NANOSONICS LIMITED — AGM Information 2008

Nov 17, 2008

Nanosonics Limited (NAN) Annual General Meeting

18th November 2008

Proceedings

• Opening and Welcome
• Quorum
• Ordinary business
• Resolution 1 Election of a Director Dr David Fisher
• Resolution 2 Election of a Director Mr David Radford
• Resolution 3 Election of a Director Dr Ron Weinberger
• Resolution 4 Adoption of Remuneration Report
• Special business
• Resolution 5 Issue of options to a Director Mr David Radford
• Resolution 6 Issue of shares to a Director Mr David Radford
• Resolution 7 Issue of shares to a Director Dr Ron Weinberger
• Update and progress
• General business
• Closure

Annual General Meeting (NAN) Maurie Stang - Non-Executive Chairman

18th November 2008

Infections are a worldwide and widespread problem in today's healthcare environment

• Australia:

150,000 healthcare associated infections and 7,000 deaths each year

• United States: 2 million healthcare associated infections and 100,000 deaths each year
• Europe, e.g. United Kingdom: Significant rise of MRSA and Clostridium difficile deaths

Real World Problems

Expansion through partnerships

Nanosonics` NanoNebulant™

OEMs / Global Medical Co`s

• World-Class sterilisation+ tech
• Rapid, instrument friendly process
• Standards compliant process Offering
• Risk mitigation

• Value added products

• Instrument friendly process
• Additional revenue opportunities
• Differentiation & Reg compliance
• Channel synergies
• Short time to market

Requirements

Collaboration

• Nano develops OEM specific devices
• OEM funds all Nano's Prod Dev costs
• OEM receives global dist agreement
• Nano to manufacture & transfer to OEM

Business Overview David Radford - Director and CEO

18th November 2008

Highlights

• EN ISO 13485:2003 quality approval
• CE Mark obtained in May 08
• IP Portfolio of 10 patents
• CMDCAS approval in Sept 08
• Distributors appointed Scandinavia, Germany, France, Italy, Switzerland, New Zealand and Australia
• NZ approval to market Nov 08
• Release in Australia on plan, pending TGA approval
• Prototype final testing December 08
• Manufacturing scale up Jan 09

Business Metrics 2008

Category	Date	Amount
Quoted shares on issue	@ 15 October	103 million
Total shares on issue	@ 15 October	195 million*
Cash on hand	@ 30 September	A\$ 22 million
Cash burn	@ 30 September	A\$ 0.7 million monthly
Share price	@ 14 November	A\$ 0.18
Market capitalisation	@ 14 November	A\$ 35.1 million
Number of patents / patent applications	@ 30 September	10

* Including 92 million shares that will be released from escrow on 17 May 2009

Our Shareholders

Competencies

Role	PhD	Masters	Bachelor Deg.
Material Sciences	1
Chemical Sciences	7	3	5
Bacteriology/Virology	2	1	3
Physics	1
Industrial Design			4
Electrical Engineering			5
System Engineering		2
Business / Operational		4	9

Company Strategy

• Develop and commercialise novel and innovative solutions for use in the prevention of microbial contamination
• Trophon EPR demonstrates proof of concept and expandability of our technology into new product manifestations.
• Targeted markets include healthcare, food and environmental sectors
• IP Portfolio as a source of competitive advantage
• Customer centric solutions globally
• Company capabilities from R&D through to commercialisation

NanoNebulant™: A Breakthrough Technology

Nanosonics' Patent Families

Granted Patents

• Improved Disinfection
• Quaternary Ammonium Compound Liquid Disinfectant

Membrane Sterilisation (national phase)

Membrane Concentrator (national phase)

Space Disinfection (national phase)

Improved Aerosol (national phase)

Membrane Vapour Concentrator (national phase)

Provisional

• Sub-cycle Based Disinfection System
• Aerosol Sensor
• Safe Chemical Delivery System

Trophon - A breakthrough in the world of medical disinfection

Latest USA CDC guidelines

• Supports the need for HLD for intracavity ultrasound probes between patients
• Supports that aldehydes residues may be toxic for use in certain endo-vaginal procedures, particularly to embryos
• States that aldehydes damage ultrasound probes even though manufacturers have recommended them in the past
• Identifies that use of other procedures e.g. alcohol and chlorine are not supported
• Recommends disinfection using a hydrogen peroxide product that is not toxic to staff, patients, probes and retrieved cells

Guidelines for Disinfection and Sterilization in Healthcare Facilities 2008, Department of Health and Human Services USA

Target Market Size

Country/ Region	Radiology intracavity	O&G intracavity	Other targeted	Total targeted market	Total available market
ANZ	0.5M	1M	0.2M	1.7M	5.8M
Europe	7M	16M	3M	26M	70M
Canada	0.4M	0.9M	0.2M	1.5M	3.6M
US	7M	11M	9M	27M	87M
Asia	8.2M	17M	22M	47.2M	215M
Japan	3.4M	13M	12M	278.4M	76M
Total world market	29.9M	71.9M	58.4M	160.2M	457.4M

Established

• Head office
• In-house Manufacture
• OEM and Dealer channel
• Contracted Consumable Manufacture
• Contracted Device Manufacture

Established

• European Sales office
• Business Development Manager
• Statutory entity (legal protection)
• Appointment of dealer network
• Contracted Consumables Manufacture

Envisaged

• Sales office
• Appointment of dealer network
• Contracted Consumables Manufacture

International Sales & Service Office Hamburg (Germany)

Envisaged

• Joint Venture
• Sales office
• Contracted Consumables Manufacture

International Sales & Service Office Hamburg (Germany) Regional Office Asia/Pacific Headquarters Sydney (Australia) Regional Office USA

Appointment of Distribution Channels

Country / Region	Dealer Status
Australia	✔
New Zealand	✔
France	✔
Germany	✔
Italy	✔
Scandinavia	✔
Switzerland	✔

Future Distribution Channels FY09

Country / Region	Dealer Status
UK	Final Negotiations
Benelux	Final Negotiations
Canada	Final Negotiations
Spain	Final Negotiations
Poland	Final Negotiations
Russia	Final Negotiations
Portugal	Final Negotiations

Production Capacity

Manufacturing Roll-Out strategy is;

• Flexible

In-house or outsourced

• Scalable

Handle volume increases

• Transferable

Can be relocated

• Responsive

Rapid handling of demand fluctuations

Production Timeline

• Extensive tooling program for custom designed parts Total value of A\$850,000
• Procurement of electronic components completed
• Additional parts on track for completion by December 2008
• Production of tooled parts on track for completion by December 2008
• Production systems (MRP/ERP, automated test systems and warehousing) up and running by December 2008
• Commercial production on target to commence in January 2009

Expanding the product range

NanoNebulant technology is transferable and highly scalable to other applications

Work in progress

Small endoscope disinfector/steriliser	Space disinfection	Automated endoscope washer and disinfector/steriliser
Market potential: > \$400M	Market potential:> \$1.9B	Market potential: > \$1B

Summary

• The Company is on track for commercialisation of the Trophon EPR in Q3-FY09
• Trophon EPR demonstrates proof of concept and allows for expansion into new products. Strong product pipeline developing healthcare and non-healthcare sectors
• The Company is developing its IP Portfolio as a source of competitive advantage