MACH7 TECHNOLOGIES LIMITED — Interim / Quarterly Report 2008

Feb 21, 2008

®

ASX and Media Announcement

FINANCIAL RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2007

22 February 2008

HIGHLIGHTS

• Commenced commercial production and sales of the 1 ml SecureTouch™ Retractable Safety Syringe.

• Received TGA approval for manufacture of the 1 ml SecureTouch™ on the custom built automated assembly machine.

• Generated revenue of $2.3 million and gross margin of $0.7 million through wholly owned subsidiaries Bagot Press and ProControl Systems.

• Raised $0.9 million in new equity capital and $0.7m in debt to further progress commercialisation of the 1 ml SecureTouch™ and finance the purchase of capital equipment.

• Received approval from Federal Department of Health & Ageing to become a syringe supplier to the National Diabetes Services Scheme (NDSS).

• Announced a convertible note issue to raise up to $3.0 m to provide sufficient funds to full commercialise the SecureTouch™.

Safety Medical Products Limited (“the Company” or “SafetyMed”) (ASX Code: SFP) is pleased to announce its financial results for the six months to 31 December 2007.

In the six month period to 31 December 2007 the consolidated Group generated revenue of $2.3 million and gross margin of $0.7 million via the wholly owned subsidiaries, Bagot Press and ProControl Systems. Continued investments in the commercialisation of the SecureTouch™ resulted in a loss of $0.8 million being incurred by the consolidated group, consistent with the prior corresponding period.

A summary of the activities of the Group for the six month period are presented below.

SafetyMed

Throughout the period significant progress was achieved towards the commercialisation of the Company’s first fully retractable safety syringe – SecureTouch™.

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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

Commercial production of the 1 ml range of the SecureTouch™ commenced in October 2007. This was a significant milestone for SafetyMed and allowed for initial sales to commence through the Company’s wholly owned subsidiary, Bagot Press. Furthermore, the availability of a commercially produced SecureTouch™ has enabled the Company to commence the process of presenting the product to the major private and public sector markets such as medical product distributors and wholesalers, public and private hospitals and Government procurements offices.

These meetings have been very positive and we are confident that they will lead to significant demand being generated for the SecureTouch™ in 2008. The recently announced listing with the National Diabetes Services Scheme (NDSS) provides the Company with further confidence in this regard.

Throughout the period discussions with our USA-based global marketing and distribution partner, Exel International, have continued and we plan to meet with them early in 2008 to make arrangements for the international launch of the 1 ml SecureTouch™.

A routine surveillance audit of the Company’s manufacturing facility was conducted by the TGA in October 2007 and as part of this audit, approval was received to produce the SecureTouch™ on the custom built automated assembly machine. This, together with the recent installation of a Multivav automated blister packing machine, allows for full scale production to be implemented as demand for the SecureTouch™ grows. The combination of this equipment will allow the Company to produce in excess of 30 million 1 ml SecureTouch™ syringes per year. Furthermore, the capacity of the Multivac packaging equipment is more than twice the output of the assembly machine, allowing for the installation of a second assembly machine when required.

Further progress has been made with regards to the Company’s Surgical Masks, Automatic Medical and Stationery Tape Dispensers and the Single-use Disposable Thermometers with sales to commence in early 2008 through both the grocery and pharmacy channels.

Bagot Press

In the six months to 31 December 2007, Bagot Press reported revenue of $1,583,000 and EBITDA of $143,000. The business has increased its sales and marketing activities during the period with additional sales representative in place and more active key account management. These activities have delivered additional contracts and provide support to the full year revenue estimate of $3.0 to $3.5 million.

As previously reported Bagot Press moved into a new premises in mid-2007 which has allowed for improvements in manufacturing efficiencies and scope to increase production as further new contracts are won.

ProControl Systems

In the six months to 31 December 2007, ProControl Systems reported revenue of $748,000 and an EBITDA loss of $21,000. This result was a significant improvement compared with the five month period to 30 June 2007 (following acquisition on 9 February 2007), when revenue of $372,000 and an EBITDA loss of $288,000 were reported.

Throughout the period ProControl Systems has managed to significantly expand its customer base, particularly in mining related activities and has won a number of significant contracts, some of which will continue to generate revenue into the second half of the 2008 financial year. Revenue for the full year is expected to be between $1.5 and $2.0 million.

Convertible note issue

As announced on 20 February 2008, SafetyMed will be undertaking a convertible note issue to raise up to $3.0 million to provide sufficient funds to fully commercialise the SecureTouch™.

As a demonstration of their confidence in the commercial potential of the SecureTouch™, the directors of the Company are planning to participate in this issue. Given that it is necessary for shareholder approval to be obtained for directors to participate in such an issue, a General Meeting of the Company will be held in March 2008. More details regarding the convertible note issue and the General Meeting can be found in the Company’s announcement of 20 February 2008.

Position of Chief Financial Officer

The Company’s Chief Financial Officer Mr. Tony Mitchell has advised that he has accepted a full-time position with another company and as such he can not continue in his current part-time role with SafetyMed. The Company would like to thank Tony for his contribution and wishes him well for the future.

Financial reporting and accounting services will continue to be provided by the Company’s external accountants and advisers. SafetyMed has identified a number of potential candidates to fill the CFO role and will advise the market with regard to this in due course.

Yours Sincerely

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John Riemelmoser Managing Director

About Safety Medical Products Limited

SafetyMed is a company focused on developing and marketing a unique range of Safety Products led by its flagship SecureTouch™Retractable Syringe. The Company’s strategy of acquiring related companies to more rapidly secure economical development, distribution and sales of its products will see it continue to achieve strong bottom line growth throughout 2007/08.

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