MEMPHASYS LIMITED. — Capital/Financing Update 2009

Sep 1, 2009

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1[st] September 2009

Dear Shareholder,

Share Purchase Offer - Closing on Friday 4[th] September 2009

NuSep is pleased with the response so far to our Share Purchase Offer (SPO) and wishes to confirm the closing date of Friday 4[th] September 2009. Given the increase in NuSep’s share price the Board of NuSep would also like small shareholders to be aware of their financial options.

In particular smaller shareholders can:

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• Increase their shareholding at 20 cents by acquiring new shares under the SPO;

• Purchase additional shares on the ASX to increase their shareholding; Sell their current shareholding on the ASX.

NuSep’s shares are currently trading at 34 cents (Tuesday 1[st] September 2009). Shareholders are being offered the opportunity to buy up to $10,000 worth of new shares (62,500 shares) at 20 cents, including the 1:4 bonus loyalty shares. This is a discount of approximately 40% from the current share price.

NuSep has over 1,000 shareholders who hold less than 200 shares in the Company. These shareholders represent a significant cost to the Company, money that could be better spent on growing the Company. The SPO has been offered by the Company as a way for these shareholders to increase their holding at 20 cents per share.

The Board encourages all small shareholders to consider their financial situation and take one of the three actions listed above. For further clarification please refer to the Share Purchase Offer Prospectus dated 10[th] August 2009 available at www.NuSep.com and/or contact your financial advisor for further advice.

The most recent trading price was 34 cents on 1[st] September 2009. The highs and lows of NuSep’s share prices since relisting on 15[th] July 2009 can be seen in the table below:

Date	Price
High- 23rd July 2009	40 cents
Low- 13th August 2009	19 cents
Last– 1st September 2009	34 cents

Shareholders who have already taken up the offer, but for an amount less than the maximum subscription of $10,000 (62,500 shares including the 1:4 bonus) are able to apply for additional shares prior to the revised close date of 4[th] September 2009 .

324 Burns Bay Rd � Lane Cove NSW 2066 � Australia � 61.2.9420.8384 � 61.2.9427.8614 fax NuSep Ltd ABN: 33 120 047 556

www.nusep.com

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If you require any additional information or replacement forms please contact the Company Secretary, Prakash Patel on (02) 9420 8384 or visit the company website www.NuSep.com.

Yours sincerely,

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John Manusu Executive Chairman