MIGHT STILL HAVE A CHANCE, FINGERS CROSSED.NEEDLEFREE...

MIGHT STILL HAVE A CHANCE, FINGERS CROSSED.

NEEDLEFREE COMMERCIALISATION ARRANGEMENT Medical technologies group Norwood Abbey Ltd [ASX:NAL] advises that it has entered into a new
agreement with the Massachusetts Institute of Technology (MIT) that replaces the previous license
over all patents and all intellectual property flowing from its sponsored research in relation to the
Needle-free project.

Under the new agreement, NAL will be entitled to 25% of the net revenues flowing from the future
development and/or commercialisation of the Needle-free technology. Net revenues shall be
determined after allowance for MIT administrative costs, un-reimbursed patent prosecution costs and
previous amounts outstanding to MIT under the prior Sponsored Research Agreement. MIT will
assume all responsibility for ongoing management and commercialisation of the technology. NAL will
have no further financial obligations in relation to the Needle-free project, including current accrued
costs of approximately US$510,000.

NAL is very pleased with the new arrangement which provides NAL with an opportunity to benefit
from future commercialisation.

Company Update

Norwood is continuing its program of restructuring. This has entailed numerous and extensive
discussions and negotiations, resulting in a significant reduction in the carrying value of liabilities.

These outcomes, together with the dividend received from Norwood Immunology, have brought the
company to a position where it is now able to complete its half-yearly and annual accounts.
Processing of these two sets of accounts concurrently will reduce the overall costs to the company.

It is expected that, upon completion of the audit process, the company will be in a position to seek a
resumption of quotation. This is likely to occur towards the end of July.
Whilst it is unfortunate that the company's share have not traded for several months, the processes that have been followed will result in the company reducing its liabilities form over $5 million just over
year ago to around $500,000. This is seen as a pleasing outcome given the effects on fund-raising of
the global financial crisis.

Norwood also advises that it is continuing to work towards a merger with another group. A pre-
requisite to completing such a deal has been the resolution of the overall liabilities position. The
company now expects to be able to progress prospective merger opportunities vigorously. A further
detailed update is planned immediately prior to re-quotation of the company's shares.To find out more about the Norwood group, visit www.norwoodabbey.com

For further information please contact:

Norwood Abbey Ltd
+61-3-9770-0063