MEMPHASYS LIMITED. — Capital/Financing Update 2008

Mar 11, 2008

==> picture [163 x 54] intentionally omitted <==

FOR IMMEDIATE RELEASE

Expiry of listed NuSep 50 cent Options

SYDNEY, AUSTRALIA – 12 March 2008 – NuSep Ltd (ASX: NSP). Attached is the notice that has been sent out to holder of NuSep 50 cent listed options (NSPO) which expiry on 31 March 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 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:

==> picture [14 x 10] intentionally omitted <==

• 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.

==> picture [14 x 11] intentionally omitted <==

• 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.

==> picture [14 x 10] intentionally omitted <==

• 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

NuSep Ltd 22 Rodborough Rd Frenchs Forest NSW 2086

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

==> picture [163 x 58] intentionally omitted <==

7[th] March 2008

Expiry of 31[st] March 2008 Options ASX Code : NSP/ NSPO

IMPORTANT NOTICE – EXPIRY OF 50 cent OPTIONS

Dear Option Holder,

The 50 cent Options issued by the Company as part of its IPO rights issue are due to expire at 5.00pm Eastern Standard Time on 31[st] March 2008 . In accordance with the terms and conditions of the option issue and the ASX Listing Rules, the Company is required to give you notice before the expiry date. As the registered holders of «XXXXXXX» Options each to acquire one Fully Paid Ordinary Share in the capital of NuSep Ltd, the Company hereby gives notice that these options will expire on 31[st] March 2008.

The Directors are disappointed that the company’s share price is currently trading below the option price of 50 cents. However, as advised to the market on 12[th] February 2008, the Company remains on target to achieve breakeven in June of this year and expects to make a maiden profit in the 08/09 year. In addition, the MF10 instrument was launched for sale in February 2008 and Gel sales continue to grow inline with our budget.

The Board has considered a number of alternatives including repricing and extending the exercise timeframe of these options. Unfortunately, all of these alternatives require approval by NuSep’s ordinary shareholders and the next shareholder meeting is not scheduled until November 2008.

To this end the Directors would encourage option holders who wish to increase their shareholding in NuSep to acquire ordinary shares on market rather than exercise their 50 cent share options.

In accordance with the ASX Listing Rules the Company advises as follows:

1. The latest date for the exercise of the options and for payment of the exercise price is 31[st] March 2008;

2. The exercise price of the options is 50 cent per option;

3. The consequence of non-payment of the exercise price is that the options will lapse;

4. The latest available market sale price of the Company’s shares on ASX prior to the date of

NuSep Ltd 22 Rodborough Rd Frenchs Forest NSW 2086

Contact Details Telephone +61 2 8977 9000 Facsimile +61 2 8977 9099

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

Postal Address P.O. Box 6126 Frenchs Forest NSW 2086

this letter was 10.5 cents per Share on 7[th] March 2008;

1. The highest and lowest market price of the underlying securities during the three months prior to 7[th] March 2008 are set out below:

Date	Price
High- 10thDecember 2007	19 cents
Low-4thMarch 2008	10.5 cents

1. The last date of quotation of NSPO options on the Australian Securities Exchange will be 31[st] March 2008.

What you need to do:

==> picture [11 x 10] intentionally omitted <==

• If you want to purchase additional NuSep shares you should consider acquiring these on market as the shares are currently trading at around 11 cents which is significantly below the option exercise price of 50 cents per share

==> picture [11 x 9] intentionally omitted <==

• If you still wish, you can exercise your 50 cent options, however note the above comments on the current share price compared to the exercise price

• Do nothing; the options will automatically expire on 31[st] March 2008.

==> picture [11 x 9] intentionally omitted <==

To convert your NSPO options into NSP shares, complete the “ Notice of Exercise of Options Expiring 31[st] March 2008” form provided with the IPO prospectus. Alternatively you could request a form from the Company Secretary on (02) 8977 9000. Complete and sign the form and send it to the Company with the appropriate remittance amount by cheque made payable to NuSep Ltd and crossed “Not Negotiable”. Again, please note that NuSep shares are currently trading at below the option exercise price.

If you require any additional information or replacement forms please contact the Company Secretary, Prakash Patel on (02) 8977 9000 or by email cosec@nusep.com.

Yours sincerely,

Nicholas Caré Chairman