MACH7 TECHNOLOGIES LIMITED — Capital/Financing Update 2008

Jun 3, 2008

4 June 2008

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General Manager The Company Announcements Office Australian Securities Exchange Limited Australia Square Sydney NSW 1215

Dear Sir/Madam,

CONVERTIBLE NOTE ISSUE, SHARE PURCHASE PLAN & ATTACHING OPTION

Highlights:

• Convertible note capital raising has been closed, yielding $775,000 to fund the commercialisation of the company’s SecureTouch Syringes; and

• Issue of convertible notes to be followed by a Share Purchase Plan to enable non-sophisticated shareholders to participate in the capital raising.

Convertible Note

Safety Medical Products Limited (‘ SFP ’ or ‘the Company ’) is pleased to announce that its convertible note capital raising, previously announced to the ASX on 20 February 2008, has closed, successfully raising approximately $775,000.

In accordance with the terms of the Convertible Note, all applications from eligible shareholders received by the closing date have been accepted.

The funds received under the Convertible Note will be directed to the full scale commercialisation of the Company’s SecureTouch Retractable syringe, including an extensive marketing and promotional campaign to maximise sales within the health industry.

Share Purchase Plan & Attaching Option

SafetyMed’s convertible note capital raising was limited to ‘sophisticated investors’, as defined in the Corporations Act . Following feedback from shareholders, the company, the Company is pleased to announce details of a Share Purchase Plan ( SPP ) to provide shareholders with the opportunity to participate in the company’s capital raising.

Eligible shareholders will be given the opportunity to subscribe for shares, irrespective of the size of their shareholding, up to the value of $5,000 at an issue price of 10 cents per share. The issue price under the SPP represents a discount of

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Safety Medical Products Limited 25 Fenden Road, Salisbury Plain, South Australia Australia, 5109 ACN 007 817 192 Phone: (08) 8285 5226 Fax: (08) 8285 3228 Email: info@safetymed.com.au Website: www.safetymed.com.au

ASX Code: SFP

SafetyMed® is a registered trademark of Safety Medical Products Ltd

12.5% to the 5 day volume weighted average price for trades on ASX prior to the date of this announcement. The offer will raise a maximum of $1.475 million from the issue of up to 14.75 million shares.

An Attaching Option will be issued to all shareholders who participate in the SPP on a 1 for 2 basis, to reward them for their ongoing support of the Company. The Attaching Options will have an exercise price of $0.25 each and an expiry date of 31 January 2010. Attaching Options will not be transferable immediately from their date of issue; however, it is the intention of the Company to apply for the Attaching Options to be listed on the ASX, provided spread requirements under the ASX Listing Rules are able to be satisfied.

Only shareholders on the record date having an address on the Company’s register in Australia or New Zealand will be eligible to participate in the SPP.

All new shares issued under the SPP will rank equally in all respects with the Company’s fully paid ordinary shares quoted on ASX.

Shareholder approval is not required for the issue of new shares under the SPP, nor for the issue of Attaching Options, and will not be sought.

Use of Funds

The funds raised via the SPP will be used to fast track the expansion of the company’s SecureTouch range of products and to ensure that SafetyMed continues to meet its milestones and is able to explore market opportunities and secure them as quickly as possible.

In particular, funds raised under the offer will be used to construct an additional SecureTouch assembly machine, allowing the Company to expand the range of its SecureTouch Retractable syringe sizes to 2ml, 3ml and 5ml. Increasing the product range will enable SafetyMed to widen its marketing approach and attract a greater market share.

SafetyMed is heading into its most exciting growth phase since listing and is expecting to produce its maiden revenue streams in the second half of 2008.

SafetyMed is also developing a suite of other safety products with a view to releasing these into the market over the coming 12 to 18 months, with the funds raised facilitating the development of these products.

Indicative Timetable

Event	Date
Announcement of SPP	4 June 2008
Ex-entitlement Date	12 June 2008
Record Date	18 June 2008
Opening Date of the Offer	25 June 2008
Closing Date of the Offer	9 July 2008
Issue of shares and dispatch of holdingstatements	16 July 2008
Quotation of Shares on the ASX	23 July 2008

The dates are indicative only, and the Company reserves the right to vary the dates and times of the offer without notice, subject to the Corporations Act 2001 and the ASX Listing Rules.

Non-shareholders of SafetyMed may purchase shares prior to the ex-entitlement date and still participate in the Share Purchase Plan.

Shareholders are encouraged to submit their Entitlement and Acceptance Form as early as possible.

Details of the SPP and Attaching Options will be contained in an offer document and prospectus respectively, which will shortly be sent to all eligible shareholders and will include details of how to apply.

Yours faithfully,

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John Riemelmoser Managing Director

For further information please contact:

Mr. John Riemelmoser Managing Director Safety Medical Products Limited Ph. 08 8285 5226

Mr Duncan Gordon Investor Relations Safety Medical Products Limited Ph. 08 8232 8800