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1 Austofix Group Limited Chairman s Address to AGM 18 November 2011 WELCOME Good morning ladies and gentlemen, welcome to the 2011 Austofix Annual General Meeting. My name is Mark Balnaves and I am the chairman of Austofix. Together with Austofix CEO, Mark Szolga, we will be updating you on the events of 2011 and the business challenges and opportunities that lie ahead. There is a quorum of shareholders present and I declare the meeting open. At this point I would like to introduce the Board Tony Ingman Executive Director and Founder of Austofix; Greg Bittar Non-executive Director. I would also like to introduce Alex Porter, our Company Secretary. Our auditors, Grant Thornton, are represented here today by Simon Gray. Our lawyers, Johnson Winter & Slattery, are represented here today by Kerry Morrow. Shortly I will introduce Mark Szolga to present a review of the Group s operations and future outlook. Following on from Mark s presentation we will deal with the formal resolutions and any questions relating to those resolutions IN REVIEW Austofix has continued to invest in bringing products to market, with our key focus being to build sales of our hip replacement products. Mark Szolga will provide further detail in his presentation. THE FUTURE Our goal is to be the leading Australian manufacturer of major joint replacements, a provider of safe and responsible orthopaedic products and a Company which has extensive engagement with Australian surgeons. In 2012 our focus will continue to be on selling our products into the Australian market. CEO S ADDRESS I now hand over to Mark Szolga to provide further information for you. CLOSING In calendar 2011 Austofix hip replacements have been implanted in NSW, WA, Tasmania and South Australia. We need to continue to build our sales capacity and we are focused on significantly increasing our sales.

2 I d like to thank my fellow Board Members for their commitment and support and our management team led by Mark for their dedication and hard work. Finally, I would like to thank all of you, our shareholders, for your continued support. Thank you for your attendance and I declare the meeting closed. I encourage you to stay and partake in refreshments.

3 Orthopaedic solutions for an Ageing Population CEO Presentation November 2011

4 Austofix Foundations in place Australian orthopaedic company design and manufacture implants to fix broken or degenerating bones and joints 3-Stage Growth Strategy to become a significant player in the Australian Orthopaedic Market Stage 1: Grow product range Stage 2: Gain approvals to sell hip replacement products Stage 3: Invest in stock, appoint sales resources and significantly grow sales. Stage 3: Expanding product portfolio in key segments: Knee & Spine - Currently reviewing potential Knee products for the Australian market 2

5 Developments in 2010/2011 Business Development Total hip replacement technology access, regulatory approvals and PBL listing Purchase initial stocking order of total hip replacements Added distributors in UK, Spain, Austria, Czech Republic, Slovakia, Romania, Dubai, Brazil Appointed new sales agent in WA Implanted 50 Hemi/Total Hip replacements since launch hip product, comprising approximately 150 hip products. 3

6 Product Launched in 2010/2011 4

7 International Distributor Network UK / Northern Ireland Spain Czech Republic Slovakia Romania Greece Turkey U.A.E China/Malaysia Ecuador Bolivia Brazil South Africa Argentina 5

8 Stage 2: Hip Market Stage 2 of our strategy will deliver a high quality Total Hip Replacement (THR) system to market Spine * Instrumentation $140 Bone Cements and Substitutes $53 Other $24 $36 Hip $270 Trauma $105 Hips and Trauma account for over 41% of the Australian Orthopaedic market $285 Knee Source: PWC data, to end June 2009 * Spinal market size Company estimate 6

9 Why focus on Hip? Product Strategy: - Pre-IPO: Femoral Nail - Post-IPO: Tectona plate and Partial Hip Replacement - Now: Total Hip Replacement Commercial Strategy: able to sell effectively to hospitals when offering a Total Hip Replacement system Trauma Total Hip Replacement TECTONA PARTIAL / HEMI THR 7

10 Hip now offering THR Hip trauma products Total Hip Replacement System 8

11 Value in THR Trauma PBL Rebate Code Tectona Plate (1) $ 800 AX056 Standard Lag Screw (1) $ 200 AX054 Cortical Screw (1) $ 30 AX051 Locking Plate Screw (2) $ 360 AX053 $ 1,390 Total Hip Replacement PBL Rebate Code Hyperion Uncemented System $ 4,300 AX044 Head $ 800 AX047 Plasma Cup $ 2,700 AX082 Poly liner $ 820 AX072 $ 8,620 6x increase in revenue by selling Total Hip Replacement versus Trauma for Hip fracture 9

12 Summary Company well positioned for healthy revenue build Focus is building inventory, appointment of additional high quality sales staff and growing sales in Australia Expanding portfolio of products in key growth areas 10