MEMPHASYS LIMITED. — Capital/Financing Update 2008

May 25, 2008

FOR IMMEDIATE RELEASE

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NuSep Cancels the Converting Note issue and Announces a Share Purchase Plan

SYDNEY, AUSTRALIA – 26 May, 2008 – NuSep (ASX: NSP) wishes to advise the market that as a result of recent shareholder feedback the Board has decided to cancel the 14% Converting Note issue and withdraw the Prospectus dated 14 April 2008.

In light of the feedback, the Company has agreed to offer shareholders the right to acquire up to $5,000 of NuSep shares under a Share Purchase Plan (SPP) at an Offer price of 8¢ per share, a significant discount to the current share price.

The record date for determining eligible shareholders for the SPP will be Friday 5pm 30 May 2008. As a sign of their support for the Company, Directors will, subject to shareholder approval, take up their entitlement under the SPP.

The proceeds of the SPP will be used to:

1. Expand sales with a view of achieving profitability on a monthly basis by: Expanding the sales and marketing of the precast gels, particularly in the US;

Growing the sales of the MF10 proteomics instrument; and Expanding NuSep's product range by introducing new and innovative products;

1. Complete the development and achieve initial sales of the SpermSep CS10 by: Undertaking the next clinical trial of the SpermSep CS10 instrument in order to commercialise this unit in the IVF market; and

Completing the development and launch of the SpermSep CS10 instrument for sale in the ICSI market.

The Company will be contacting all of the investors who applied for the Converting Notes and will refund their application monies as soon as practicable.

The Board also wishes to advise that the General Meeting scheduled to occur on 30 May 2008 has been cancelled and a new General Meeting will occur on Friday 27 June 2008 to approve the issue of shares under the SPP. The SPP will close on Monday 30 June 2008 and it is expected that the securities will commence trading on the ASX on Monday 7 July 2008.

About NuSep

NuSep (ASX: NSP) is a publicly listed life sciences company that sells products into the global bioseparations market. 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

NuSep Ltd Postal Address Contact Details Email info@nusep.com 22 Rodborough Rd P.O. Box 6126 Telephone +61 2 8977 9000 Web www.nusep.com Frenchs Forest NSW 2086 Frenchs Forest NSW 2086 Facsimile +61 2 8977 9099 ABN 33 120 047 556

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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 offers two precast gel ranges: iGels, innovative gels including long life gels with a 2 year shelf life: and NuBlu, high quality gels at an everyday price.

• Separation Instruments – NuSep has developed two unique biological separation instruments. The first instrument released in February 2008 can separate biological samples into 8 fractions for use in the proteomic market. The second instrument separates sperm for fertility treatments such as IVF and is presently undergoing clinical trials.

• 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

Contact: Prakash Patel Chief Financial Officer & Company Secretary +61 2 8977 9000 prakash.patel@nusep.com