IMPEDIMED LIMITED — Capital/Financing Update 2012

May 2, 2012

3 May 2012

==> picture [92 x 83] intentionally omitted <==

ImpediMed Limited

[Insert name of option holder]

[Insert address of option holder]

ABN 65 089 705 144

Unit 1 50 Parker Court Pinkenba QLD 4113

Tel: +61 7 3860 3700 Fax: +61 7 3260 1225 Email: enquiries@impedimed.com

Dear Optionholder

ImpediMed Limited – notice to optionholders

This letter is to notify you that ImpediMed Limited ( ImpediMed ) has today announced a pro rata accelerated non-renounceable entitlement offer to raise up to approximately A$13.7 million (before costs) ( Entitlement Offer ).

Wilson HTM Corporate Finance Limited and RBS Morgans Corporate Ltd have been appointed as joint lead managers for the Entitlement Offer ( Joint Lead Managers ). The Entitlement Offer is not underwritten.

The Entitlement Offer has two components:

• an initial offer to eligible institutional and sophisticated shareholders identified by ImpediMed and the Joint Lead Managers; and

• an offer to eligible retail shareholders.

Eligible shareholders will be invited to subscribe for 1 New Share for every 4 ImpediMed shares owned at 7.00 pm (Sydney time) on the record date, 4 May 2012. Shareholders will be entitled to apply for New Shares in excess of their entitlement (Additional Shares). The allocation of Additional Shares will be determined by ImpediMed in its sole discretion.

The offer price of A$0.35 represents a 15.5% discount to the theoretical ex-rights price (TERP)[1] of $0.41 and an 18.6% discount to the closing price of ImpediMed’s shares of $0.43 on 30 April 2012.

New Shares will rank equally with existing ImpediMed shares.

Entitlements are non-renounceable and will not be tradeable on ASX or transferable.

As an option holder you are not entitled to participate in the Entitlement Offer. The purpose of this letter is to give you notice of the Record Date.

For you to participate in the Entitlement Offer, you must exercise any options (subject to the terms of the options) and be registered as an Eligible Shareholder before 7.00 pm (Sydney time) on 4 May 2012 ( Record Date ). You should carefully consider your personal circumstances and the offer terms before deciding whether to exercise your options. If you are unsure what action you should take or have any questions about the Entitlement Offer, you should contact your stockbroker, accountant or other professional adviser.

1 TERP is the theoretical price at which shares should trade immediately after the ex-date for the Entitlement Offer assuming 100% take-up of the Entitlement Offer. The theoretical ex-rights price is a theoretical calculation only and the actual price at which shares trade immediately after the ex-date for the Entitlement Offer will depend on many factors and may not be equal to the theoretical ex-rights price.

S u r v i v i n g c a n c e r w i t h o u t c o m p r o m i s i n g l i f e s t y l e

If you do not want to exercise your options and participate in the Entitlement Offer, the exercise price of your options will be reduced in the manner permitted by the ASX Listing Rules applying at the time of the Entitlement Offer. ImpediMed will make an announcement in relation to the reduced exercise price in due course.

Yours faithfully ImpediMed Limited

___________________________________ Steve Denaro – Company Secretary

S u r v i v i n g c a n c e r w i t h o u t c o m p r o m i s i n g l i f e s t y l e