MEMPHASYS LIMITED. — Fund Information / Factsheet 2011

Aug 16, 2011

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FOR IMMEDIATE RELEASE

NuSep Shareholders Newsletter

Sydney, Australia 17[th] August 2011 - NuSep (ASX: NSP) wishes to advise the market that it has posted the attached newsletter to shareholders.

*ENDS*

For more information please contact:

Contact: Prakash Patel Company Secretary +61 2 8415 7300 prakash.patel@nusep.com

About NuSep

NuSep (ASX: NSP) is a publicly listed life sciences company that sells products into the global BioSeparations market. NuSep recently acquired BioInquire which developed the ProteoIQ software enabling NuSep to offer a total Proteomics solution from Fraction to Function . 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:

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

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• Separation Instruments – NuSep has developed two unique biological separation instruments. The ProteomeSep was released in 2009 and can separate biological samples into 8 fractions for use in the proteomic market. The SpermSep separates sperm for fertility treatments such as IVF and is expected to undergoing clinical trials later this year.

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• Proteomics Software – NuSep offers the unique ProteoIQ software for the analysis of complex mass spec samples. This software is also designed to identify bio markers.

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• Biological Products – NuSep supplies research grade biological products manufactured using its unique separation technologies. These products include human IgG and Albumin .

Postal Address Contact Details Email info@nusep.com P.O. Box 823 Telephone +61 2 8415 7300 Web www.nusep.com Lane Cove NSW 1595 Facsimile +61 2 8415 7399 ABN 33 120 047 556

NuSep Holdings Ltd 324 Burns Bay Rd Lane Cove NSW 2066

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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 procedure for the processing of plasma proteins. PrIME Biologics is currently a wholly owned subsidiary of NuSep Holdings Limited (ASX: NSP). 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. 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 countries.

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NEWSLETTER

August 2011

Vol 5 Issue 1

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From the Chairman

Welcome to NuSep’s August 2011 Shareholder Newsletter. In the December 2010 Newsletter, I used the phrase ‘Carpe Diem’ (‘ Seize the Day !’) to describe our mantra at NuSep. These words aptly describe the events of the last 6 months. First, the exciting developments in Singapore, followed by the Philippines, and now we are engaged in discussions with a number of other countries, and not just in Asia.

In this Newsletter we discuss the value of the PrIME[1] technology, and why there is so much interest in it right now. The Singapore project and others being currently negotiated, signal that the PrIME technology has reached its ‘ Tipping Point ’. These

countries realise that the PrIME technology can help them to significantly increase the supply of Therapeutic Plasma products, saving thousands of lives and millions of dollars in public health expenditure from plasma that they were otherwise throwing away. I think this is a Carpe Diem moment by any measure!

In light of the recent turmoil in the share market, the Board has decided to extend the Share Purchase Offer ( SPO ) until 26[th] August 2011. Funds raised will be used to accelerate the sales growth of the Gels/IQ and partially fund the Singapore project. The SPO enables our loyal shareholders to increase their shareholding at a discount to the current share price without incurring any brokerage or other costs. More importantly, taking up the SPO will enable shareholders to increase their shareholding ahead of the 30th September 2011 pro rata 1:2 15¢ Bonus Share Option entitlement . The funds raised from these share options will be used to complete the clinical trial and marketing of the SpermSep.

Further, the Directors strongly believe in the future of NuSep and have shown their support by actively buying shares on market and partially underwriting the SPO. As a Board we encourage you to participate in the SPO which closes on Friday 26[th ] August 2011.

Yours Sincerely,

John Manusu Executive Chairman

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Human Plasma contains multiple products just like a barrel of oil

1 PrIME stands for Pr eparative I solation by M embrane E lectrophoresis and is the technology used by NuSep to fractionate human plasma.

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Therapeutic Plasma – Liquid Gold

In many respects, human plasma is like oil. A barrel of oil sells for approximately US $100 per 159L barrel. By comparison, one litre of plasma costs about US $120. A barrel of oil can be fractionated into a multitude of different products. Human plasma is estimated to contain over 3,000 different proteins, of which only about 10 are currently used therapeutically.

Most countries collect whole blood which is used for blood transfusions. If this blood is not used for a transfusion, it is split into red cells, white cells and plasma. In many countries, this plasma has not been tracked from the original donor, and therefore cannot be exported to a fractionator. This plasma is discarded and accounts for up to 50% of all the plasma collected in many countries. This is what we call Currently Unprocessable Plasma . The PrIME can process this plasma as it is a disposable manufacturing system and has an additional viral and bacterial removal capacity. That is, the PrIME process itself separates these pathogens. In addition, using existing technology, about half of the therapeutic products are lost in the production process. In effect, only 25% of the potential therapeutic products are produced from each litre of plasma . This is shown diagrammatically below.

