BRR - Straight from the source

PRESENTATION BY MARK MORRISSON, CHIEF EXECUTIVE OFFICER OF UNIVERSAL BIOSENSORS, INC. (UBI)

“UBI - Quarterly Investor Update”

http://www.brr.com.au/event/49527

WEDNESDAY, AUGUST 20, 2008, 10:00 AM.

            UBI      Welcome to the Universal Biosensors Quarterly Investor Update. My name is Mark Morrisson and I am the CEO of Universal Biosensors. In this

10                    presentation, I would like to describe the key activities of the Company for the quarter of April 2008 to June 2008.

                        Slide 2 summarizes the highlights of the quarter. In a highlight announced to the market, the Company negotiated a new services funding stream through

15                    LifeScan for work associated with production scale-up activities of the blood glucose sensor for the diabetic market.

                        In other production-related news, we ordered five additional production machines which form the core of a second production line. These machines

20                    duplicate the core of our existing production suite and like that suite will be used in the manufacture of blood glucose sensors.

                        Head count rose as we integrated a number of long-term LifeScan secondments into our teams. During secondment, LifeScan personnel are

25                    based in Rowville but remain on LifeScan's payroll. In addition, new hires were added to our production, quality control and research teams.

                        Our management system was audited during our annual inspection by TUV SUD, our notified body. We passed this audit.

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                        Slide 3 summarizes current progress in operations. Across the quarter, activities associated with production development and scale up accelerated and we are extremely pleased by the significant and increasing LifeScan engagement with the Company. As noted in the highlights, we are

35                    strategically embedding key LifeScan talent into a number of Universal Biosensors work teams. The cost of the secondment is paid for by LifeScan even though these workers are based in Rowville.

                        We were also pleased to announce an additional agreement for the provision

40                    of services to LifeScan which we are starting to receive revenue. These new contributions in cash and kind are additional to those described in the Master Services and Supply Agreement concluded late last year.

                        Across the quarter, Universal Biosensors ordered five additional pieces of

45                    new manufacturing equipment. These pieces duplicate the core manufacturing pieces already in place on the Universal Biosensors factory floor and are intended for use in manufacturing blood glucose sensors. The first two of these five new pieces are slated for delivery later this year.

                        Our current regulatory and quality activities are summarized in Slide 4. Our notified body, TUV SUD, conducted the first audit in our new building of our quality management system which we passed successfully.

5                      The preparation of regulatory dossiers continues. This is an important part of the blood glucose product program since successful review and approval of submissions triggers milestone payments for Universal Biosensors. Under the Master Services and Supply Agreement, there are three such milestone payments, one associated with each of three territories.

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                        In the meantime, we continue to validate all aspects of the development and manufacturing process.

                        Slide 5 shows that currently we just have under 157 million shares on issue.

15                    The number of issued and outstanding options is approximately $6.2 million. Universal Biosensors financial year corresponds with the calendar year.

                        Slide 6 shows revenue for services from the new LifeScan funding stream of just over $1.2 million and income from research and development during the

20                    half year of just over $519,000. Operating expenses for the half year were approximately A$6.6 million and show an increase over the corresponding period last year, reflecting increased path to market activity subsequent to the signing of the Master Services and Supply Agreement and an acceleration of our R&D efforts as we apply some of the funds of our December 2007 capital

25                    raising. Nonetheless, our net loss corresponds roughly to that of the same period last year.

                        As shown in Slide 7, we have approximately A$35.6 million held in cash and cash equivalents with over $19 million worth of plant and equipment. With

30                    about $4.4 million worth of liabilities, this equates to approximately $56 million worth of shareholders equity.

                        Further details are given in Slide 8.

35                    Finally, with Slide 9, I would like to leave you all with the key messages of last quarter. One is of the significant and increased support of our partner for the blood glucose product. We have always been pleased with the solid support shown by our partner towards the potential of our technology. Now, with the product in the pre-launch phase, the relationship continues to strengthen as

40                    evidenced by new commitments beyond those described in last year's Master Services and Supply Agreement.

                        Finally, and not least, we continue to make good progress with our other development projects. I look forward to delivering more news on our progress

45                    next quarter. Thank you for listening.

PRESENTATION CONCLUDED

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