MEMPHASYS LIMITED. — Annual Report 2011

Aug 30, 2011

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FOR IMMEDIATE RELEASE

NuSep announces Full Year Results

Sydney, Australia 31[st] August 2011 - NuSep (ASX: NSP) wishes to advise the market of the preliminary full year results to 30[th] June 2011. This result is in line with our full year guidance released to the market on Wednesday 27[th] May 2011. In Summary:

Revenue $1,799,710 Gross Margin $1,115,159 Operational Loss ($2,508,596) Abnormal – Net Impairment of BioInquire Investment ($3,170,828) Net Loss ($6,563,463)

The company reported an operational loss of $2,508,596 for the period. This includes an expenditure of $1.2m spent on the PrIME Biologics project in Singapore and $380,000 on legal expenditure. This result was achieved in spite of the negative foreign exchange movement against the US$ impacting on the Gel Division’s profitability.

As previously announced, NuSep will hold a General Meeting to approve the Share Purchase Offer and as part of this the Company will address the full year accounts. The General Meeting will be held at 10am on Friday 9[th] September 2011 at the offices of Bartier Perry on Level 18, 133 Castlereagh St, Sydney.

See the attached 4E.

*ENDS*

For more information please contact:

Contact: Prakash Patel Company Secretary +61 2 8415 7300 prakash.patel@nusep.com

About NuSep

NuSep (ASX: NSP) is a publicly listed life sciences company that sells products into the global BioSeparations market. NuSep recently acquired BioInquire which developed the ProteoIQ software

Contact Details Telephone +61 2 8415 7300 Facsimile +61 2 8415 7399

Email info@nusep.com Web www.nusep.com ABN 33 120 047 556

NuSep Holdings Ltd 324 Burns Bay Rd Lane Cove NSW 2066

Postal Address P.O. Box 823 Lane Cove NSW 1595

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enabling NuSep to offer a total Proteomics solution from Fraction to Function . The company has offices in both Sydney Australia and Atlanta, USA.

With a 30 year heritage in biological separations, NuSep has forged a world class reputation for its innovative yet simple biological separation techniques including the world’s first IVF sperm separation device. In short NuSep has redefined the BioSeparations market through innovation and simplification.

NuSep’s world renowned research team has developed an extensive portfolio of patented products. In all, NuSep currently manufactures, distributes and sells 55 products to customers in the USA, Europe, Asia and Australia.

NuSep Products:

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• Gels – NuSep manufactures and sells precast gels including the innovative nUView Gels, which can be visualised 2 minutes after use.

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• Separation Instruments – NuSep has developed two unique biological separation instruments. The ProteomeSep was released in 2009 and can separate biological samples into 8 fractions for use in the proteomic market. The SpermSep separates sperm for fertility treatments such as IVF and is expected to undergoing clinical trials later this year.

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• Proteomics Software – NuSep offers the unique ProteoIQ software for the analysis of complex mass spec samples. This software is also designed to identify bio markers.

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• Biological Products – NuSep supplies research grade biological products manufactured using its unique separation technologies. These products include human IgG and Albumin .

For more information about NuSep please visit the company’s website www.NuSep.com

About PrIME Biologics Pte Ltd

PrIME Biologics is a Singapore based biotech company that has developed a disposable procedure for the processing of plasma proteins. PrIME Biologics is currently a wholly owned subsidiary of NuSep Holdings Limited (ASX: NSP). PrIME Biologics process is based on the Pr eparative I solation by M embrane E lectrophoresis (PrIME) technology developed by NuSep. PrIME provides disposable modular processing that is ‘electronically’ driven membrane fractionation.

The PrIME process increases product yields to over 90% relative to the existing process 50% while increasing product safety. Further, PrIME Biologics process can produce multiple plasma products in hours compared to days, which is required by the current manufacturers.

The initial application for the PrIME process will be the Currently Unprocessable Plasma which represents approximately 50% of all the plasma collected in many countries.

