INTERVIEW WITH GREG BROWN MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, IMPEDIMED LIMITED (IPD)

“Strong Quarterly Sales Revenue Achieved”

http://www.brr.com.au/event/48830

FRIDAY, AUGUST O1, 20081:00 PM

            BRR    Welcome to Boardroomradio. Terence speaking with Mr. Greg Brown, the managing director and chief executive officer of Impedimed. Greg, thanks for

10                    joining us today

                        IPD      Hi, good morning.

                        BRR    You've released the latest quarterly cash flow and activities report. Let's start by getting you to touch on the quarterly sales revenue and how you

15                    view these results in terms of the company's expectations.

                        IPD      Yeah, thanks, James. (inaudible) (00:00:00:28) was happy with the quarterly revenue we posted, $ 873,000 for the quarter. These are sales revenues, they're unaudited, which brought us in for the year about 2.35 within our expected sales revenue number. At present, we compare the fourth

20                    quarter of this fiscal year with last year. It represents about a half a million increase on the quarter, the final quarter of 2007 and quarter and quarter growth was also strong so we were very happy with that especially in lot of the fact that, you know, our sales will really be driven by the FDA clearance on the U400. This is our key product to medical providers in the US, and at

25                    present moment, we haven't received our FDA clearance, hence, we're limited, until that clearance comes through, to fully launch that into the US market. We see that as having a big impact on our sales growth going forward.

30                    BRR    Greg, in the quarterly you've also drawn attention to some of the journal attention that the technology has been receiving from Impedimed both online and print coverage. Can you please tell us about some of the commentary that's been made on your technology?

                        IPD      Yeah, there's been a number of publications mainly in the area of

35                    breast cancer and the use of the bioimpedance spectroscopy  for the early detection of lymphoedema. There is also the...of course, there was the major fabrication in cancer in May which was, you know, showing early detection with early intervention prevented the disorder from progressing to an irreversible form. Beyond that we've also had a lymphogeatical which was

40                    published that was on 300 breast cancer patients here in Australia that showed that bioimpedance spectroscopy was a very sensitive and specific device. We also had a general clinical oncology publication that came out in July in the US, and again, here...really calling for the fact that the use of bioimpedance spectroscopy would help identify a lot of sub-clinical (inaudible)

45                    (00:92:30) that exist with breast cancer patients. So it had, you know, a general clinical oncology, cancer oncology, all very well recognized journals adding to the already 10 to 15 years of curative science that we have on the technology showing that, you know, an early detection diagnostic, that we have strong scientific support for its clinical performance in breast cancer.

                        BRR    Greg, you've also indicated in the release that some of the face-to-face contact you've had in New York have been a strong response in terms of generating sales and sales leads. How do you see this market for Impedimed

5                      going forward?

                        IPD      Well, what was noticed from the American Society of Breast Surgeons conference in New York in early May/late April...you know, it was very well received by the surgeons. We generated a number of leads and we've been able to follow up on a number of those leads...yeah, clearly there is a strong

10                    acceptance from surgeons that we meet to look at this preemptive care model versus the reactive care model because when we look at where we diagnose lymphoedema today , you know, its bordering on an irreversible condition. So a lot of the surgeons are very positive to this preemptive care approach so they're on the fund for preventing this from ever becoming a problem longer

15                    term. So what we're needing to do right now....we need to get our FDA clearance through on the device to be able to really roll out it across the US. At present, the (inaudible) (00:03:59) what would lead the device to zone in and target it for home care is the only FDA-cleared device that we have. We're pretty getting to that now and we hope to have our clearance on the

20                    U400 and then we'll be in a very strong position then to follow up with these surgeons and (inaudible) (00:04:14) that, you know, we're looking at putting in a sales team of around ten thousand.....representatives into the US market...that with some continuing education programs and co-marketing with some of the activist groups. We'll just do a major launch program around that

25                    U400 announcement and that'll be a significant announcement for us over the next three to six months... will be the launch of that U400 and being able to make close a number of these surgeons to be able to introduce this preemptive care approach. 

30                    BRR    Greg, from a logistical point of view there was quite a significant milestone achieved with the opening of your San Diego-based US facility. Could you give us an indication what the opening was like, the significance of it for Impedimed.

                        IPD      The initial bio was held in San Diego and, you know we've decided to

35                    have al of our US-based operations based from San Diego. It represent the largest medical device market in the world, we need to be able to deal on that time zone and to be able to meet requirements of a medical device market in the US which is fast turnaround of device service, strong technical support, making sure that we're meeting our regular regulatory and quality

40                    requirements. So today we've made a commitment to San Diego. We had the official opening around bio this year so we were fortunate to have the Honorable...the Premier of Queensland and (inaudible) (00:05:42) open the facility. We had a lot of press around that and we're very happy that the premier was able to support us in opening the office and from that, we got a

45                    lot of local media. There's also been a lot of media across the US, everything from the New York Times, the Allied Times, Forbes, all doing articles on the company and it was all based around that cancer publication and the relevance of our device being a non-FDA cleared device but early detection of lymphoedema. We also had a number of television segments that were done, out of Stanford and one that was done in Springfield in Massachussetts,which was very encouraging because it really did spotlight our technology and what it delivers to breast cancer patients and helping to prevent some of the morbidity issues related to breast cancer treatment.

5

                        BRR    Greg, that sounds like it was obviously a very important step and a good event as well. As much as...finish up by touching on your current cash position...the company's raising capital recently, could you talk to our listeners, shareholders and potential investors your current cash position and

10                    how you intend to use these funds in quarter ahead.

                        IPD      Current cash position as of the end of June 2008 was roundabout $8.5 million. We felt that, you know, we would like to really invest into a major launch around the U400 FDA 1 clearance once we've received it. Today, again, we felt that it was worthwhile raising more capital to ...you know,

15                    putting in a sales team of ten people to put  in the events to continuing education, public relations and working with the activist groups. I am also supporting as many placements as possible for our Category 1 couch mission this year. So to that in July, we were able to raise $4.2 million and it was at a premium to   our stock price which is turning 70 to 71 cents at the moment

20                    and we're also (inaudible) (00:07:48) to 75 cents and we were successful in raising $4.2 million. So that will bring our cash position up to around $12/12.5 million and that's more than enough to fund the business plan for the launch into the US market and to assist in an adoption of the technology to support our Category 1 couch mission.

INTERVIEW CONCLUDED

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