MEMPHASYS LIMITED. — Interim / Quarterly Report 2008

Feb 11, 2008

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FOR IMMEDIATE RELEASE

Forecast Financials to 30[th] June 2008 On Track to Achieve Breakeven in June

SYDNEY, AUSTRALIA – 12 February 2008 – NuSep Ltd (ASX: NSP). NuSep is pleased to provide an update on current trading and anticipated results to 30[th] June 2008.

As a company with rapidly growing sales and a number of new products due to be launched in the next six months, the Board believes it is important to keep shareholders fully informed of developments and their likely impact on the Company’s financial results. It is the intention of the Board to provide such an update post the announcement of each six months financial results.

Retrospective - Results to 31[st] December 2007

The first six months of this financial year were a period of consolidation. During this period the Company:

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Expanded its gel production capacity to meet the forecast second half gel sales; Finalised the design and prepared for the February 2008 launch of the MF-10 unit;

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Undertook a clinical trial at Westmead Hospital in Sydney of the CS-10 Sperm Sorter instrument.

1. Expanded Gel Production

Gel production and in particular the product pass rate have been the focus over the last 6 months. During the period the Company has doubled its production capacity and by 31[st] December 2007 was capable of producing 35,000 gels per month. The Gels pass rate has also improved during this period and is now consistently above 75%.

2. Finalised the MF-10 Unit

The final design for the MF-10 unit occurred during the last 6 months. Production parts for the unit were ordered during this period along with marketing material and the establishment of a technical knowledge base. Sales staff were also technically trained up during this period.

3. CS-10 Clinical Studies

The IVF Clinical studies continued throughout this 6 month period. A total of 18 patients out of a trial size of 20 patients have now been processed. The data from these 18 patients is being evaluated and will be presented in the near term.

Management Discussion

During this period the Company has achieved a number of milestones as noted above. The primary issue for NuSep has been the slow growth of direct sales in the US through this period.

22 Rodborough Road � Frenchs Forest NSW 2086 � Australia � 61.2.8977.9000 � 61.2.8977.9099 fax NuSep Ltd ABN: 33 120 047 556

www.nusep.com

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In order to resolve this the Company has appointed a new US based VP for Sales and is establishing its own US distribution center. The US distribution center, while cost neutral, will also enable NuSep to operate its own customer service and technical support in real time and support the sales efforts for the soon to be launched MF-10 unit.

Australian and distributor sales exceeded budget through this period and the Company has strong forward orders through to the end of this financial year. In addition second quarter sales (1 Oct 07 to 31 Dec 07) were almost twice those of the first quarter.

NuSep has also reduced the monthly running costs of the Company throughout this period. NuSep’s major fixed cost remains the rental of its Frenchs Forest building. During this period the Company incurred approximately $0.5m in rent. This is an ongoing issue, which the Company is actively addressing.

Improvements in the Gels production across this period were significant. During this period production capacity was doubled to 35,000 gels per month and the gels pass rate increased to over 75% with the new NuBlu gels range exceeding an overall pass rate of 85%. By comparison the pass rate 18 months ago was less than 45%. The increases in the pass rate and the additional production capacity have increased the gross margin for these products.

Forecast - Results to 30[th] June 2008

The first six months of this year has laid the groundwork to rapidly grow sales, launch a number of new products and achieve breakeven on a monthly basis.

Sales

As previously advised, from November of last year the Company undertook a number of aggressive promotional campaigns. These campaigns are now showing results. Sales for the second quarter ended 31[st] December 2007 were double those of the first quarter. Looking forward, based on confirmed orders, sales for the third quarter to 31[st] March 2008 will be almost double those of the second quarter ended 31[st] December 2007.

With the launch of the MF-10 unit and a number of other new gel products, NuSep has decided to refocus its sales force. As mentioned above we have recently appointed a new VP for Sales to more aggressively grow sales.

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In addition to the above sales growth, NuSep will launch a number of new products over the next six months. The most important of these is the MF-10 separations instrument, (refer to November 2007 Shareholder Newsletter for more details). The MF-10 will be launched for sale in February 2008 and was exhibited at a US pre launch in January 2008. This unit has been beta tested over a period of 12 months. Initial feedback from the pre launch has been very positive producing a number of firm sales leads.

In addition to the MF-10, NuSep has a number of new gel products which it will launch this half. Each of these products has a unique feature reinforcing NuSep as the market innovator in the BioSeparations market.

The above growth in sales and the pending new product launches have increased our need for direct customer service in the US. As a result we are in the process of establishing our own customer service and distribution centre in Atlanta. This will enable us to further accelerate our US sales growth.

Production

Over this next six months NuSep will continue to expand production and improve the pass rate. The first production units of the MF-10 will be produced in February.

Management Discussion

The loss for the first six months was $2.6m on revenue of $0.7m. This loss is inline with the forecast budget, although the sales for the period were lower than anticipated. The forecast for the second half is a loss of $2m on sales of $1.5m, achieving a monthly breakeven in June 2008. This result sets NuSep up for a maiden full year profit in the 08/09 year.

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Sales are forecast to double during the second half as a result of the groundwork undertaken in the first half. Much of the forecast increase in gel sales are from confirmed forward distributor orders. This allows our sales force to concentrate on selling the higher margin MF-10 units and cross selling the gels with these units.

The February 2008 sales launch of the MF-10 will occur simultaneously in Australia and the US at two prestigious proteomic conferences. We expect the first sales of the MF-10 to occur in March. Revenue will be generated from sales of both the instrument and consumables.

Overall NuSep has made significant progress towards its goal of achieving breakeven by the end of June 2008 on a monthly basis. While this is an important goal it is actually more significant that the Company has achieved this goal while completing both the CS-10 clinical trials and the development of the MF-10.

NuSep now has a strong profit generator in the consistent cashflow from the Gels. This will be further boosted as the new products reach the market.

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 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 offers two precast gel ranges: iGels, innovative gels including long life gels with a 2 year shelf life: and NuBlu, high quality gels at an everyday price.

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• Separation Instruments – NuSep has developed two unique biological separation instruments. The first to be released in February 2008 can separate biological samples into 8 fractions for use in the proteomic market. The second instrument separates sperm for fertility treatments such as IVF and is presently undergoing clinical trials. Biological Products – NuSep supplies research grade biological products manufactured using its unique separation technologies. These products include human IgG and Albumin.

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Forward Looking Statements :

This press release contains forward-looking statements include all of the statements relating to NuSep’s forecasted operating results and metrics for fiscal 2008; statements regarding the anticipated benefits of our products, technologies, and services relative to the offerings of our competitors. These forward-looking statements involve risks and uncertainties, and actual results could vary. Important factors that could cause actual results to differ materially from those in the forward-looking statements include general economic and industry conditions, including expenditure trends for bioseparations products; risks associated with the anticipated growth in the bioseparations markets; our ability to deliver new products; competition risks, including our ability to design products that compete effectively from a price and performance perspective; risks with new product introductions; our ability to accurately forecast demand for our products; our ability to expand our direct sales operations; risks associated with international operations; our ability to successfully acquire and integrate complementary businesses and technologies; foreign currency exchange rate fluctuations; and other important factors as described in NuSep reports and documents filed from time to time with the Australian Securities Exchange. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

For more information about NuSep please visit the company’s website www.NuSep.com

Contact: Prakash Patel Chief Financial Officer & Company Secretary +61 2 8977 9000 prakash.patel@nusep.com