MEMPHASYS LIMITED. — Capital/Financing Update 2022

Mar 29, 2022

ASX Release 30 March 2022

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ASX Code: MEM

Follow Up sales of Felix[TM ] System to Chinese distributor and Indian IVF Centre

Highlights:

• Follow-up sales of Felix[TM] System to:

• Womens Center in Coimbatore, India, for clinical use (cartridges only)

• Chinese company, Diagens Biotechnology Company Ltd, for research applications (console and cartridges)

• Repeat clinical order validates Memphasys business model of recurring cartridge sales (as one cartridge used per semen sample processed)

Australian-based bio-separations and reproductive biotechnology company Memphasys Limited (ASX: MEM) is pleased to advise of additional sales of its Felix[TM] System to two customers, Diagens Biotechnology Company Ltd (“Diagens”) in China and Womens Center in Coimbatore, India.

The Felix[TM] System is a patented, rapid, automated device for quickly and gently separating high quality sperm from a semen sample for use in human IVF procedures. It is proven from comprehensive in vitro testing to be more effective than current procedures in selecting quality sperm from a wider range of semen samples, including most types of poor-quality samples.

The Indian Women’s Center IVF clinic has used the initial Felix[TM] cartridges purchased in December 2021 with the Felix[TM] System console and is now ordering more cartridges. As is increasingly common practice in IVF, particularly during covid, quality embryos are frozen for future use, and the embryo is subsequently implanted to the female. The Centre is initially using the Felix[TM] Device clinically for poorer quality semen samples with high DNA fragmentation[1] .

Memphasys previously reported a sale to the Indian Women’s Center IVF clinic, a world first sale for clinical use of the Felix[TM] System, on 20 December 2021. Whilst the dollar value of that sale was not material, the sale was of significant strategic importance to the Company and therefore announced as price sensitive.

A repeat sale from the same clinic, whilst also not of material dollar value, is of even greater strategic importance than the initial sale. This is the first time that any clinical in vivo performance of the Felix[TM] System has been reported. It is significant in that the clinic has reported the Felix[TM] System is enabling excellent quality embryos to be created and that they are noticeably better than those from using traditional Density Gradient Centrifuge (“DGC”). A repeat sale is a validation that the clinic is finding the system of clinical utility.

The follow-up order from Diagens is their second order for a Key Opinion Leader (“KOL”) research customer in China. The first sale, for a research application to a Chinese KOL, was reported on 22 November 2021, and arranged by Diagens. This sale, like the first, comprises

1 DNA fragmentation index (“DFI”) of 30% or more.

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a console plus a supply of cartridges. Diagens is a Chinese company that manufactures and distributes proprietary and other IVF products to its network of 500+ assisted reproduction centres and 300+ prenatal diagnosis centres in China The order has been shipped and invoiced.

A repeat sale from Diagens, like the first, is not material in dollar value but is strategically important. Diagens is aware of the KOL in vitro test results to date which provides validation of the system’s potential to treat a wide range of semen samples. With that knowledge, Diagens is confident of making more research sales to premium reproduction medicine research institutes in China in due course.

Diagens is also working closely with Memphasys and applying for fast track “Green Channel” regulatory path for Felix[TM] to be sold in the Chinese market.

Commenting on the repeat sales, Memphasys Executive Chairman Alison Coutts said:

“It is very pleasing to receive repeat orders from existing clients, as it validates our business model and confirms the Felix[TM] System is proving effective in both research and clinical settings.

“We are now ramping up sales activities in the identified early markets, including engaging in an executive search process for a sales manager, to ensure the sales momentum continues.”

This announcement has been approved for release by the board of Memphasys Limited.

ENDS

For further information please contact:

Alison Coutts David Tasker Executive Chairman Managing Director Memphasys Limited Chapter One Advisors T: +61 2 8415 7300 T: +0433 112 936 E: alison.coutts@memphasys.com E: dtasker@chapteroneadvisors.com.au

About Memphasys:

Memphasys Limited (ASX: MEM) specialises in biological separations and reproductive biotechnology for high value commercial applications.

Reproductive biotechnology products in development include medical devices, in vitro diagnostics, and new proprietary media.

The Company’s patented bio-separation technology, utilised by the Company’s most advanced product, the Felix[TM] device, combines electrophoresis with proprietary size exclusion membranes to separate the most viable sperm cells for human artificial reproduction.

Website: www.memphasys.com

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