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Only 25% of the plasma collected in many countries is turned into therapeutic products.

With the PrIME process, these countries can recover 90% of the therapeutic plasma products.

Breakdown of Plasma Collection

The PrIME Technology

The PrIME process is a disruptive technology and the Currently Unprocessable Plasma application provides NuSep with a unique market from which to launch this technology. Once the PrIME is established in the Currently Unprocessable Plasma market it can then move back into the main Therapeutic Plasma market[2] .

• Significantly increase the supply of Therapeutic

• Plasma products, going some way to reduce the shortage of these life saving products;

• Produce products like IVIG, which are from indigenous

• donors and therefore better able to treat diseases which are local in origin;

• The PrIME process helps these countries to become

• self-sufficient, something that WHO has now mandated[3] ; and

What is the Value of the Currently Unprocessable Plasma Market?

Every 50,000L of Currently Unprocessable Plasma that is processed using the PrIME will generate approximately $30m of Therapeutic Plasma Products. Based on the Singapore facility model, this will generate a profit of approximately $15m pa.

While the economics is powerful, adopting the PrIME process becomes compelling to the Governments of these countries as it helps them:

• Contributes significantly to reducing their public health budgets.

As a further sign of how valuable the Currently Unprocessable Plasma application is, both Government and industry have now agreed to support our Singapore project. NuSep believes the Currently Unprocessable Plasma application provides the market entré for this disruptive technology, similar to the small volume, low cost and local supply that enabled the Mini Mills to enter the US steel market. This is why we believe the PrIME Mini Mill has now reached its ‘Tipping Point’ .

2 See the Shareholder December 2010 Newsletter for more information on the Singapore project and the US$10B Therapeutic Plasma Market.

3 World Health Organisation - 63 World Health Assembly 10-12 May 2010, Resolution 63.12 - Availability, Safety & Quality of Blood Products.

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The PrIME Facility in Singapore: Now a Reality!

The Singapore plasma project is now well and truly underway. Since the December 2010 Shareholder Newsletter we have:

• Selected a new, larger location in TechView located in

• Kaki Bukit in Singapore. This is a 1500m[2] facility and will be NuSep’s Asian Headquarters;

• Appointed both the Directors of GMP Operations and

• Regulatory Affairs;

• Received funding and economic support from the Singapore

• Economic Development Board ( EDB ); and

• Signed a LOI with United Laboratories ( Unilab ) for an

• investment into the Singapore facility and the concurrent right to build a PrIME fractionation facility in the Philippines.

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The Singapore PrIME facility showing the flow of products through the facility

The Singapore plant will house 5 PrIME units capable of processing up to 150,000L pa. First sales are budgeted to occur in the 2013 calendar year and by 2017 we are budgeting to process 80,000L pa. This budget allows significant room for additional sales growth. The Singapore facility will fractionate four products: IVIG, Albumin, Factor VIII and Factor IX. Factor VIII and Factor IX are both high value clotting factors associated with haemophilia. The Net Present Value (NPV) of this project is $17m using a 15% discount rate. The Internal Rate of Return (IRR) on this project is 33% . This NPV and IRR have been calculated on profits up to 2017 only.

The Philippine Opportunity and Beyond

On 27th July 2011, NuSep announced it had signed a Letter of Intent with Philippine pharmaceutical company Unilab for an investment in the Singapore project and concurrent investment in a Philippines PrIME facility. Unilab is particularly interested in setting up a PrIME facility in the Philippines to fractionate Currently Unprocessable Plasma . Today the Philippines market is a fraction of the A$400m Australian market[4] , although on a population basis it should be four times the Australian market size. Currently, there is a major shortage of albumin and IVIG in the Philippines, and only those who can afford to import these products get access to them. This is just one, but very important reason why the PrIME process is so attractive to these countries.

Part Settlement of US Intellectual Property Legal Case

NuSep has successfully settled its US intellectual property legal case on its patented analytical gel cassettes with Thermo Fisher Scientific Inc ( Thermo ). The terms of this settlement are confidential.

NuSep is pleased with the settlement and believes it was important to undertake this legal action to protect the Company’s intellectual property and the profits this intellectual property can generate.

The Company continues to vigorously pursue this intellectual property case against Expedeon. The settlement with Thermo shows the commercial value of defending our intellectual property. To this point, early discussions have occurred with Expedeon to settle this matter.

