MEMPHASYS LIMITED. — Capital/Financing Update 2012

Mar 22, 2012

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Friday, 23 March 2012

Dear Optionholder,

Over the last few months the Company has concentrated on funding and developing the Singapore therapeutic plasma business. The establishment of a facility to produce therapeutic plasma in Singapore will enable NuSep to access the approximately $1B Asian Therapeutic Plasma market.

We are negotiating the funding for the Singapore therapeutic plasma facility. We hope to be in a position to report back to shareholders in the near term that this funding has been completed.

We have also used this time to restructure the Board concentrating on the skill sets necessary to deliver the Singapore project. A strongly focused Board and executive is an essential part of making the Singapore project a reality.

While much of the focus has been on the Singapore project, we have also quietly been pushing ahead with the existing Gels and ProteoIQ business. These businesses reached a breakeven position in the December half and we expect to see continued growth in the remainder of this financial year.

It is clear from the above that we believe the current share price does not reflect the true value of NuSep. Once again we thank you for your continued support and look forward to updating you on the funding of the Singapore project in the very near term.

Yours sincerely,

John Manusu Executive Chairman

E info@nusep.com W nusep.com ABN 33 120 047 556

NuSep Holdings Ltd 324 Burns Bay Road Lane Cove NSW 2066

Contact Details P +612 8415 7300 F +612 8415 7399

Postal Address P.O. Box 823 Lane Cove NSW 1595

ASX CODE: NSPOA 23 March 2012

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Notice to holders of 15 cent Options (ASX:NSPOA)

Dear Optionholder,

Notice is hereby given that the 15 cent Options in NuSep Holdings Limited (the “ Company”) that you hold will expire on 31 March 2012. The 15 cent options trade on the ASX under the code “NSPOA”. In accordance with ASX Listing Rules, the Company advises as follows:

1. The exercise price is $0.15 (fifteen cents) per 15 cent Option.

2. Each 15 cent Option will, if exercised, convert into one fully paid ordinary share.

3. The due date for payment for the 15 cent Option exercise is 5pm Sydney Time on 31 March 2012.

4. If you do not exercise and make payment of $0.15 per 15 cent Option by 31 March 2012 then each 15 cent Option not exercised and paid will lapse.

5. Quotation of NSPOA ends at close of trading on 23 March 2012

6. The last market price (closing price) of the Company’s ordinary fully paid shares was $0.028 (2.8 cents).

7. The highest and lowest market price of the Company’s ordinary fully paid shares during the last 3 months (i.e. between 22 December 2011 and 21 March 2012) was: Highest $0.07 on 22 December 2011 Lowest $0.028 on 20 March 2012

To exercise your 15 cent Options wholly or in part, please complete and sign the form attached with this letter and return it together with your cheque payable to “NuSep Holdings Limited” to Boardroom Pty Limited at the following address:

By Post In Person GPO Box 3993 Level 7, 207 Kent Street Sydney NSW 2001 Sydney NSW 2000

All fully paid ordinary shares issued upon exercise of the 15 cent Options will rank equally in all respects with the Company’s existing ordinary fully paid shares. The Company will apply for official quotation by Australian Stock Exchange Limited (ASX) of all shares issued upon exercise of the 15 cent options.

This notice does not relate or effect any 35 cent options that you may hold in the Company. The 35 cent options trade on the ASX under the code “NSPO” .

Application for Shares on Exercise of Options

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Barcode Reference Number

I/We being the registered holders of NuSep Holdings Limited Options (expiring 31 March 2012) each to acquire one Fully Paid Ordinary Share in NuSep Limited hereby give notice of the exercise of Options and attach hereto my/our cheque payable to “NUSEP HOLDINGS LIMITED” at $0.15 per Option in payment of such exercise.

I/We agree to my/our name/s being placed on the Register of Members in respect to the number of Shares allotted and to be bound by the Constitution of the Company.

Number of Options Held: Multiplied by the Total Payment Due: exercise price of $0.15

Accordingly, I/We enclose a cheque for the sum of A$__________________ being the correct amount for the exercise of __________________ Options.

Please Sign Here:

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----- Start of picture text ----- Shareholder 1 (Individual) Joint Shareholder 2 (Individual) Joint Shareholder 3 (Individual)Sole Director & Sole Company Secretary Director Director / Company SecretaryBusiness Telephone No. ( ) Date----- End of picture text -----

Please return to NuSep Holdings Limited C/- Boardroom Pty Limited GPO Box 3993 SYDNEY NSW 2001