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MACH7 TECHNOLOGIES LIMITED Investor Presentation 2007

Nov 6, 2007

65285_rns_2007-11-06_12187085-3805-47ba-a403-b0e5e8bec757.pdf

Investor Presentation

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INVESTOR PRESENTATION

John Riemelmoser

CEO

November 2007

A company focused on developing and marketing a unique range of Safety Products led by its flagship – SecureTouch™ retractable safety syringe

Founded in 2001 by CEO, John Riemelmoser and listed on ASX in November 2005

Two acquisitions completed in early 2007:

  • ProControl Systems in February 2007

  • Bagot Press in May 2007

Mission

SafetyMed aims to be a global medical and health products developer, manufacturer and distributor, initially through commercialisation of its retractable syringe

Safety Medical Products Group

SafetyMed

  • Development and commercialisation of innovative medical products

  • Production & sales of SecureTouch™ retractable safety syringe commenced

  • Direct sales for AU & NZ

  • Agreement with Exelint of USA for international sales

Bagot Press

  • Leading provider of printing and consumables to pharmacies

  • Customer base of >2,000 pharmacies

  • FY08 revenue projected to be $3.0–3.5m

  • Selling SecureTouch™ & other SafetyMed products

ProControl

  • Control systems and automation engineering company

  • Customer base includes large & small industrial companies

  • Designed & built SecureTouch™ assembly machine

  • FY08 revenue projected to be $1.5– 2.0m

Highlights

  • Development complete of the Company’s first full Retractable Safety Syringe, SecureTouch™.

  • Australian and European Manufacturing and Sales Certifications granted.

  • Production, Sales and distribution agreement in place with Exelint of USA.

  • Production and sales commenced in October 2007.

  • Low cost products.

  • Recent value add acquisitions.

  • Vertically integrated medical products company.

Safety Medical Products Limited is a developer and producer of a range of innovative products for the wholesale and retail medical sector.

Since listing in late 2005, SafetyMed has undergone a period of strong growth through a combination of reaching product development milestones, complementary acquisitions and distribution agreements.

Capital Structure
Shares Total
73321072
31/12/2008 $0.20 Options 20107150
31/12/2010 $1.00 Options 35394800
Average Daily Volume (3 months) 39276
52-week High/Low $1.48/$0.11
Share Price 1/11/2007 0.345

Executive Chairman Mr John Darley

Managing Director and CEO Mr John Riemelmoser Non-Executive Director Dr Joseph Nicholas MB BS (UNSW) Chief Financial Officer Mr Tony Mitchell Company Secretary & Legal Counsel Mr Bruce Hocking LLB

Medical Advisory Board Mr Bruce Hocking LLB (Chairman)

Dr John A Cross MBBS FAFOM GDPH Mr Fred Boswell BSc. Dr Paul Russell MB BS

  • Company’s primary objective.

  • Development completed with initial production and sales commencing in Oct 2007.

  • Only technology to utilise retrofitting process on current standard syringes.

  • Advantages:

  • Low cost, marginally higher than standard syringe;

  • Expandable to full range of sizes;

  • Easily adaptable and transportable manufacturing system.

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  • Exel International strategic alliance to provide access to manufacturing facilities and distribution to overseas markets.

  • Sleeve and Locking Mechanism is owned with patent pending by SafetyMed.

  • TGA and CE Certifications.

  • US based medical products Company.

  • Distribution network across US, Japan, Germany and UK.

  • Strategic alliance to manufacture and distribute SafetyMed’s SecureTouch™ Retractable syringes.

  • Committed to sales of 75 million units over initial two years;

  • Sales commitment increasing by 10% per year for five years.

  • Initial agreement for a period of five years, with an option of two further five year periods, each exercisable at SafetyMed’s discretion.

  • International Production to be based in Seoul, South Korea.

SafetyMed will receive a royalty of USD$0.0135 per unit from the Exel JV.

Year Indicative JV Forecasts
Units Sold
Gross Royalty
Revenue USD
Gross Royalty
Revenue AUD
2008
2009
2010
2011
2012
25,000,000
$343,750
50,000,000
$687,500
55,000,000
$756,250
60,500,000
$831,875
66,550,000
$915,063
$381,944
$763,889
$840,278
$924,306
$1,016,736

Exchange Rate = AUD$0.90

  • Sales in Australia are forecasted to reach 15 million units in 2008, generating revenue in the order of $2.5m at gross margin of approximately 30%.

  • Federal Government funded clean needle program first key –

  • Australian market opportunity 50m units per annum.

  • Capacity of existing assembly equipment is approximately 3 million units per month.

SecureTouch™ Certification

  • TGA Certification for the supply and sale of the SecureTouch™Retractable Safety Syringe in Australia.

  • The Company received its Australian Conformity Assessment Certification for the manufacturers of Retractable Syringes in Australia.

  • Only certified Company to manufacture Retractable Syringes in Australia.

  • CE Marking Certification for sales into 27 countries of the European Union granted.

  • Successfully demonstrated compliance to ISO 13485:2003, the International Harmonised Quality System Standard for Medical Device Manufactures

  • Recognises highest quality standards for production, warehousing, traceability and documentation procedures.

  • In September SafetyMed announced a 1 for 10 pro-rata non-renounceable rights issue to raise approximately $1.9 million.

  • Issue Price of $0.28

  • Attaching 1 for 2 Bonus Option with strike price $1.00 expiring 31/12/2010

  • A total of 1,948,833 rights were taken up, raising approximately $545,673, with 40% of existing shareholders participating

  • Under subscriptions totalled 5,142,054 shares

  • Currently placing shortfall to interested parties, of which approximately 800,000 shares have been placed or committed to:

  • Brokerage fee of 5% applicable

• Net proceeds from the Rights Issue used as working capital to finance costs associated with the commencement of full scale production and commercialisation of the Company’s SecureTouch™ syringe.

Product Development Timeline

May 2007 June 2007 Oct 2007 Nov/Dec 2007 Jan 2008 TBC

  • Aims to be a world leader in rapidly growing industry:

  • Government regulations changed to promote and enforce the use of safety syringes.

  • Expected cheapest products on the market:

  • Australian Conformity Assessment Certification: Only company certified to manufacture Retractable Syringes in Australia

  • SecureTouch automated assembly plant completed with initial production commenced in Oct 2007 and full production in early 2008.

  • Development of other products and assembly systems accelerated due to recent acquisitions.

  • Good position to capitalise on growth opportunities.

  • Knowledgeable and experienced Board.