MEMPHASYS LIMITED. — Capital/Financing Update 2018

Sep 17, 2018

ASX Release 18 September 2018

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Collaboration with Monash IVF Group in Commercial Development of Felix

Highlights

• Memphasys (“MEM”) has executed a Collaborative Agreement with leading IVF specialists, Monash IVF Group (“Monash IVF”)

• Monash IVF and Memphasys to work towards the successful commercial product launch of the Felix device - which selects the most viable, least DNA-damaged sperm for human IVF procedures

• ASX-listed Monash IVF operates within the field of fertility services - one of the largest providers of assisted reproductive services in Australia and Malaysia

• Initial sales of Felix systems anticipated for end CY 2019

• The Felix technology, developed in conjunction with world renowned fertility expert, Prof John Aitken, provides a unique and critical advantage over current sperm processing methods.

Australian-based bio-separations company Memphasys Limited (ASX: MEM) (“Memphasys” or “the Company”) has entered into a Collaborative Agreement with leading IVF specialists, Monash IVF Group (ASX: MVF) (“Monash IVF”) for the commercial development of Felix, the Company’s proprietary sperm separation system.

Over the past six (6) months, Monash IVF have been working with Memphasys in testing and providing feedback on the operation of the current Felix prototype device.

With the signing of this Collaborative Agreement, Monash IVF clinicians and researchers will now provide advice on the design and operation of the new Felix device to be marketed to IVF clinics globally.

Monash IVF will take equity in Memphasys for its services and have first rights for utilising the device in Monash IVF clinics for a 12-month period when it becomes commercially available.

On the Collaborative Agreement with Monash IVF, Alison Coutts, Executive Chairman of Memphasys, said, “Memphasys is delighted to have Monash IVF as a collaborative partner, to provide vital clinical and regulatory input to assist in the commercial development of the Felix device.”

Professor Michelle Lane, Chief Research and Development Officer of Monash IVF, added, “We are very pleased to be collaborating with Memphasys. We see great potential in the Felix device to provide a new treatment paradigm for male infertility and we are keen to assist Memphasys to bring the device to commercial fruition.”

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For further information please contact:

Alison Coutts Executive Chairman Memphasys Limited +61 2 8415 7300 alison.coutts@memphasys.com

David Tasker Managing Director Chapter One Advisors +0433 112 936 dtasker@chapteroneadvisors.com.au

Terms of the Agreement

In consideration for Monash IVF’s performance of this work, MEM has agreed:

• to grant Monash IVF an exclusive 12-month license to exploit Felix and market its use in both the Australian and Malaysian IVF market places from the later of the date that Felix is first ready for commercial use and sale in each of these market places and the date of receipt of the requisite approval from the regulatory authority in each of these market places.

• to issue Monash IVF or its nominee AUD$80,000 worth of fully paid ordinary shares in the capital of MEM at its next equity capital raising, with a minimum raising of $2 million, at a deemed issue price equal to the issue price of the equity raising

About Monash IVF:

Monash IVF provides fertility treatments and diagnostic services to patients seeking reproductive assistance. Since 1973, when Monash IVF pioneers achieved the world’s first IVF pregnancy, Monash IVF has helped 35,000 babies to be born. Monash IVF continues to be at the forefront of assisted reproduction treatment innovation and is committed to support the development of new technologies to improve patient benefit.

Website: www.monashivfgroup.com.au

About Memphasys:

Memphasys Limited (ASX: MEM) specialises in biological separations for high value commercial applications. The Company’s patented membrane processes in combination with electrophoresis, the application of an electrical potential difference across a fluid, enable the separation of high value substances or contaminants from the fluid in which they are contained.

The main application of the technology is the separation of the most viable sperm cells for artificial reproduction, most particularly for human IVF.

Website: www.memphasys.com.au

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