NuSep Holdings Ltd Preliminary Final Report 30 June 2011

Appendix 4E

Preliminary final report

Name of entity

NuSep Holdings Ltd

ABN or equivalent company reference 33 120 047 556

Financial year ended (‘current period’)

30 JUNE 2011

For announcement to the market

For announcement to the market	For announcement to the market	For announcement to the market	For announcement to the market
$A’000
Revenues from ordinary activities Gross Profit Margin Down Down 25% 25% to to 1,800 1,115 Operating profit (loss) Down 415% to (2,509) Profit (loss) from ordinary activities after tax attributable to members Down 299% to (6,563) Net profit (loss) for the period attributable to members Down 299% to (6,563)
Dividends (distributions)		Amount per security	Franked amount per security
Final dividend		Nil	Nil
Previous corresponding period		Nil	Nil
Record date for determining entitlements to the dividend,	N/A
	N/A
Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cash issue or other item(s) of importance not previously released to the market: Depreciation expenses for the year was $375,881. The depreciation is not identified as a separate line in the Statement of Comprehensive Income as it is applied to the expenses that have depreciable assets. For more comments please refer attached press release.

Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cash issue or other item(s) of importance not previously released to the market:

Depreciation expenses for the year was $375,881. The depreciation is not identified as a separate line in the Statement of Comprehensive Income as it is applied to the expenses that have depreciable assets.

For more comments please refer attached press release.

30 June 2011 Appendix 4E

NuSep Holdings Ltd Preliminary Final Report 30 June 2011

1. Consolidated Statement of Comprehensive Income

Continuing operations 1.1 Revenues Revenue from sales or services Cost of Sales Gross Profit Margin Other Income Marketing General & administration Research & development Finance cost expenses Amortisation of Intangible Assets Other expenses - Impairment of Intangible Assets Total Expenses 1.2 Profit/(Loss) before income tax 1.3 Income tax	For the year ended 30 June 2011 $	For the year ended 30 June 2010 $
	1,799,710 (684,551)	2,403,548 (921,903)
	1,115,159 2,885,045 (1,313,943) (2,281,256) (404,438) (5,509) (502,648) (6,055,873) (10,563,667)	1,481,645 2,970,910 (507,880) (535,455) (5,520) (111,991) - - (1,160,846)
	(6,563,463) -	3,291,709 -
1.4 Profit/(Loss) after tax from continuing operations	(6,563,463)	3,291,709
1.5 Net profit/(loss) for the period	(6,563,463)	3,291,709
1.6 Net profit/(loss) attributable to members of parent	(6,563,463)	3,291,709
1.7 Other comprehensive income/(expense)	-	16,962
Exchange translationdifference
Other comprehensive income from continuing operations for the period	-	16,962
1.8 Total comprehensive income/(expense) for the period	(6,563,463)	3,308,671

30 June 2011 Appendix 4E

NuSep Holdings Ltd Preliminary Final Report 30 June 2011

Consolidated retained profits

Consolidated retained profits
1.9 Accumulated losses at the beginning of the financial period 1.10 Net profit/(loss) attributable to members (item 1.6)	30 June 2011 $	30 June 2010 $
	(9,677,505) (6,563,463)	(12,969,214) 3,291,709
1.11 Accumulated losses at end of financial period	(16,240,968)	(9,677,505)

