Premier Bionics to sell PulmoSonix in A$2.25 million stock deal

By Elaine Rigoli

Tampa, Fla., Sept. 5 - The directors of Premier Bionics Ltd. said it will sell the company's subsidiary, PulmoSonix Pty. Ltd., to Salus Technologies Ltd.

The disposal of PulmoSonix by Premier will be completed in stages and shares will be issued to Premier based on the achievement of pre-set milestones.

The maximum consideration payable amounts to 45 million new Salus shares, which, at a notional value of 5 cents each being the recent price for a placement of new shares in Salus, values PulmoSonix at A$2.25 million, following achievement of the milestones, with 10 million shares to be received on settlement and the balance of 35 million shares to be issued in three tranches.

The shares received by Premier will be held in voluntary escrow for a minimum of 12 months and are expected to be retained by the company after this initial period.

Currently, PulmoSonix's activities are confined to research and development in the area of respiratory acoustics and as such have operated at a loss.

In the year ended June 30, 2005, PulmoSonix reported a loss of A$1.5 million and had negative net tangible assets of A$0.4 million, a result of loan funds provided by Premier.

Premier is a biotechnology company based in Melbourne, Australia.

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