MACH7 TECHNOLOGIES LIMITED — Interim / Quarterly Report 2008

Oct 30, 2008

Appendix 4C Quarterly report for entities admitted on the basis of commitments

31 October 2008

ASX and Media Announcement

APPENDIX 4C - Quarterly Report for entities admitted on the basis of commitments

FOR THE QUARTER ENDED 30 September 2008

Highlights:

• Total sales through the NDSS reach approximately 500,000 units.

• 120% increase in sales since full implementation in July

Safety Medical Products Limited (‘ SFP ’ or ‘the Company ’) is pleased to announce that it has achieved total sales of syringes and needles through the National Diabetes Services Scheme (NDSS) of almost 500,000 units.

This represents and increase of more than 120% from the July sales figures.

The Company began supplying the scheme as the only local provider with its SecureTouch Retractable Syringes in March, expanding the range to include standard insulin syringes and insulin pen needles in July this year.

The uptake and positive feedback about the range has been very pleasing to date and the Company is extremely confident of continuing to build on this good start to become a major supplier to this and other Government Programs in the future.

The Company is continuing to actively explore other markets and opportunities to build on its recent successful market penetration and increase cash flows.

SafetyMed expects to update the market on future plans and market developments to strengthen its position shortly.

Cash at 30 September 2008

Cash and cash equivalents at the 30 September 2008 amounted to $170,000.

About Safety Medical Products Limited

SafetyMed is a company focused on developing and marketing a unique range of innovative Safety Products led by its flagship SecureTouch Retractable Syringe. With sales volumes of its product range increasing significantly throughout 2008, the company expects to become a major supplier to the Health Industry Sector in the near future.

• See chapter 19 for defined terms.

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For further information please contact:

Mr. John Riemelmoser Mr. Duncan Gordon Managing Director Investor Relations Safety Medical Products Limited Adelaide Equity Partners Ltd Ph (08) 8285 5226 Ph (08) 8232 8800 Fax (08) 8285 3228 Fax (08) 8232 8811 Email info@safetymed.com.au Email dgordon@adelaideequity.com.au

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001, 24/10/2005.

Name of entity

Safety Medical Products Limited

ABN26 007 817 192	Quarter ended (“current quarter”)
26 007 817 192	30 September 2008

Consolidated statement of cash flows

	Consolidated statement of cash flows
	Cash flows related to operating activities1.1Receipts from customers1.2Payments for(a) staff costs(b) advertising and marketing(c) research and development(d) leased assets(e) other working capital1.3Dividends received1.4Interest and other items of a similar naturereceived1.5Interest and other costs of finance paid1.6Income taxes1.7Other (provide details if material)Accounting & auditingPatent & Trade Mark expensesProperty rental & outgoingsConsulting feesTravelShare Registry & ASX expensesNet operating cash flows	Current quarter$A’000	Year to date(3 months)$A’000
		1,371(580)(9)-( 2)(537)-2( 31)( 23)( 26)( 10)( 52)( 45)( 14)( 19)	1,371(580)(9)-( 2)(537)-2( 31)( 23) ( 26)( 10)( 52)( 45)( 14)( 19)
		25	25

• See chapter 19 for defined terms.

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	Current quarter$A’000	Year to date(12 months)$A’000
1.8Net operating cash flows (carried forward)	25	25
Cash flows related to investing activities1.9Payment for acquisition of:(a) businesses (item 5)(b) equity investments(c) intellectual property(d) physical non-current assets(e) other non-current assets1.10Proceeds from disposal of:(a) businesses (item 5)(b) equity investments(c) intellectual property(d) physical non-current assets(e) other non-current assets1.11Loans to other entities1.12Loans repaid by other entities1.13Other (Stamp Duty paid following acquisitionof Bagot Press. Acquisition closed 1 May 2007)Net investing cash flows1.14Total operating and investing cash flows	---(74)---------	---(74)---------
	(74)	(74)
	(49)	(49)
Cash flows related to financing activities1.15Proceeds from issues of shares, options, etc.1.16Proceeds from sale of forfeited shares1.17Proceeds from borrowings1.18Repayment of borrowings1.19Dividends paid1.20Other (provide details if material)Net financing cash flows	---(59)--	---(59)--
	(59)	(59)
Net increase (decrease) in cash held1.21Cash at beginning of quarter/year to date1.22Exchange rate adjustments to item 1.201.23Cash at end of quarter	(108)278-	(108)278-
	170	170

Appendix 4C Quarterly report for entities admitted on the basis of commitments

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.241.25	Aggregate amount of payments to the parties included in item 1.2Aggregate amount of loans to the parties included in item 1.11	Current quarter$A'000
		88
		-
1.26	Explanation necessaryfor an understandingof the transactions
	Consists of director fees, salaries and superannuation to directors, and consulting fees paid to director-related entities.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Not Applicable

• 2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

Not Applicable

Financing facilities available

3.13.2	Loan facilitiesCredit standby arrangements	Amount available$A’000	Amount used$A’000
		765	571
		40	0
	.

• See chapter 19 for defined terms.

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Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.	Current quarter$A’000	Previous quarter$A’000
4.1Cash on hand and at bank4.2Deposits at call4.3Bank overdraft4.4Other (provide details)	170	278
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.23)	170	278

Acquisitions and disposals of business entities

5.1Name of entity5.2Place of incorporationor registration5.3Consideration foracquisition or disposal5.4Total net assets5.5Nature of business	Acquisitions(Item 1.9(a))	Disposals(Item 1.10(a))
	Not Applicable	Not Applicable

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: (Director) Print name: John Riemelmoser

Date: 31 October 2008

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. SafetyMed continues to evaluate its cash position to ensure capital adequacy and is investigating a number of initiatives to ensure it is able to meet its commitments during the SecureTouch commercialisation process.

Appendix 4C Quarterly report for entities admitted on the basis of commitments

1. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.

   • 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

   • • 9.2 - itemised disclosure relating to acquisitions • 9.4 - itemised disclosure relating to disposals • 12.1(a) - policy for classification of cash items • 12.3 - disclosure of restrictions on use of cash • 13.1 - comparative information

2. Accounting Standards. ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

• See chapter 19 for defined terms.

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