NANOSONICS LIMITED — Capital/Financing Update 2007

Aug 12, 2007

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13 August 2007

The Manager Company Announcements Office Australian Securities Exchange

Commercial developments in Europe and other announcements

Nanosonics Limited is pleased to make the following announcements:

• Commercial developments in Europe

• New shares issued following the exercise of share options

• Change to Company Secretary

Commercial developments in Europe

As previously foreshadowed by the Company, it has undertaken commercial discussions with a number of parties in Europe. These discussions have covered the distribution of the NanoNebulant™ ultrasound probe device in Europe, technical and other strategic collaborations. The Company is delighted with the progress of these discussions, which are both productive and moving towards finalisation in the short term. To support this conclusive progress, Nanosonics has now set up a formal legal entity in Europe, Nanosonics Europe GmbH. This German-based operating subsidiary is an important step, creating a local presence to support the Company’s partners in the European Union. To this end Nanosonics has engaged a business manager to coordinate and drive its European operations.

Mr Alfred Mueller will be Nanosonics’ European business unit manager and will report directly to the global head of market and business development, Mr Olé Stockhausen. Alfred has significant experience in managing medical device businesses in the European Union, representing major Italian and United States medical corporations over the past 12 years. The addition of Mr Mueller to the business development team will enable Nanosonics to implement the distributor agreements and supply chain channels required to successfully commercialise its first product throughout the European economic region.

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

Commercial developments in Europe and other announcements (continued)

13 August 2007

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Issue of shares

As a result of shareholder options being exercised, 216,680 new shares have been issued for an additional $65,004 in contributed equity. ASX Appendix 3B is appended.

Change to Company Secretary

Following the appointment on 4[th] June 2007 of Mr Chris Grundy as CFO and Company Secretary, Mr Radek Mierzejewski has resigned as joint Company Secretary. Mr Robert Waring and Mr Chris Grundy continue in office as joint Company Secretary.

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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.

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

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

Appendix 3B

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New issue announcement, application for quotation of additional securities and agreement

Name of entity:

NANOSONICS LIMITED ABN 11 095 076 896

We give ASX the following information.

Part 1 - All issues

1 +Class of +securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities Do the+securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: •the date from which they do •the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment •the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 7 Dates of entering+securities into uncertificated holdings or despatch of certificates	Ordinaryshares, fully paid
	216,680
	Rank equally in all respects withordinary shares on issue
	Yes
	$0.30 pershare
	Options exercised
	31 July 2007

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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

Appendix 3B New issue announcement

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8	Number and +class	of	all
	+securities quoted	on	ASX
	(_including_the securities in clause 2
	if applicable)
9	Number and +class	of	all
	+securities not quoted	on	ASX
	(_including_the securities in clause 2
	if applicable)

• 1 Dividend policy (in the case of a 0 trust, distribution policy) on the increased capital (interests)

• Part 2 - Bonus issue or pro rata issue 1 Is security holder approval 1 required? 1 Is the issue renounceable or non2 renounceable? 1 Ratio in which the[+] securities will 3 be offered 1 +Class of +securities to which the 4 offer relates 1 +Record date to determine 5 entitlements 1 Will holdings on different registers 6 (or subregisters) be aggregated for calculating entitlements?

• 1 Policy for deciding entitlements in 7 relation to fractions 1 Names of countries in which the 8 entity has[+] security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7.

• 1 Closing date for receipt of 9 acceptances or renunciations

Part 2 - Bonus issue or pro rata issue

Number	+Class
194,535,923	Ordinary shares, fully paid
Number	+Class General share options Employee share options
9,654,260
6,915,000
New shares rank immediately for dividends and equally with all other ordinary shares on issue

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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

Appendix 3B New issue announcement

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2	Names of any underwriters
0
2	Amount of any underwriting fee or
1	commission
2	Names of any brokers to the issue
2
2	Fee or commission payable to the
3	broker to the issue
2	Amount of any handling fee
4	payable to brokers who lodge
	acceptances or renunciations on
	behalf of+security holders
2	If the issue is contingent on
5	+security holders’ approval, the
	date of the meeting
2	Date entitlement and acceptance
6	form and prospectus or Product
	Disclosure Statement will be sent to
	persons entitled
2	If the entity has issued options, and
7	the terms entitle option holders to
	participate on exercise, the date on
	which notices will be sent to option
	holders
2	Date rights trading will begin (if
8	applicable)
2	Date rights trading will end (if
9	applicable)
3 0	How do+security holders sell their entitlements_in full_through a
	broker?
3 1	How do+security holders sell_part_ of their entitlements through a
	broker and accept for the balance?
3 2	How do+security holders dispose of their entitlements (except by sale
	through a broker)?
3 3	+Despatch date

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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

Appendix 3B New issue announcement

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Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 3 Type of securities ( tick one ) 4 ( √ Securities described in Part 1 a ) ( All other securities b )

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 3 If the[+] securities are[+] equity securities, the names of the 20 largest holders 5 of the additional[+] securities, and the number and percentage of additional +securities held by those holders

• 3 If the[+] securities are[+] equity securities, a distribution schedule of the 6 additional[+] securities setting out the number of holders in the categories 1 - 1,000

• 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 3 A copy of any trust deed for the additional[+] securities 7

Entities that have ticked box 34(b)

• 3 Number of securities for which 8 +quotation is sought 3 Class of[+] securities for which 9 quotation is sought

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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

Appendix 3B New issue announcement

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4 Do the[+] securities rank equally in 0 all respects from the date of allotment with an existing[+] class of quoted[+] securities? If the additional securities do not rank equally, please state:

• the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 4 Reason for request for quotation 1 now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) Number +Class 4 Number and[+] class of all 2 +securities quoted on ASX ( including the securities in clause 38)

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• • An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted.

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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

Appendix 3B New issue announcement

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• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: Print name: Chris Grundy CFO & Company Secretary

Date: ..13 August 2007..

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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