Excellent ... in Summary for those who need a quick read .... "...

Excellent ... in Summary for those who need a quick read ....

" The quarter ending June 2015 has been one of substantial progress and growth for OBJ Limited (ASX:OBJ) with the expansion of a number of existing partner programs, commitments to long term development programs and the emergence of new opportunities for the company.

FINANCIAL

The company remains in a solid financial position as revenues accelerated during the period. Receipts for the quarter were $347,919 to provide a total of $436,196 for the year.

A substantial portion of the costs of the University of Queensland study were met during the period and an expansion in staff and capabilities within the company’s advanced skin science laboratory were also committed. At the close of the period the company had $3.59 million in cash reserves.

PROCTER & GAMBLE (P&G)

SK‐II Future Commitments Following the successful limited product launches of the SK‐II Eye Care product in South Korea, Hong Kong, Taiwan, Japan and China, and the completion of consumer acceptance data analyses, SK‐II informed OBJ of its intentions to broaden the sales and marketing of the SK‐II Eye Care product by making it a feature in future seasonal marketing programs.

SK‐II management also granted permission to announce the next SK‐II product to incorporate OBJ technology. Code named Wave II, the pre‐launch programs are well advanced as OBJ’s development team has been working with SK‐II on this next generation product throughout 2014/2015. In another boost to the relationship with SK‐II its management has committed to a 3‐5 year program with OBJ to develop a range of new innovations incorporating OBJ’s technologies.

Additional Work Plan

The Product Development Agreement (PDA) executed with P&G in 2014 together with the various Work Plans that form the operational part of the PDA were further expanded during the period with the execution of a significant OBJ RELEASE 31 July 2015

Registered Office: 284 Oxford Street Leederville Western Australia 6007 Tel: +61 8 9443 3011 Fax: +61 8 9443 9960 www.obj.com.au ABN: 72 056 482 636 product Claims Support Work Plan. Under this Work Plan, OBJ’s skin science laboratory will undertake certain product testing on behalf of P&G for regulatory and market support purposes.

The commitment for OBJ to undertake this crucial phase is an indication of the level of comfort the various P&G franchises have in OBJ’s scientific capabilities. All other Work Plans progressed to the satisfaction of both companies during the period.

COTY

Development of the Coty enhanced delivery device accelerated during the quarter with OBJ’s completion of the delivery electronics and production of the first 3D working prototypes. These prototypes are now in the hands of Coty’s New York team leading to the intended consumer concept testing program previously announced.
This has the potential to be a milestone project for OBJ as it may be the first commercial application for the company’s dermaportation technology following the concept testing program.

The patents for dermaportation have already been granted to OBJ in both the USA and Europe.

BODYGUARD

With the commencement of the double blind clinical study by the University of Queensland (UQ), the BodyGuard team was able to turn its attention to production‐related matters. International manufacturing consultants in the UK and USA are now working with the BodyGuard team in the evaluation of a number of production technologies to determine the most cost‐effective, high‐ volume production techniques for each of BodyGuard’s three product platforms.

Procter & Gamble has an agreement with BodyGuard to have first access to results of the UQ study regarding the performance of the KneeGuard product. During the period the company has had discussions with two additional potential partner companies seeking access to the BodyGuard technology, including the HotDots micro‐patch system and its SuperTube analgesics product range.

GLAXOSMITHKLINE (GSK)

The company’s programs with GSK were impacted by extensive restructuring within GSK’s international brand architecture. The oral healthcare programs remained unchanged during the period.

Topical analgesics rose in importance with the completion of the GSK/Novartis joint venture and with renewed interest in OBJ’s DCE technology for OTC topical analgesic delivery coming from the newly reformed GSK Pain Management group in Singapore.

GSK’s medicated skincare group has now re‐engaged with OBJ’s team following migration of its medicated skincare R&D from New Jersey to the UK. Excellent working relationships remain in place across GSK.

NEW POTENTIAL PARTNERING ACTIVITIES

The quarter has seen an increasing number of approaches from new potential partners from Europe, USA and Asia to evaluate the potential for including OBJ’s technologies into their product lines. Discussions are in early stages but these may lead to some exciting opportunities as the scope is defined for such development.

TECHNOLOGY DEVELOPMENT

New DCE Technology The period saw the announcement that the company had filed provisional patent specifications with OBJ’s newest technology called Dynamically Configurable Emulsion (DCE) technology.

DCE is a new technology platform for enhanced product performance that builds upon OBJ’s expertise in the manipulation of atomic force physics. DCE is a special roller‐ball style applicator system that allows OBJ to stratify and arrange the various components of a standard low‐cost emulsion into specific functional layers during application to the skin.

DCE’s ability to convert a simple low‐cost emulsion into a self‐assembling, self‐occluding multi‐functional product during application to the skin has already created considerable excitement and interest from both current and new partners.

Connect Beauty

The company’s web‐enabled personalisation system previously referred to as e‐ Skin also progressed substantially during the period with new levels of interest in ConnectCare and online marketing coming from multiple partner companies.

The company is expanding its investment in this potentially high‐growth area and is in active partnering discussions concerning its possible commercialisation.

OBJ RELEASE 31 July 2015 Registered Office: 284 Oxford Street Leederville Western Australia 6007 Tel: +61 8 9443 3011 Fax: +61 8 9443 9960 www.obj.com.au ABN: 72 056 482 636

Other Events

The company has received the Good Design Selection Award in the Product Design category of this year’s Australian Good Design Awards for the SK‐II Eye Wand design.

Good Design Selection is an award granted to finalists in recognition of design excellence and from which the coveted Good Design Award winner is selected. The SK‐II Eye Wand was conceived and developed by OBJ’s product development team and then refined in conjunction with Design + Industry and manufactured through one of OBJ’s preferred manufacturers in Singapore.

For more information: OBJ Limited: 284 Oxford Street Phone: +61 8 9443 3011 Mr Glyn Denison – Director Leederville Fax: +61 8 9443 9960