18 March 2010ASX ANNOUNCEMENTRe: Market update on Sigma on-going...

18 March 2010

ASX ANNOUNCEMENT

Re: Market update on Sigma on-going process to finalise its year end results

Following its announcement to the Australian Securities Exchange on 25 February 2010 in relation to
possible adjustments to earnings guidance, Sigma is in the process of finalising its full year accounts for the
year ended 31 January 2010.

As a result of increased recent market pressures (in the generics business in particular) the future cash flow
forecasts that support the carrying value of goodwill have declined. The reduction in the expected cash flows
combined with changes in Sigma's estimated cost of capital are likely to result in a material reduction in the
carrying amount of goodwill on Sigma's balance sheet. The extent of the adjustments required has not been
finalised.

In addition, while further analysis is still required and the extent of adjustments is still being fully assessed,
the full-year results for the year ended 31 January 2010 are likely to be impacted by certain adjustments to
reported profits. These adjustments relate in particular to items such as inventory provisioning and writedowns,
redundancy provisioning and licence carrying values. Most of these adjustments are non-cash items.

As a consequence of these developments, while the extent of the impact has not been finalised, it appears
unlikely the company will be in a position to pay a dividend in respect of the second half of the financial year ended 31 January 2010.

Sigma is in discussions with its lenders to resolve the implications of these expected adjustments for its
banking covenants. While the covenants will require revision and renegotiation which will take time, Sigma
believes the discussions are both positive and constructive.

While this process will lead to adjustments to the year end accounts, the Board and management are
confident Sigmas operational and trading performance remains sound.

Business continues as usual and this process has not compromised Sigmas ongoing service levels to its
customers or its relationships with its suppliers.
The company recognises the uncertainty felt since the trading halt announcement on 25 February 2010 by
those suppliers and customers, as well as staff and investors, but it has a duty to ensure that the market is
fully informed of the companys position before its shares resume trading on the ASX. Sigma expects to
provide further information to the market on 23 March 2010, the originally scheduled date for the release of
its full year results.

Sue Morgan-Dethick
GENERAL COUNSEL AND COMPANY SECRETARY

WTF!