MACH7 TECHNOLOGIES LIMITED — Interim / Quarterly Report 2009

Jul 30, 2009

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31 July 2009

ASX and Media Announcement

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

FOR THE QUARTER ENDED 30 JUNE 2009

Highlights:

• New Pureste range being sold by Coles from early July 2009.

• Pureste marketing campaign commenced in early May 2009.

• Sale of Bagot Press business for $1.3 million completed on 1 July 2009.

Safety Medical Products (‘SafetyMed’) Group

The SafetyMed group loss for the year ended 30 June 2009 is expected to be significantly lower than the prior year’s $4.4 million loss.

SafetyMed group’s unaudited sales for the year ended 30 June 2009 are $5.8 million. The SafetyMed group is expected to make a loss of approximately $3.5 million; this loss includes $1.4 million of intangible asset impairment and $0.7 million of Pureste marketing expenditure. The loss attributable to equity holders is expected to be $3 million

Pureste Pty Ltd (‘Pureste’)

Pureste is an innovative, category-changing range of the first and only sterilised tampons, pads and panty liner products in Australia.

The Pureste range is now available through Coles, National Pharmacies and United Discount Pharmacies and will soon be in Kmart, Target, Priceline, IGA stores and other leading groups. This national retail footprint continues to expand through Pureste’s distribution relationship with Creative Brands in Melbourne.

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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

Pureste (continued)

The first major retailer to come on board, Woolworths, decided not to continue with the range at it’s recent category review and this of course will impact on the forecasts. Woolworths have invited Pureste to present the range again at the next category review later this year.

Despite this we expect Pureste sales for the year ended 30 June 2010 to be approximately $7 million, down from the previous sales guidance expectations of approximately $15 million for the first year following May 2009 marketing launch (refer to 27 March 2009 announcement). Pureste’s unaudited sales for the year ended 30 June 2009 are $0.7 million

A Nationwide marketing campaign commenced in early May 2009.

Bagot Press Pty Ltd (‘Bagot Press’)

The sale of the Bagot Press business was instigated when the company was approached by an interested purchaser and has since received advice that the price of $1.3 million is at a significant premium to what could otherwise be achieved in the open market.

In line with the extremely difficult economic climate during the financial year ended 30 June 2009, the SafetyMed group expects to impair its intangible asset investment in Bagot Press by approximately $640,000 to $214,000.

SafetyMed plan to use part of these funds to further grow the market of its Pureste Feminine Hygiene Range, which will include new marketing activities to support the now nationwide presence of these innovative products.

SafetyMed have renegotiated the banking security with the Company’s bankers, National Australia Bank. The security over the disposed Bagot Press assets has been replaced with a $500,000 three month term deposit. The term deposit will be released on maturity subject to Pureste sale targets being achieved.

Cash at 30 June 2009

Cash and cash equivalents as at 30 June 2009 amounted to $(443,514). The SafetyMed group currently has available finance facilities amounting to $9.98 million of which $2.87 million has been utilised. On the 1 July 2009 $1.3 million cash proceeds were received on the sale of Bagot Press’s business. Further details of finance facilities are disclosed in the 31 December 2008 Interim Financial Report’s Note 9 (pages 15 to 16).

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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

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.

About the ‘Pureste’ feminine hygiene product range

SafetyMed, via its 50% owned subsidiary, Pureste Pty Ltd ( ‘Pureste’ ) has developed the first and only range of sterilised tampons, pads and panty liners to be marketed and distributed across Australia and New Zealand through leading retail outlets and pharmacies.

Further information of the Pureste product range please visit: www.pureste.com.au.

For further information please contact:

Mr. John Riemelmoser Managing Director Safety Medical Products Limited Ph (08) 8285 5226 Fax (08) 8285 3228 Email info@safetymed.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

Quarter ended (“current quarter”)

ABN 26 007 817 192	Quarter ended (“current quarter”)
26 007 817 192	30 June 2009

Consolidated statement of cash flows

Consolidated statement of cash flows
Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) advertising and marketing (c) research and development (d) leased assets (e) other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes 1.7 Other (provide details if material) Direct purchases Accounting & auditing Patent & Trade Mark expenses Property rental & outgoings Consulting fees Travel Share Registry & ASX expenses Net operating cash flows	Current quarter $A’000	Year to date (12 months) $A’000
	2,021 (717) (534) - (2) (494) - 5 (108) 17 (1,029) (25) (2) (76) (13) (19) (4)	6,062 (2,620) (789) - (6) (1,247) - 9 (208) 41 (3,114) (167) (18) (252) (145) (50) (42)
	(980)	(2,546)

• See chapter 19 for defined terms.

24/10/2005

Appendix 4C Page 1

	Current quarter $A’000	Year to date (12 months) $A’000
1.8 Net operating cash flows (carried forward)	(980)	(2,546)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.10 Proceeds from disposal of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other (Stamp Duty paid following acquisition of Bagot Press. Acquisition closed 1 May 2007) Net investing cash flows 1.14 Total operating and investing cash flows	- - - - - - - - - - - - -	- - - (62) - - - - 23 - - - -
	-	(39)
	(980)	(2,585)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 Dividends paid 1.20 Other (provide details if material) Share issue costs Repayment of Convertible Notes Net financing cash flows	- - 709 (43) - (2) (25)	225 - 1,839 (151) - (30) (25)
	639	1,858
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.20 1.23 Cash at end of quarter	(341) (103) -	(727) 283 -
	(444)	(444)

Payments to directors of the entity and associates of the directors

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

1.24 Aggregate amount of payments to the parties included in item 1.2 1.25 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A'000
	10
	-

• 1.26 Explanation necessary for an understanding of 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

Financing facilities available
3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	1,484	1,484
	8,500	1,386

3.1 Loan facilities exclude Convertibles Notes of $750,000 at 30 June 2009.

3.2 Credit standby facilities include bank overdraft facilities, trade finance facilities and the documentary letter of credit facility.

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other (provide details)	209	226
		-
	(653)	(329)
	-	-
Total: cash at end of quarter(item 1.23)	(444)	(103)

Acquisitions and disposals of business entities

5.1 Name of entity 5.2 Place of incorporation or registration 5.3 Consideration for acquisition or disposal 5.4 Total net assets 5.5 Nature 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:

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Date: 31 July 2009

(Director)

Print name: John Riemelmoser

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.

2. 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.

3. 6.2 - reconciliation of cash flows arising from operating activities to operating profit or loss

4. 9.2 - itemised disclosure relating to acquisitions

5. 9.4 - itemised disclosure relating to disposals

6. 12.1(a) - policy for classification of cash items  12.3 - disclosure of restrictions on use of cash  13.1 - comparative information

7. 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.