NANOSONICS LIMITED — Capital/Financing Update 2007

Sep 18, 2007

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19 September 2007

The Manager Company Announcements Office Australian Securities Exchange

Nanosonics receives additional AusIndustry Grant funding for its Ultrasound Probe Disinfector

Nanosonics previously advised the market regarding the Federal Government grants it had received for two of its products in development.

The Company is pleased to announce that it has been successful in extending its Commercial Ready grant. AusIndustry has approved an additional payment to Nanosonics under the grant scheme which commenced in November 2005. The payment amount is $716,658 and is in addition to the original grant amounting to $2,474,147. To date Nanosonics has received a total of $5,079,665 in AusIndustry grants.

The proceeds from the Commercial Ready grant are non-dilutive and pertain to the development of the Nanosonics Ultrasound Probe Disinfector. That device is nearing the final stages of its development cycle and will shortly enter the regulatory approvals phase.

The extension to the grant arose from the Company’s new discoveries in the technology and in the design of the device, which were seen to provide enhanced performance and cost benefits.

In granting the additional funding, AusIndustry has accepted that the improvements to the device will further advance its novel and effective solution to global market demand for the disinfection of ultrasound probes.

Nanosonics is grateful for the partnership with AusIndustry and wishes to acknowledge their valuable support and contribution to the Company’s R&D and product development programmes.

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Geoff Marshall

Director and CEO

For more information please visit www.nanosonics.com.au or contact: Geoff Marshall, Chief Executive Officer, or Chris Grundy, Chief Financial Officer, on 02 9313 4399.

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Nanosonics Limited ABN 11095076896 Unit 24, 566 Gardeners Road, Alexandria NSW 2015 P: +61 2 9313 4399 F: +61 2 9317 5010 W: www.nanosonics.com.au

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About Nanosonics

Nanosonics Limited is developing a portfolio of decontamination products designed to reduce the spread of infection. The Company owns intellectual property relating to a unique disinfection and sterilisation technology which can be suited to a variety of markets.

Initial market applications are designed for the reprocessing of reusable medical instruments. The Company’s first product is designed to disinfect Ultrasound Transducers. In parallel with the commercialisation of this product, Nanosonics is also developing other medical applications and exploring opportunities for its proprietary technology in other industries.

For more information about Nanosonics please visit www.nanosonics.com.au

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Nanosonics Limited ABN 11095076896 Unit 24, 566 Gardeners Road, Alexandria NSW 2015 P: +61 2 9313 4399 F: +61 2 9317 5010 W: www.nanosonics.com.au