UNIVERSAL BIOSENSORS INC. — Share Issue/Capital Change 2011

Sep 25, 2011

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

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

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

UNIVERSAL BIOSENSORS, INC.

ABN

51 121 559 993

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued	1. Unquoted employee options over Universal Biosensors, Inc. shares of common stock. 2. Shares of common stock traded in the form of CHESS Depositary Interests (CDI’s)

2 Number of +securities 1. 86,000 employee options issued or to be issued (if 2. 1,213 CDI’s known) or maximum number which may be issued

• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 1

Appendix 3B New issue announcement

3 Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)

1. Subject to terms and conditions of the Universal Biosensors, Inc. employee option plan. Exercise price: A $1.00 The exercise price has been calculated as the closing price of Universal Biosensor’s common stock on Australian Securities Exchange on the day on which the employee options were granted. Grant date: 22 September 2011 Expiry date: 21 September 2018 Vesting of employee options: 28,666 vesting on 31 December 2012; 28,667 vesting on 31 December 2013; 28,667 vesting on 31 December 2014. 2. Same terms as existing shares of common stock.

• See chapter 19 for defined terms.

Appendix 3B Page 2

24/10/2005

Appendix 3B New issue announcement

4 Do the[+] securities rank equally in 1. No. Unquoted employee options to be all respects from the date of issued. allotment with an existing[+] class of quoted[+] securities? Shares of common stock issued on exercise of the employee options will If the additional securities do not rank equally with existing shares of rank equally, please state: common stock. • the date from which they do • the extent to which they participate for the next To participate in a dividend, the dividend, (in the case of a trust, ordinary shares underlying the distribution) or interest employee options would need to be payment issued prior to the record date for the • the extent to which they do not dividend. rank equally, other than in relation to the next dividend, 2. Yes distribution or interest payment

5 Issue price or consideration 1. Nil 2. Nil 6 Purpose of the issue 1. Issue of 86,000 employee options to 5 (If issued as consideration for the new employees acquisition of assets, clearly 2. Release of 1,213 restricted shares and identify those assets) conversion into CDI’s pursuant to the Universal Biosensors, Inc. employee share plan

• 7 Dates of entering[+] securities into uncertificated holdings or despatch of certificates

22 September 2011

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)

Number		+Class
158,950,811		CHESS Depositary Interests
Number	+Class
74,350	Shares of common stock (restricted) (Code UBIAC)

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

	1,516,770 337,107 115,992 623,000 590,000 824,000 236,667 81,333 66,667 1,644,334 1,610,000 50,000 505,500 355,000 2,300,000	Employee options expiring 30 December 2013 (Code: UBIAS) Employee options expiring 31 December 2015 (Code: UBIAQ) Employee options expiring 18 September 2016 (Code: UBIAU) Employee options expiring 22 March 2017 (Code: UBIAY) Employee options expiring 18 September 2017 (Code: UBIAI) Employee options expiring 16 March 2018 (Code: UBIAW) Employee options expiring 19 August 2018 (code: UBIAA) Employee options expiring 16 February 2019 (Code: UBIAK) Employee options expiring 14 May 2019 (Code: UBIAM) Employee options expiring 28 June 2019 (Code: UBIAZ) Employee options expiring 9 November 2019 (Code: UBIAB) Employee options expiring 10 February 2017 (Code: UBIAD) Employee options expiring on 10 November 2017 (Code: UBIAO) Employee options expiring on 9 March 2018 (Code: UBIAE) Employee options expiring on 23 February 2018 (Code: UBIAF)

• See chapter 19 for defined terms.

Appendix 3B Page 4

1/1/2003

Appendix 3B New issue announcement

10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	86,000	Employee options expiring on 21 September 2018
	Not applicable.

Part 2 - Bonus issue or pro rata issue

11	Is security holder approval
	required?
12	Is the issue renounceable or non‐
	renounceable?
13	Ratio in which the+securities
	will be offered
14	+Class of+securities to which the
	offer relates
15	+Record date to determine
	entitlements
16	Will holdings on different
	registers (or subregisters) be
	aggregated for calculating
	entitlements?
17	Policy for deciding entitlements
	in relation to fractions
18	Names of countries in which the
	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.
19	Closing date for receipt of
	acceptances or renunciations
20	Names of any underwriters
21	Amount of any underwriting fee
	or commission
22	Names of any brokers to the
	issue

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

23	Fee or commission payable to
	the broker to the issue
24	Amount of any handling fee
	payable to brokers who lodge
	acceptances or renunciations on
	behalf of+security holders
25	If the issue is contingent on
	+security holders’ approval, the
	date of the meeting
26	Date entitlement and acceptance
	form and prospectus or Product
	Disclosure Statement will be sent
	to persons entitled
27	If the entity has issued options,
	and the terms entitle option
	holders to participate on
	exercise, the date on which
	notices will be sent to option
	holders
28	Date rights trading will begin (if
	applicable)
29	Date rights trading will end (if
	applicable)
30	How do+security holders sell
	their entitlements_in full_through
	a broker?
31	How do+security holders sell
	part of their entitlements
	through a broker and accept for
	the balance?
32	How do+security holders dispose
	of their entitlements (except by
	sale through a broker)?
33	+Despatch date

Part 3 - Quotation of securities

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

• 34 Type of securities ( tick one )

• See chapter 19 for defined terms.

Appendix 3B Page 6

1/1/2003

Appendix 3B New issue announcement

• (a) � Securities described in Part 1

• (b) All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

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

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

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the 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

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

Entities that have ticked box 34(b)

• 38 Number of securities for which +quotation is sought

• 39 Class of +securities for which quotation is sought

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

40 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

41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security)

42 Number and +class of all +securities quoted on ASX ( including the securities in clause 38)

Number +Class

• See chapter 19 for defined terms.

Appendix 3B Page 8

1/1/2003

Appendix 3B New issue announcement

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.

• 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: (Company secretary)

Date: 26 September 2011

Print name: Cameron Billingsley

== == == == ==

• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 9