agm report, page-19

cash in pounds sterling
Another good announcement ... puts some figures to this project, and all in pounds sterling ... then once training centre is up and running maintenance and operation flows to PBI also

• Phase 1 of new surgical skills training centre consultancy services complete for Royal College of Surgeons in England
• Phase 2 expected to commence Q1 2007 • Torbay medical training centre construction expected to commence Q2 2007
• £1.8million of project quotes placed in the UK market

4th December 2006 – Premier Bionics’ wholly owned subsidiary, Medic Vision Pty Ltd (“Medic Vision”) today announced that it has completed Phase 1 of the consultancy project for the Royal College of Surgeons England with respect to the design of their new surgical skills training facility in London. Construction of the Stage 1 area is currently underway. Stage 1 of the project included a skills training laboratory and supporting infrastructure whereas stage 2 focuses on deployment of simulation and virtual reality technologies applied to skills training. Commenting on this aspect of the project Medic Vision CEO, Mr. Ross Horley said, “following the completion of Phase 1 commencement of phase 2 is imminent. We are very excited on the opportunity in Stage 2 to implement leading edge simulation technologies and equipment into this project and assist in the creation of a new benchmark in the way in which surgical and medical training is delivered.” At the same time, the skills centre project in Torbay (Devon, UK) is progressing rapidly with the construction company selected and the project moving into detailed design stage. Building will commence on this project in Q2, 2007. Medic Vision’s other activities in the UK include simulator sales, software upgrades, and ongoing service and maintenance. Medic Vision currently has in excess of £1.8million of project quotes placed in the UK market, which, combined with our activities in other key markets, brings the total amount of quotes to in excess of A$10.0 million. Ross Horley commented further, “In the majority of these quotations the Company is in a non-competitive position where the customer is currently securing finance through the relevant health system. For the remainder of 2006 and into Q1 of 2007 we will continue to aggressively pursue orders in our existing core markets of the UK and China.”