ZICOM GROUP LIMITED — Capital/Financing Update 2013

Jul 7, 2013

Zicom Gr Limited ABN 62 009 816 871 oup

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38 Goodman Place, Murarrie, Queensland 4172 • Tel: (07) 3908 6088 • Fax: (07) 3390 6898

08 July 2013

Market Announcement Office Australian Securities Exchange Level 6, 20 Bridge Street SYDNEY NSW 2000

Dear Sir,

PROFIT WARNING 2013

The Group wishes to advise that its consolidated net profits for the financial year ended 30 June 2013, are expected to fall below that of the previous year in the range of 14-20% to hit between S$6.2m to S$6.7m. Consolidated revenue is expected to be S$122m as compared with S$130m in the previous year. These figures are subject to final audit.

This is contrary to our earlier advice given that the profits for the financial year just ended are expected to exceed that of the previous year.

The shortfall to our earlier advice can be explained as follows:-

a) Unrealised Mark-To-Market Exchange Losses S$2.1m

• The Group normally hedges its US$ forward to protect its profit margin on sales priced in US$. The sudden sharp strengthening of the US$ towards the end of the financial year, following the USA Federal Reserve’s warning of tapering their monthly bond purchases, has resulted in a mark-to-market unrealised loss in foreign exchange of S$2.1m in hedging instruments taken against our S$ and A$.

b) Delayed Shipments – Profit shortfall S$2.0m

• Orders in hand worth S$15m ready to be shipped by the year end were held back caused by customer’s delay. Payment mode has been fully secured. The delay in shipment causes a delayed recognition of profit of S$2.0m profits in the year 2013 which will roll over into 2014.

c) New Technologies – Extended Gestation Losses S$2.0m

• (i) Thermal-Bonders

• We expected to have delivered a few units by the year just ended. This has been delayed to the next 2 quarters. The delay has been caused by our decision to further enhance our design to position ourselves well ahead of the curve when the product makes its debut. We are pleased to advise that this has been achieved. At this stage a substantial order exceeding US$10m has been agreed in principle with a customer and contracts are expected to be finalised within this month.

• ii) Medical Technologies

• a) Drug Discovery Technology Our DropArray drug discovery technology has been accepted by 6 of the top pharmaceutical companies based in the USA and UK for its uniqueness in carrying out drug discovery employing suspension cells. Existing technologies are unable to achieve the outcome that we can deliver in high end drug development employing suspension cells. We foresee that another 6 months is required for these top users for further validation to ensure that the technology meets their individual targets before they can adopt it into their processes. As a

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result, we remain focused to invest in additional human resources to achieve these and are confident that the adoption of our technology will escalate rapidly in the industry, resulting in exponential sales.

An article from a group of scientists from Genentech Inc and Seoul National University, proving our technology on suspension cells published their findings in the prestigious magazine “Blood” on-line on 19 December 2012. “Blood” is a journal of the American Society of Haematology that focuses only on breakthrough technologies. The journal of Nucleic Acids Research, USA, on 17 June 2013 published the employment of our technology in research on DNA damage and repair, by scientists from Dana Farber Cancer Institute and Department of Dana-Farber - Surgery, Brigham & Women’s Hospital, Boston.

b) Surgical Robots

Our latest commercial version of the surgical robot, that is being patented, has been clinically tested. It was launched in the AUA May 2013 exhibition in San Diego and is ready for commercialisation. We have just received approval from the FDA in America a fortnight ago on our updated version. We expect to secure CE mark from Europe and updated regulatory approvals from Singapore, Australia and Taiwan within this quarter. We have secured an order from a leading German hospital with more than 1000 beds, for our first unit. This will be delivered in this quarter. Negotiations are being finalised to use this center as our center of excellence and point of reference in Europe.

We are also finalising negotiations with a leading USA University Hospital in New York as a center of excellence and point of reference for our robot in USA.

Commercialisation of our new technologies will take off in the financial year 2014.. 1

Yours faithfully Zicom Group Limited

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-------------------------------G L Sim Chairman.

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