USCOM LIMITED — Capital/Financing Update 2010

Dec 1, 2010

Uscom Limited

ABN 35 091 028 090 Suite 1, Level 7, 10 Loftus Street Sydney NSW 2000 Australia T +612 9247 4144 F +612 9247 8157 www.uscom.com.au

M A R K E T A N N O U N C E M E N T

USCOM APPOINTS KIELY & ANNOUNCES PROPOSED $3m PRIVATE PLACEMENT

Thursday 2nd of December, 2010: Uscom (ASX code: UCM). Uscom Limited today announced the appointment of Mr Phil Kiely as Executive Chairman, effective on finalising a capital raising. Mr Kiely will replace Mr Rob Phillips who will remain on the Board as Director - Medical Science.

Uscom is undertaking a private placement of up to 10 million shares at 30 cents followed by an SPP to all shareholders. The placement total of $3 million dollars will be split into two tranches. Ordinary shares related to the first tranche of $1,881,180 (6,270,600 shares) will be issued on completion and any balance over the first tranche will be subject to shareholder approval.

A shareholder meeting will be held early next year to approve the second tranche of the private placement.

Mr Kiely is a former Managing Director of Oracle Corporation for Australia and New Zealand. Based on his 25 years experience in the information technology arena, Mr Kiely sees a great opportunity to boost the sales of Uscom through revamping its distribution network and injecting a new sales culture into the business.

"The biotech sector has a lot to learn from the experiences of the ICT sector in the rollout of products" says Mr Kiely. "The groundbreaking technology of Uscom is well positioned to change the game in intensive patient care, particularly in paediatrics and emergency. Uscom is at the cusp of becoming a leading medical devices company with a remarkable life saving device".

Mr Phillips said he looked forward to focusing on his areas of strength, concentrating mainly on clinical science, validation and R&D: "It is timely to welcome someone of Phil's background and skills to Uscom. His experience in strategy, management, distribution and business development is ideal to take Uscom to another level."

Mr Kiely's nominated entity will be granted 4 million, 5 year options in equal tranches with exercise prices at 75 cents, $1, $2 and $3. Mr Phillips said this incentive package had been structured to reward exceptional performance which Mr Kiely is confident he can deliver. The options will be subject to shareholder approval at the shareholder meeting to be held early next year.

In addition to his board role, Mr Kiely will be contracted with Uscom to drive the new sales and marketing programmes and to hire a new CEO.

Uscom today signed its first new distributor agreement in the North American market, Medical Dynamics, and the company is poised to sign three additional distributors in the next few weeks. These distributors will give Uscom coverage of up to 75% of the U.S. market.

Uscom is also reviewing the performance of all distribution partners in Asia and Europe to achieve greater sales. Its current exclusive worldwide distributorship with Spacelabs will expire on December 12.

Uscom Limited

ABN 35 091 028 090 Suite 1, Level 7, 10 Loftus Street Sydney NSW 2000 Australia T +612 9247 4144 F +612 9247 8157 www.uscom.com.au

M A R K E T A N N O U N C E M E N T

About Uscom

Uscom Limited is an Australian medical device company which was first listed on the Australian Stock Exchange in December 2003. Uscom has developed a Non Invasive Cardiac Output Monitor. The USCOM is a simple, cost-effective and non-invasive device that measures heart function, detects irregularities and guides treatment. The USCOM device has major applications in Paediatrics, Emergency Medicine, Intensive Care Units and Anesthesia, and is a tool of choice for management of adult and paediatric sepsis, and for the guidance of all fluid administration. USCOM has global regulatory approval and the technology is currently marketed in North America, South America, Europe, the Middle East, India, Australia & New Zealand. China and SE Asia.

Uscom Contacts Rob Phillips Chief Executive Officer rob@uscom.com.au

Daniel Fah Company Secretary daniel.fah@uscom.com.au