PAINCHEK LTD — Capital/Financing Update 2019

Dec 2, 2019

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3 December 2019

PainChek Limited ( ASX: PCK ) ABN 21 146 035 127 Suite 401, 35 Lime Street, Sydney, NSW, 2000 Phone +61 8 9388 8290 info@painchek.com

PainChek UK confirms first orders, expands presence in the UK market

• First 1,000 PainChek annual bed license order received from PCS UK

• First direct sale made by PainChek UK to dementia specific aged care centre

• Outstanding rated aged care facility now promoting PainChek® to potential new clients

PainChek® is pleased to confirm the receipt of the first orders and expanding partnerships to accelerate penetration within the UK market.

Following a number of successful trials within Aged Care, Person Centred Software UK (PCS UK) have placed an order for 1,000 PainChek annual bed licenses as an initial supply for their UK aged care and nursing home clients.

“We have more than 55,000 resident beds under PCS licenses in the UK across more than 1500 aged care homes. We have received very positive feedback on the PainChek® system from our trial sites and our sales teams are actively marketing the combined PCS and PainChek package to our existing and new client base. The benefit is better care for residents combined with greater operating efficiencies for the home – which gives carers more time to provide care” commented Jonathan Papworth, Director and Founder of PCS UK.

In addition, PainChek UK has made its first direct sale to a 30-bed aged care client in the UK. The sale was completed on the same day of the visit to the aged care facility. “I received a call from a care home operator I had previously met a few years ago. He had seen that I had joined PainChek and had been on our website. I was summoned to visit him; such was his excitement. The client who owns a dementia specific aged care home, had a full understanding of the need and the clinical benefit, and placed the order immediately. Furthermore, the engagement is so high with his staff that they wish to showcase the solution in use” said Pete Shergill, PainChek UK’s Business Development Director.

The UK has 540,000 residential aged care beds across 18,000 homes. 82% of these homes are privately owned, 15% run by voluntary organisations and only 3% by local Councils. Around 40% of residential aged care is self-funded, 49% receive Council funding and 10% is NHS funded.

Much like the rest of the globe the management of dementia poses a significant challenge for all governments. The prevalence of dementia is set to rise from 885,000 people in 2019 to 1,590,000 in 2040 – a rise of 80%. Even more startling is the rise in cost over the same period from £35bn to £94bn (+170%).

The collaboration with PCS provides an immediate access to 1500 homes but more crucially, a significantly higher proportion of those that have adopted care planning technology. The software integration between PainChek and PCS provides a clear and mutual benefit to both organisations

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across both continents. The PCS teams have engaged well with the PainChek® solution which further enhances the excellent PCS proposition.

PainChek UK has also teamed up a with an Outstanding Care Quality Commission (CQC) rated dementia focussed care home based near Manchester as part of our direct selling to aged care programme. The CQC rating is the highest rating a home can achieve as an aged care facility in the UK. They are excited to have adopted the PainChek technology as part of their overall offering, providing a clear endorsement to the market. The home has agreed to host other aged care visitors on a monthly basis to demonstrate the benefits the PainChek pain assessment tool brings to the adult social care market. This is part of the PainChek UK’s strategy to drive direct sales to the large number of UK aged care homes.

*London School of Economics: Care Policy and Evaluation Centre 2019

(1) The PainChek monthly Average Revenue per Licensed Bed (ARLB) across the RAC customers based on the agreements signed to date is in the range of A$4 per month, and the Average Revenue per Active Resident (ARAR) is in the range of A$8 per month based on actual resident usage. See ASX release dated 28 November 2019.

This release is authorised by Philip Daffas, Managing Director & CEO.

For further information contact: Ian Hobson Company Secretary Tel: +61 8 9388 8290

Philip Daffas Managing Director Tel: +61 406 537 235

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About PainChek®

PainChek® Ltd is an Australian based company that develops pain assessment technologies.

PainChek® is a smart-phone based medical device using artificial intelligence to assess and score pain levels in real time and update medical records in the cloud. PainChek® records a short video of the person’s face and analyses the images that indicate pain and records them.

Next, the caregiver uses PainChek® to record their observations of other pain related behaviours that complete the assessment. Finally, PainChek® calculates an overall pain score and stores the result allowing the caregiver to monitor the effect of medication and treatment over time.

PainChek® is being rolled out globally in two phases: first, PainChek® for adults who are unable to effectively verbalise their pain such as people with dementia, and second, PainChek® for Children who have not yet learnt to speak.

The PainChek® Shared Care Program is a PainChek® licensing model which enables a professional carer to share their resident or patient data securely with other healthcare professionals or designated homebased family carers for ongoing pain assessments or clinical data review.

To find out more, visit www.painchek.com

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PainChek[®] artificial intelligence assesses facial micro-expressions that are indicative of the presence of pain.

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PainChek[®] domains of pain assessment that calculates pain severity score.

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