IMPEDIMED LIMITED — Capital/Financing Update 2012

May 13, 2012

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14 May 2012

ASX RELEASE

ASX ANNOUNCEMENT – SETTLEMENT OF FIRST TRANCHE OF IPD SHARES UNDER INSTITUTIONAL ENTITLEMENT OFFER

Brisbane, Australia – On 3 May 2012, ImpediMed Limited ( ASX:IPD ) ( ImpediMed or the Company ) announced the details of a 1 for 4 pro-rata accelerated non-renounceable entitlement offer of ordinary shares in ImpediMed consisting of an offer to institutional and sophisticated shareholders ( Institutional Entitlement Offer ) and an offer to eligible retail shareholders ( Retail Entitlement Offer ).

ImpediMed is pleased to announce that settlement of the first tranche of shares under the Institutional Entitlement Offer has occurred.

A total of 22,384,898 ordinary shares have been issued at $0.35 per ordinary share to raise approximately $7.8 million, which will bring the total number of ordinary shares in the Company to 178,901,959 (including 180,000 restricted shares).

Settlement of the second tranche of shares under the Institutional Entitlement Offer is expected to occur on 31 May 2012.

Additionally, the settlement of the Retail Entitlement Offer is expected to occur on 31 May 2012.

Yours faithfully IMPEDIMED LIMITED

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___________________________________ Steve Denaro - Company Secretary

ENDS

For further information contact:

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

ImpediMed Limited Unit 50 Parker Court Pinkenba, QLD 4008 Phone : +6-3860-3700

ImpediMed Limited ABN 65 089 705 144 Website: www.impedimed.com.au

L-Dex[®] is a trademark of ImpediMed Limited.

The L-Dex scale is a tool to assist in the clinical assessment of unilateral lymphoedema of arm and leg in women and the leg in men by a medical provider. The L-Dex scale is not intended to diagnose or predict lymphoedema of an extremity.

Important Notice

This announcement is not an offer or an invitation to acquire securities. In particular this release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, for the amount or benefit of, any U.S. Person. This announcement may not be released or distributed in the United States or to any U.S. Person. Any securities described in this announcement have not been and will not be registered under the U.S. Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States, or to, or for the account or benefit of, any U.S. Person.

ImpediMed Limited Unit 50 Parker Court Pinkenba, QLD 4008 Phone : +6-3860-3700

ImpediMed Limited ABN 65 089 705 144 Website: www.impedimed.com.au