NuSep signs 3 Year Gels Distribution Agreement - Minimum Purchase of $850,000 over first 15 Months

In June 2011, NuSep signed a new three year Gels distribution agreement with Thermo. This agreement has a minimum guaranteed purchases commitment of US$850,000 over the first 15 months. Thermo is one of the world’s largest life sciences supply company with turnover of approximately $11billion.

This distribution agreement will provide customers access to NuSep’s nUView gels in the Bio-Rad and Invitrogen format cassettes, which account for approximately 90% of all the gels sold in the US. The minimum purchases amount of $850,000 over the first 15 months represents a doubling of NuSep’s Gel sales over the last financial year. This is a significant distribution agreement for NuSep, as it strengthens our relationship with one of the world’s premier Life Science companies and gives us worldwide reach for our Gel products. This Global distribution agreement forms the foundation on which NuSep will build to achieve its goal of a 10% market share of the Gels market.

First sales are due to occur in August with a launch by Thermo of the nUView gels in September 2011.

4 The National Blood Authority of Australia 2009-2010 Annual Report page 34.

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Strategic Global Distribution partnerships

Over the last six months, with the launch of a number of new products, NuSep has been able to attract a number of new distributors around the globe. The 3 year supply agreement with Thermo representing the jewel in the crown of these agreements. In addition to Thermo, we have appointed 6 new distributors in Asia, significantly expanding the NuSep brand in this market. We continue to grow our global network with significant interest for NuSep products in Europe and North America from current partners and prospective new partners.

NuSep Launches ProteoIQ V 2.2 at ASMS

ProteoIQ version 2.2 was launched at the June 2011 American Society of Mass Spectrometry (ASMS) conference in Denver. ASMS is the premier meeting for Mass Spec practitioners in America with approximately 10,000 attendees.

The ProteoIQ software was written up as the preferred software in over 14 posters presented at this prestigious meeting. This is the first time that the ProteoIQ software has received such wide ranging support and reflects the clear advantage that this software offers.

NuSep has also revised the pricing model by offering a yearly license in addition to the outright purchase option. This will enable researchers to ‘buy and try’, and reduces the cost of the software below the $5,000 capital budget level. Sales of the ProteoIQ software continue to grow.

Keeping Up With The Social Network

From March to April 2011, NuSep ran a promotion: “Show Us Your Gels!” where entrants received nUView gels and ran them to post a picture on NuSep’s Facebook site. The researchers’ associates then went on, and voted for their favourite gels picture. The winner was Sandeep Anne from the University of Arizona USA, who received a year’s supply of nUView gels with his image, “Angry Birds HSA“.

The number of people “ liking ” the NuSep page increased by 85% due to this promotion, demonstrating the importance of social media in today’s marketing strategies.

Find us on: NuSepInfo NuSep @NuSepInfo

Prof John Aitken inducted into the Australian Academy of Science and update on SpermSep

In May 2011, Professor John Aitken from the University of Newcastle and Chairman of NuSep’s Scientific Advisory Committee, was inducted into the Australian Academy of Science and presented at the New Fellows seminar on Wednesday 4[th] May 2011 in Canberra. This event is an annual three day event held by the Australian Academy of Science.

Professor Aitken is the inventor of NuSep’s Sperm Separation device and was honoured for his contribution in the IVF (in vitro Fertilisation) field. NuSep is particularly proud that this work resulted in two papers accepted for publication using the SpermSep. These papers emphasise that the SpermSep system generates no sign of oxidative stress (i.e. DNA damage in the sperm) even in extreme circumstances. Professor Aitken also suggested an additional clinical application of the SpermSep which NuSep will develop post the commercial launch of the SpermSep.

This seminal work by Professor Aitken further enhances the commercial value of NuSep’s SpermSep Instrument. NuSep is finalising the production version of the SpermSep instrument and expects to start the final clinical trials of the SpermSep next year. Currently there are 45,000 IVF cycles conducted each year in Australia valuing the consumable value of the SpermSep at A$5m pa. Worldwide there are 1m cycles conducted each year valuing the worldwide market at $100m.

The Company anticipates that it will cost approximately $1m to undertake these clinical trials and associated marketing launch which will be funded by the Bonus 15¢ Share Options that expire on 31[st] March 2012.

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324 Burns Bay Road Lane Cove NSW 2066 Phone: 1800 500 108 Fax: 1800 824 109 Email: sales@nusep.com Web: www.nusep.com

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