further debt reduction

FURTHER DEBT REDUCTION
Key points:
· US$3 million (A$4 million) generated through sale of NIM shares
· Funds to be used to extinguish US$3 million convertible debt
· Profit on disposal of immunology shares of A$10.2 million since June 30
· Retention by Norwood Abbey of 48,958,227 shares (39.51%) of Norwood Immunology
shares
Medical technologies group Norwood Abbey Ltd [ASX:NAL] advises that it has entered into an
agreement with Tiedemann Global Emerging Markets L.P. and Tiedemann Global Emerging
Markets QP L.P. (‘Tiedemann’). This is as foreshadowed in the recent announcement relating to
Indus Capital.
Under the agreement, Norwood Abbey will sell to Tiedemann 13,261,427 shares in Norwood
Immunology Ltd (‘NIM’) for approximately US$3 million (A$4 million).
Norwood Abbey has agreed with Tiedemann to use the US$3 million to extinguish the convertible
debt facility extended by Tiedemann to Norwood Abbey in August 2005.
Norwood Abbey’s convertible debt – which at June 30 2006 stood at approximately US$13 million -
will reduce to US$1.5 million following repayments to Tiedemann (US$3 million), Indus (US$7.1
million) and Centrecourt (US$1.5 million).
This transaction enables Norwood Abbey to significantly reduce its debt while facilitating the
introduction to the NIM share register of another major institutional investor.
Norwood Abbey has now generated profits of approximately A$10.2 million through the disposal of
NIM shares since June 30. This profit over the book value of the NIM assets results in a substantial
increase in the net assets on the company’s balance sheet.
In respect of Norwood Abbey’s shareholding in NIM, following completion of the sale of the NIM
shares to Tiedemann, Norwood Abbey will continue to be the largest shareholder in NIM, with
48,958,227 NIM shares. This shareholding will represent 39.51% of NIM’s current issued share
capital.
Tiedemann will itself become a major shareholder in NIM with 13,261,427 shares representing
10.7% of the share capital of NIM.
With the reduction in its debt, Norwood Abbey believes that this transaction also places it in a better
position to focus on its business and the development of long term strategies for extracting value
from its remaining investment in NIM and from its other current projects. It should also allow
Norwood Abbey to focus on its longer term goals.
In due course, Norwood Abbey will provide more specific guidance on its future strategies.
To find out more about the Norwood group, visit www.norwoodabbey.com
For further information please contact:
Norwood Abbey Ltd:
Lula Liossi
Corporate Communications Manager
(61 3) 9782 7333