MACH7 TECHNOLOGIES LIMITED — Share Issue/Capital Change 2007

Feb 26, 2007

Tuesday 27^th February 2007

ASX Announcement

Issue of Bonus Options to Shareholders of Safety Medical Products Limited

Safety Medical Products Limited is pleased to announce that the Company will be proceeding with a Bonus Options Issue to all shareholders of the Company.

The Options will be free and issued for nil consideration on the basis of one (1) Option for every two (2) Shares held as at the Record Date.

The purpose of the Bonus Issue is to reward shareholders for supporting the Company and to allow further Shareholder participation in the future of the Company.

The Issue will be made to all Australian and other shareholders recorded in the respective registers and sub-registers of the Company as at the close of trading on the ASX on Friday 16^th March 2007 ("Record Date").

Details of the Bonus Options Issue are as follows:

Issue ratio: One (1) Option for every two (2) shares held at the Record Date. Exercise at any time up to and including 5pm AEST on 31^st Exercise date: December 2010. Exercise price: \$1.00 each

Please Note:

• $\mathbf{1}$ . Eligible shareholders will receive Options based on a shareholder's holding of shares as at the Record Date, divided by a factor of two and rounded down to the nearest whole number. No fractional entitlements to share options will accrue or be allocated.
• $2¹$ These Options may be exercised at any time on or before 31 December 2010.

Safety Medical Products Limited

$3₁$ Any shares in the Company that are subject to escrow as at the Record Date will have the same remaining period of escrow applied to that shareholder's Bonus Options.

The Company will make application to the ASX for official quotation of the Options, and will lodge a prospectus with ASIC over the next week and send a copy of the prospectus to each shareholder accordingly.

As the Options will be issued for nil consideration, Shareholders are not required to take any action to accept and be issued with their Entitlement of Options. However we would urge you to read the prospectus in its entirety and if you do not understand its content or are in doubt as to the course of action you should take, you should consult your stockbroker or professional adviser.

The Directors reserve the right to amend the record date and timetable, subject to the Corporations Act 2001 (Cth) and ASX Listing Rules at their discretion without prior notice.

I thank you for your support during this past year of public listing and look forward to further and continuing performance of the Company in the near future and beyond.

Dated: 27^th February 2007

Yours faithfully.

John Riemelmoser Managing Director