing. After January 1, a technology specific Category III code becomes effective. Payments processed by NPPN will typically be discounted off the physician fee, which based off surgeon feedback on the miscellaneous code, should reflect a payment in the range of $100 to $180 to the provider for the testing.

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Across the United States, ImpediMed is continuing discussions with a variety of managed care organisations, public and private health insurance providers and the provider networks contracted with to provide medical services. The company sees other opportunities to provide effective reimbursement by working with PPO’s, Independent Physician Associations (IPA’s), Health Maintenance Organizations (HMO’s), medical groups and traditional health insurance providers.

NPPN is part of the Coalition America and is one of the fastest growing Preferred Provider Organizations (PPO) in the nation and offers its participating providers access to several million covered lives through insurance carriers, third party administrators, Taft-Hartley Plans, self-administered employers and other managed care organisations. For providers, NPPN participation means access to a large network, an expanded patient base, faster payment and fair reimbursement. The NPPN community fosters closer relationships between providers and payers.

ENDS For further information contact:

Greg Brown ImpediMed CEO T: 61-7-3860-3700 Mobile/Cell: +61408281127

L-Dex® is a trademark of ImpediMed Limited.

“L-Dex® values that lie outside the normal range may indicate the early signs of lymphoedema and values that have changed +10 L-Dex units from baseline may also indicate early lymphoedema. The L-Dex scale is a tool to assist in the clinical assessment of lymphoedema by a medical provider. The L-Dex scale is not intended to diagnose or predict lymphoedema of an extremity”.

About ImpediMed

ImpediMed Ltd. is the world leader in the development and distribution of medical devices employing Bioimpedance Spectroscopy (BIS) technologies for use in the non-invasive clinical assessment and monitoring of fluid status. ImpediMed’s primary product range consists of a number of medical devices that aid surgeons, oncologists, therapists and radiation oncologists in the clinical assessment of patients for the potential onset of secondary lymphoedema. Preoperative clinical assessment in breast cancer survivors, before the onset of symptoms, may prevent the condition from becoming a lifelong management issue and thus improve the quality of life of the cancer survivor. ImpediMed has the first medical device with an FDA clearance in the United States to aid health care professionals, clinically assess secondary lymphoedema of the arm in female breast cancer patients. For more information, visit. www.impedimed.com

About US Managed Care

For more information, visit. www . americanheart.org/presenter.jhtml?identifier=4663 & www . nlm.nih.gov/medlineplus/managedcare.html

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