CHAIRMAN COMMUNIQUE : BUSINESS UPDATE

Leading Australian-based medical diagnostic devices company, Compumedics Limited (ASX: CMP), updates the market on its recent activities in the following letter from its Chairman, Mr David Burton.

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Compumedics Business Update

Melbourne Australia, Wednesday, 11 February, 2009

Leading Australian-based medical diagnostic devices company, Compumedics Limited (ASX: CMP), updates the market on its recent activities in the following letter from its Chairman, Mr David Burton.

“Dear Compumedics stakeholders,

The primary purpose of this communiqué is to provide an update of Compumedics’ operational and strategic progress, together with the outlook moving forward. While Compumedics is not impervious to the current global financial crisis, our diagnostic business remains strong. Based on the financial data and the Company’s substantial new-product pipeline the business continues to demonstrate sound financial performance and an encouraging outlook. Moreover, the Company was profitable again for the 2008 December half-year-period. This marks our 5th consecutive profitable reporting period to market. Details of the December-end 2008 half-year results will be released in the last week of February.

Over the past two years the Company’s earnings have improved by AUD 5M, debt reduced from AUD 6.5M to AUD 1.9M, manufacturing gross margins have improved by 7%, and costs have reduced by AUD 5.0M. The Company has also consistently generated positive cash over this period (see attached data).

However, the Company is not complacent and based on the current economic and financial conditions the Company’s efforts will be increased as we continue to focus on our principal strategic and operational goals. Firstly, our core business will be strengthened with the roll-out of two comprehensive and advanced new technological platforms designed to rejuvenate our core sleep diagnostic and EEG businesses. Secondly, the Company’s distribution, sales, and marketing teams, bolstered by our new product offerings, continue to drive harder and achieve higher levels of revenue, market share, and competitiveness across all core business units. Thirdly, we are continuing to focus on strategic investor opportunities and programs and the strengthening of Compumedics’ Board.

Finally, the Company’s growing annuity-type revenues, coupled with these financial and product pipe-line factors, demonstrate that Compumedics’ financial position, trends and business model are sound. Whilst this year will undoubtedly test our mettle, we look forward to sharing with you the attached financial snapshot overview, and the series of positive forthcoming announcements as we continue to strengthen your company and move forward in 2009.

Yours sincerely,

David Burton

Executive Chairman and CEO”