30 June 2011 Appendix 4E

NuSep Holdings Ltd Preliminary Final Report 30 June 2011

2. Statement of Financial Position Current assets 2.1 Cash and cash equivalents 2.2 Trade and other receivables 2.3 Inventories 2.4 Other current assets 2.5 Total current assets	As at 30 June 2011 $	As at 30 June 2010 $
	29,009 825,720 426,740 34,343	1,200,641 1,899,368 387,065 82,557
	1,315,812	3,569,631
Non-current assets 2.6 Property, plant and equipment 2.7 Intangible assets 2.8 Financial assets 2.9 Total non-current assets	1,564,390 7,391,062 300,000	1,372,615 12,324,820 450,000
	9,255,452	14,147,435
2.10 Total assets	10,571,264	17,717,066
Current liabilities 2.11 Trade & other payables 2.12 Short term provisions 2.13 Total current liabilities	2,798,033 217,351	1,968,178 157,835
	3,015,384	2,126,013
Non-current liabilities 2.14 Other Liabilities 2.15 Long-term provisions 2.16 Total non-current liabilities	377,286 66,628	2,698,580 49,435
	443,914	2,748,015
2.17 Total liabilities	3,459,298	4,874,028
2.18 Net assets	7,111,966	12,843,038
Equity 2.19 Issued Capital 2.20 Reserves 2.21 Retained losses	22,250,401 1,102,531 (16,240,968)	21,359,095 1,161,448 (9,677,505)
2.22 Total equity	7,111,966	12,843,038

30 June 2011 Appendix 4E

NuSep Holdings Ltd Preliminary Final Report 30 June 2011

3. Consolidated Cash Flow Statement

Cash flows from operating activities 3.1 Receipts from customers 3.2 Payments to suppliers and employees 3.3 Government grants 3.4 Interest received 3.5 Finance costs 3.6 Net cash flows (used in)/from operating activities	As at 30 June 2011 $	As at 30 June 2010 $
	1,022,620 (4,015,722) 1,267,341 34,628 (5,509)	1,574,109 (4,284,599) 157,544 9,494 (85,413)
	(1,696,642)	(2,628,865)
Cash flows from investing activities 3.7 Payment for purchases of property, plant and equipment 3.8 Payment for purchases of other non-current assets 3.9 Proceeds from sale of property, plant and equipment 3.10 Payment for Investment in wholly owned subsidiary 3.11 Net cash flows used in investing activities	(567,786) (1,624,760) - -	(50,151) (1,148,960) 7,438 (1,829,268)
	(2,192,546)	(3,020,941)
Cash flows from financing activities 3.12 Proceeds from issues of securities 3.13 Shares Buy Back 3.14 Share issue costs 3.15 Proceeds from borrowings 3.16 Repayment of borrowings 3.17 Net cash flows from financing activities	2,505,458 (15,557) (133,683) 438,219 (76,881)	7,364,805 - (294,406) 150,000 (403,355)
	2,717,556	6,817,044
3.18 Net increase/(decrease) in cash held 3.19 Cash at beginning of period 3.20 Cash and cash equivalents at end of period (see Reconciliation of cash)	(1,171,632) 1,200,641	1,167,238 33,403
	29,009	1,200,641

30 June 2011 Appendix 4E

NuSep Holdings Ltd Preliminary Final Report 30 June 2011

4. Consolidated Statement of Changes in Equity

	Issued Capital $	Foreign currency translation Reserve $	Share options Reserve $	Asset revaluation Reserve $	Accumulated Losses $	Total Equity $
Balance at 30 June 2010 Movement Profit for the period Currency translation difference Total comprehensive income for the period Issue of share capital Shares Buy Back Transaction costs on share issue Revaluation of investment	21,359,095	12,267	235,617	913,563	(9,677,505)	12,843,038
	- -	- 91,084	- -	- -	(6,563,463) -	(6,563,462) 91,084
	- 1,045,886 (20,898) (133,683) -	91,084 - - - -	- - - - -	- - - - (150,000)	(6,563,463) - - - -	(6,472,378) 1,045,886 (20,898) (133,683) (150,000)
						7,111,966
Balance 30 June 2011	22,250,401	103,351	235,617	763,563	(16,240,968)

30 June 2011 Appendix 4E

NuSep Holdings Ltd Preliminary Final Report 30 June 2011

5. Reconciliation of cash

5. Reconciliation of cash
Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	30 June 2011 $		30 June 2010 $
5.1 Cash on hand and at bank 5.2 Total cash at end of period (item 3.20)	29,009		1,200,641
	29,009		1,200,641
6. Earnings per security (EPS)	30 June 2011		30 June 2010
6.1 6.2 6.3 Basic profit/(losses) per share Weighted Average number of ordinary shares used as the denominator in calculating basic earnings per share Diluted profit/(losses) per share	(10 cents) 64,303,523 (10 cents)		15 cents 21,984,747 15 cents

