17 January 2008The ManagerCompany AnnouncementsAustralian...

17 January 2008
The Manager
Company Announcements
Australian Securities Exchange Limited
4th Floor, 20 Bridge Street
SYDNEY NSW 2000


Dear Sir

Advanced Ocular Systems Limited (AOS) is pleased to provide shareholders with an update on its
current activities as follows:

Share Placement:

As previously announced to the market in December 2007, AOS indicated that it was proceeding with a placement of $2.4 million in new ordinary shares at 3 cents each with an attaching free option exercisable at 5 cents prior to 31 July 2008, with a right to accept further subscriptions
subject to investor demand but not to exceed $3.6 million in total.

The Company is pleased to announce that it has raised a total of $3.5 million, representing the issue of 116.7 million shares and options to professional investors. A shareholder meeting will be called to ratify the placement amount that exceeds the 15% placement capacity of the company.

Eye Care Update:

As noted also in the December 2007 release, AOS was expecting the payment of the final milestone payment from Alcon Inc relating to successful registration of their product TRIESENCE™. The Company is pleased to confirm that the sum of US$1.0 million has been received from Alcon.
Shortly, the Company expects to be in a position to update shareholders regarding the proposed $18 million spin off of the eye care assets to a new listed entity.


Yours truly,
Eva Skira
Chairman

......................

Exciting day tomorrow no doubt.

Cheers,
T