MEDIA RELEASE 8 September 2011

Compumedics gets $900k Boost to China Business

Compumedics China deal sets new record and reinforces upcoming investor/trade mission Record sales of USD4.4 million for FY2011 compared to USD3.2 million in FY2011 or a 37.5% increase Compumedics German brain ultrasonography division, DWL, continues to expand its Chinese market presence booking sales orders equal to 40% of total FY2011 sales in the first two months of FY2012 Compumedics Limited (ASX: CMP) is pleased to announce the Company's Germany-based brain blood-flow ultrasonography division, Compumedics Germany GmbH (DWL), has booked orders of approximately 0.6 million (AUD0.9 million) from Beijing Beike Digital Medical Technology (Beike) for the purchase of DWL products in the first two months of the new financial year. This milestone for Compumedics Germany continues to underpin the Compumedics Groups growing presence in China and is further evidence the Companys growth strategy of focusing on this lucrative market is well on track. Beike, a Chinese neurology company with over 20 years experience, and Compumedics Germany have collaborated for over 10 years to develop the Chinese brain blood-flow ultrasonography market. Simultaneously, Compumedics has been building the sleep diagnostic market in North China for 10 years with its distributor for these products in the region, Bestmed. As a result of these successful and highly developed partnerships Compumedics has achieved the following outcomes over the past 5 years: Since FY2007 sales to China have almost tripled from USD1.8m to USD4.4m in FY2011 Since FY2007 sales of Compumedics sleep diagnostic systems have grown 400% from USD0.25m to USD1.0m in FY2011, providing an enormous opportunity for future growth given Chinas potential market size and its early phase of development Across the Asia region, including India, Compumedics has grown its sales from the region by about 11% pa from USD4.5m in FY2007 to USD7.6m in FY2011 Compumedics new neuro-diagnostic range of products, including the Neuvo long-term monitoring system, remains an untapped commercial opportunity in the region with initial sales forecast for FY2012. These new orders build on the significant momentum currently underway for the Compumedics Groups expansion into China following the Companys announcement to the market in June of a USD 800k (AUD760k) order for Compumedics sleep and neuro diagnostic products into North China and the announcement to market last December of a 1 million (AUD1.25 million) order from Beike for DWL equipment at that time. China represents a unique emerging market opportunity for Compumedics complete range of diagnostic and monitoring systems, particularly given the close proximity and strong trade relations with Australia, coupled with Compumedics time-earned reputation and establishment of premier reference centers throughout China. As China rapidly builds and expands its basic health

infrastructure, mainly due to a continuously growing middle class, the focus will inevitably turn to new areas of health management, including sleep and neural disorders and brain blood-flow ultrasonography. This will provide a measurable upside for companies as well positioned and established as Compumedics in this space. Compumedics Groups $900k contract comes at an opportune time as Chairman and CEO, Dr David Burton, will be travelling to China to head-up investment talks with distinguished medical device investors and industrialists. In commenting on the boost to Compumedics China business, Dr. David Burton, Chairman and CEO, said: "These significant sales orders achieved so early in the new financial year further validate Compumedics superior product offering, highlighting another important milestone for our Company. They reinforce our commitment to developing Compumedics potential for exponential growth in the Asian markets, particularly in China. A recent study by the Shanghai Institution of Traditional Chinese Medicine for Sleep Disorders, published in the China Daily, estimates that up to 38% of the population of Shanghai suffers from some form of sleep disorder. In a city of 19 million people, this represents approximately 7 million potential sleep disorder patients who would greatly benefit from Compumedics products. "Market research (Global Data 2010) confirms that Sleep Apnea Diagnostic Systems have been reported as the fastest growing category within the Chinese anaesthesia and respiratory devices market, with growth rates of 15.7 % between 2002 and 2009 and a forecast of 14.1% between 2009 and 2016. Importantly, in partnership with an extraordinary long-term network of existing distributors, Compumedics has established itself over the past 2 decades as the leading supplier of premier sleep and also neurology systems amongst the finest Chinese hospitals, universities and clinics, alike. Coupled with Compumedics Australian headquarters ideal geographical positioning and global brand recognition built up over 25 years, we believe it is imperative that we investigate the potential to further strengthen our Chinese investment and trade prospects. The prospect of Compumedics further combining the formidable Chinese investment, manufacturing and engineering resources with Compumedics global market sleep and neurology technological and innovative leadership can provide a formidable expanded business opportunity and will be vigorously pursued. Dr. Burton added.

For further information please contact: Rod North, Managing Director Bourse Communications Pty Ltd T: (03) 9510 8309 M: 0408 670 706 E: rod@boursecommunications.com.au

About Compumedics
Compumedics Limited was founded in 1987 by current Chairman/CEO Dr. David Burton and today is a global leader in the design and manufacture of diagnostic technologies for sleep disorders, neurophysiology and cardiology. In 1987 Compumedics established Asia Pacifics first fully computerized sleep laboratory. Compumedics holds 80% share of the Australian sleepdiagnostic market, and has a major and rapidly growing presence in the US, European and Asian marketplaces for its sleep, neurological and Doppler blood-flow diagnostic monitoring devices. In 1995 the company was selected to supply equipment to the US Sleep Heart Health Study, the worlds largest sleep study of its kind, with over 8,000 participants scheduled by 2008. With headquarters in Melbourne, Australia and offices in the United States, and Europe its products are distributed in over 50 countries. In 1998 Compumedics was awarded the overall Australian Exporter of the Year. In 2000 Compumedics was listed on the Australian Stock Exchange. In 2002, Compumedics acquired US-based Neuroscan - the world's leading supplier of instruments for brain research. In the US - the world's largest medical device market - Neuroscan holds around 90% of the market for brain-research products. In 2003 Compumedics was awarded the Frost & Sullivan Award for Market Expansion Strategy. In 2004, Compumedics acquired Germany-based DWL Elektronishe GmbH, enabling Compumedics to expand its global operations into the neurovascular and cardio-vascular diagnostic fields. In 2006, Compumedics was awarded the Frost and Sullivan Technology Leadership award for its innovative Somt recorder product. In 2007, Compumedics and its Chairman were inducted into the Victorian Manufacturing Hall of Fame. In 2008 the DWL division received a top 100 German Innovation award. With 20,000 systems installed globally across the finest hospital, universities and clinics Compumedics sales have grown more than 4-fold from $9 million (1999) to $39 million (2008). In 2009 Compumedics was awarded a design award for its GRAEL PSG/EEG premium laboratory-based product. In 2010 Compumedics was recognized by the Australian Innovation Government and Industry body as one of Australia's Top 100 Health Innovators through its' world leading devices for sleep diagnostics. For further background please visit: www.compumedics.com