MEMPHASYS LIMITED. — Capital/Financing Update 2013

Jul 21, 2013

==> picture [197 x 25] intentionally omitted <==

==> picture [197 x 25] intentionally omitted <==

==> picture [197 x 25] intentionally omitted <==

==> picture [197 x 24] intentionally omitted <==

FOR IMMEDIATE RELEASE

Funding Update and SPP Announcement

Sydney, Australia 22[nd] July 2013–NuSep (ASX:NSP). The Board of NuSep wishes to update the market on the recent decisions it has taken to fund and progress both its Singapore plasma subsidiary, PrIME Biologics Pte Ltd ( PrIME Biologics ) and future developments of the PrIME Technology.

PrIME Biologics Funding

Following on from the PrIME Biologics funding LOI announced to the market on 3[rd] June 2013 NuSep has received a number of enquiries from sophisticated investors to participate in the funding of PrIME Biologics. The Board of NuSep has resolved that it will offer up to 10% of its shareholding in 1% shareholding blocks to these external investors. These 1% shareholding blocks will be priced at S$665,000 each, valuing PrIME Biologics at S$66.5m (A$57m). This funding will be in addition and complementary to, the funding from any cornerstone investor.

By placing up to 10% of PrIME Biologics now NuSep starts the timeline to the cGMP milestone and allows NuSep to bring in the additional funds at a later time and at a higher valuation than the current S$66.5m (A$57m). This will enable NuSep to maintain a higher ownership in PrIME Biologics. By splitting the funding this way NuSep will be able to maintain approximately 70% of PrIME Biologics while funding it through to its first commercial sale. Further, this will enable NuSep to demerge PrIME Biologics to its shareholders at the time of its IPO and at a higher value than the current S$66.5m (A$57m) valuation.

Finalising the PrIME Biologics funding will have two immediate impacts on NuSep.

• a) NuSep will receive an order for S$1.1m (A$0.9m) from PrIME Biologics to supply the PrIME Technology cGMP manufacturing unit and associated membranes; and

• b) NuSep will receive reimbursement for the PrIME Biologics costs incurred since 1[st] December 2012.

Finally on the PrIME Biologics front, there are a number of other organisations that are looking to setup PrIME Biologics franchise facilities in other countries. These franchise facilities will be separately funded by the franchisee. The Board of NuSep has taken the active decision to slow the progress of these franchise opportunities as the initial focus has to be on funding the Singapore facility and bring the initial Singaporean therapeutic plasma products to market.

Contact Details Email info@nusep.com Telephone +61 2 8415 7300 Web www.nusep.com Facsimile +61 2 8415 7399 ABN 33 120 047 556

NuSep Holdings Ltd 30 Richmond Rd Homebush NSW 2140

Postal Address P.O. Box 2202 Homebusht NSW 2140

– 2 –

PrIME Technology Funding and Announcement of a Share Purchase Plan

While the primary focus for the Board of NuSep has been to finalise the PrIME Biologics funding, effort has also been undertaken on seeking funding for the development of the membrane manufacturing facility to make the PrIME Biologics membranes and to fund the next PrIME Technology developments. The Company is in the process of applying for research grants to support both the SpermSep and Dengue applications of the PrIME Technology. In the meantime, NuSep will undertake an SPP at 4.5¢ per share to raise up to $1.8m to fund the development of the PrIME membrane manufacturing area in its new Homebush facility. This will enable NuSep to manufacture the membranes that will be purchased by PrIME Biologics and future franchise facilities. Full details of the SPP will be released on Tuesday 23[rd] July 2013. An indicative timetable is outlined below.

Indicative Timetable

Share Purchase Plan Record Date	Friday 19thJuly 2013
Announcement of Share Purchase Plan	Monday 22ndJuly 2013
Share Purchase Plan Open Date	Tuesday 23rdJuly 2013
Share Purchase Plan Offer Closes	Monday 19thAugust 2013
Allotment and Issue of Shares	Monday 26thAugust 2013
Quotation of Shares on ASX	Tuesday 27thAugust 2013

Other Funding Matters

Board members, as significant shareholders in NuSep, are acutely aware that shareholders have supported the Company through this long development period. In order to repay that support the Board intends to make a bonus share issue once the funding for the cGMP phase is resolved. At the same time the Board will also declare a bonus share option issue. This share option will be listed and will be designed to enable shareholders to either exercise and thereby maintain their investment in NuSep/PrIME Biologics or sell on market to gain a separate return on their investment in NuSep.

Further information on the proposed bonus share issue and the proposed listed bonus share options will be made once funding for PrIME Biologics has been announced.

For more information please contact:

Contact: Prakash Patel Managing Director +61 2 8415 7300 Prakash.patel@nusep.com

– 3 –

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 based on its PrIME[1] technology. The PrIME technology has produced a number of world firsts 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 [12 x 9] intentionally omitted <==

==> picture [12 x 9] intentionally omitted <==

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

==> picture [12 x 9] intentionally omitted <==

==> picture [12 x 9] intentionally omitted <==

• Separation Instruments – NuSep has developed two unique biological separation instruments. The ProteomeSep can separate biological samples into 8 fractions for use in the proteomic market. The SpermSep separates sperm for fertility treatments such as IVF.

==> picture [12 x 9] intentionally omitted <==

==> picture [12 x 9] 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

About PrIME Biologics Pte Ltd

PrIME Biologics is a Singapore based biotech company that has developed a disposable therapeutic plasma manufacturing process based on NuSep’s PrIME Technology. NuSep has a 90% shareholding in PrIME Biologics. 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. The PrIME has been shown to remove virus, bacteria, endotoxins and prions which cause ‘Mad Cow Disease’. 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 Asian countries.

1 PrIME stands for Pr eparative I solation by M embrane E lectrophoresis