change of directors interest notice

Hey guys,

Let's focus on the stock today and not 'play the man'.

Maybe there's a new years resolution in it for you.


Announcement out today:

Evan Cross change of Direct and Indirect shares.

Acquired: Class D performance shares converted to 1,150,000 ordinary shares on a one for two basis.

Disposed: Unquoted options expired 30th June 2007, expiry of Class F performance shares, 2,927,484 Ordinary shares, 107,500 quoted options exercisable at $1.10 expiring 30th June, 2008....value consideration : Nil



No. of securities held after change: 11,750,000 ord shares (held by Sante Holdings Pty. Ltd.).

Nature of Change: Conversion of Class D performance shares ass approved by shareholders at an EGM held on 3rd Sept 2007 - off market transfers.

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Now we just wait for the announcement regarding the transfer of monies from K-One...


(from Nov 13, 2007)

AOS Signs Letter Of Intent to Spin Off Ophthalmic Portfolio
Key Points:

* Ophthalmic assets valued at AUD$18 million

* AOS to receive AUD$5.0 million cash

* AOS and its shareholders to receive AUD$13.0 million of shares in a new listed company

* Provides development funding for the Omnifocal™ lens

* Significant Value Uplift from Existing Market Capitalisation of AOS. The board of Advanced Ocular Systems Limited (AOS) is pleased to announce it has signed a Letter of Intent (LOI) with K-One Industries Pte Ltd, a Singapore based company, to spin off the remaining ophthalmic assets into a new company to be listed on the Singapore Stock Exchange.

Key terms of the LOI include the following:

* Subject to AOS shareholder approval, the Ophthalmic assets of the company comprising the TA license, Tetraflex license and Omnifocal development Intra Ocular Lens (IOL) will be sold to a new company funded by Singapore based
investors for a total sale price of AUD$18.0 million, comprising AUD$5.0 million in cash and AUD$13.0 million in shares in the Purchaser company.

* The Purchaser will be required to pay a AUD$2.0 million cash deposit to AOS before 31 December 2007, with the balance of AUD$3.0 million cash due on settlement and listing of the Purchaser, not later than 31 May 2008. In the event settlement does not proceed, AUD$1.0 million of the deposit is refundable to the Purchaser and AUD$1.0 million will be retained by AOS and converted into AOS shares (subject to shareholder approval) valued at the lower of 5 cents per share or the weighted average price of AOS shares in the ten days prior to 31 May 2008.

* On settlement, the Purchaser will issue AOS with AUD$13.0 million of shares in the Purchaser valued at the Purchaser’s IPO share price. AOS intends, subject Advanced Ocular Systems Ltd. Page 2 of 2 to shareholder and regulatory approvals to distribute the majority of these shares
on a pro rata basis to AOS shareholders. The precise amount of the distribution will be determined closer to the date of settlement and listing of the Purchaser.

* The Purchaser intends to raise sufficient new capital to undertake full exploitation of the Omnifocal™ Intra Ocular Lens from its Singapore base.

* AOS will retain an interest in the further commercialization of the ophthalmic assets by virtue of holding directly and via its shareholders a significant interest in the new listed company, expected to be domiciled on the Singapore Stock Exchange.

* AOS will be offered board representation in the Purchaser to oversee the development of the Omnifocal IOL.

* AOS retains the right to receive the remaining milestone payment on its TA asset (US$1.0 million), subject to FDA approval of a saleable product by Alcon.

* The transaction is subject to completion of satisfactory due diligence by the Purchaser within 28 days from signing and completion of a binding purchase agreement acceptable to each party.

Shareholders will be aware that the Company has been working towards such a spin off transaction for some time. The Board believes the potential financial outcome for AOS
is very positive, particularly weighed against the current market capitalization of the Company. If successful, AOS will have approximately AUD$4.0 million of cash (after
assuming full repayment of convertible notes) and up to AUD$14 million of investments in Ophthalmic companies (before any distribution to AOS shareholders), leaving the
Company in a much improved financial position. In addition, the Purchaser will have far greater financial resources to exploit the commercialisation of the Omnifocal™ IOL than
AOS could have contributed to the project. This is expected to provide greater long term value for all AOS shareholders as the value of that asset is enhanced.

We look forward to sharing further updates with shareholders as the transaction progresses.

Yours truly,
Eva Skira
Chairman
Advanced Ocular Systems Limited

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