SOMNOMED LIMITED — Capital/Financing Update 2016

May 4, 2016

5 May 2016

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ASX LIMITED

SomnoMed Limited ACN 003 255 221 (ASX:SOM) – Results of Institutional Entitlement Offer

SomnoMed is today pleased to announce the successful completion of the Institutional Entitlement Offer, which was oversubscribed. Under the Institutional Entitlement Offer 1,613,983 New Shares will be issued to successful applicants at an issue price of $2.50 per New Share (Offer Price), raising approximately $4.027 million. This represents a total of 38.42% of the total shares available under the Entitlement Offer.

The Institutional Entitlement Offer shortfall, comprised of the entitlements not taken up by eligible institutional shareholders along with the entitlements of ineligible institutional shareholders was placed at the Board’s discretion at the Offer Price to existing institutional shareholders.

As a result of the successful completion of the Institutional Entitlement Offer, SomnoMed shares will recommence normal trading on an ex entitlement basis from the opening of the market on 5 May 2016.

Under the Retail Entitlement Offer, eligible retail shareholders will be able to subscribe for 2 new shares for every 25 existing shares held at 7.00 pm (Sydney time) on 5 May 2016 at the Offer Price. Eligible retail shareholders will receive an Information Booklet including a personalised Entitlement and Acceptance Form which will provide further details of how to participate in the Retail Entitlement Offer.

A copy of the Information Booklet will be lodged today with ASX and is due to be despatched (along with the Entitlement and Acceptance Form) on 10 May 2016, and the Retail Entitlement Offer open on 13 May 2016. The Retail Entitlement Offer closes at 5.00pm (Sydney time) on 27 May 2016.

If no eligible shareholders other than TDM take up their Entitlement (which the Board of SomnoMed considers unlikely), then to the extent that the shortfall shares have not been placed by the Board at its discretion, TDM will be required to subscribe, for the shortfall shares. In these circumstances, the maximum possible increase in voting power of TDM will be 9.8%.

However, as TDM’s obligations will arise post the Entitlement Offer and any placement of the shortfall shares by the Board at its discretion, the Board of SomnoMed considers that the Entitlement Offer will not affect the control of SomnoMed.

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Terry Flitcroft Company Secretary SomnoMed Limited