7. NTA backing	30 June 2011	30 June 2010
7.1 Net tangible asset backing per ordinary security	($0.01)	$0.01

30 June 2011 Appendix 4E

NuSep Holdings Ltd Preliminary Final Report 30 June 2011

8. Segment Reporting

Identification of reportable segments

The consolidated entity is organised on a global basis into the following divisions by product and service type.

Consumable Products

The development, manufacture and distributes of pre-cast electrophoresis gels and other biological products into the marketplace. Distribution is based in Atlanta, Munich and Sydney with manufacturing in Sydney.

Separations

Develops and markets the PrIME technology in both the commercial and research markets, including the ProteomeSep and SpermSep devices. The business unit is based in Sydney and Singapore.

Software

Develops and markets the ProteoIQ software which supports the entire proteomic data analysis pipeline from identification to quantification. The business unit is based in Atlanta.

Segment performance

Year ended 30 June 2011 Revenue from sales or services Revenue from outside operating activities: Interest Other revenue Total Segment Revenue Total Segment Profit/(Loss)	Consumable products Separations $ $	Software Consolidated $ $
	979,734 404,131 - 32,606 - -	415,846 1,799,710 - 32,606 2,852,439 2,852,439
	979,734 436,737	3,268,284 4,684,755
	138,755 (3,265,693)	(3,436,521) (6,563,463)

Year ended 30 June 2010 Revenue from sales or services Revenue from outside operating activities: Interest Profit on sale of assets Other revenue Total Segment Revenue Total Segment Profit/(Loss)	Consumable products Separations Software Consolidated $ $ $ $
	1,490,610 683,516 229,422 2,403,548 - 11,516 - 11,516 - 6,907 - 6,907 - - 2,952,487 **2,952,487 **
	1,490,610 701,939 3,181,909 5,374,458
	115,488 31,314 3,144,907 3,291,709

30 June 2011 Appendix 4E

NuSep Holdings Ltd Preliminary Final Report 30 June 2011

Segment assets

Opening balance 30 June 2010 Disposals/others Closing balance 30 June 2011	Consumable products Separations $ $ 4,402,576 3,919,588 (291,237) (711,456)	Software Consolidated $ $ 9,394,902 17,717,066 (6,143,108) (7,145,801)
	4,111,339 3,208,132	3,251,794 10,571,265

Matters Subsequent To The End Of The Financial Year

Since 30 June 2011 NuSep has released on 5 July 2011 an SPO prospectus to raise up to $2.1m.

Annual General Meeting

The annual general meeting will be held as follows:

Place	324 BurnsBayRoad,Lane Cove,NSW
Date	Thursday 18thNovember 2011
Time	10am
Approximate date the annual report will be available	10thOctober 2011

30 June 2011 Appendix 4E

NuSep Holdings Ltd Preliminary Final Report 30 June 2011

Compliance statement

1 The report has been prepared in accordance with the Corporation Act 2001, Accounting Standards and Urgent Issues Group Interpretations, and complies with other requirements of the law. Accounting Standards, include Australian equivalents to International Financial Reporting Standards “AIFRS”. Compliance with AIFRS ensures that the consolidated financial statements and notes of the consolidated entity comply with International Financial Reporting Standards “IFRS”.

• 2 This report, and the accounts upon which the report is based, use the same accounting policies.

• 3 This report does give a true and fair view of the matters disclosed.

• 4 This report is based on accounts that are in the process of being audited. Details of any qualifications will follow immediately they are available.

• 6 The entity has a formally constituted Audit Committee.

Signed:

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Name: John Manusu Chairman

Date: 31 August 2011

30 June 2011 Appendix 4E