Allied Healthcare Group Ltd : Allied Announces Placement and Share Purchase Plan

ASX ANNOUNCEMENT

Brisbane, Australia, 17 December 2012

Allied Healthcare Group (ASX: AHZ) announces it has successfully completed an oversubscribed strategic placement which raised $1.7 million, and the launch of a share purchase plan (SPP). The placement, targeting sophisticated investors and institutions, and the SPP are priced at
$0.02.
Funds raised from the placement and SPP will be used primarily to support the preparation of the Company's CardioCel® heart patch prior to its imminent launch. Allied expects CardioCel® will receive marketing approval in the first half of 2013 in at least one global jurisdiction.
Allied has existing and growing revenue that is forecast to be over $7m this financial year. Approval of CardioCel® would represent a major inflection point for Allied as it is expected to result in a significant increase in global revenue for the Company. Allied is expecting to also submit CardioCel®'s 510K marketing approval application with the FDA in the 1st quarter of
2013.
"CardioCel® is on the cusp of global approvals so we need to ensure we maximise the impact it has in the market with extensive pre-launch preparation of the product," said Allied Healthcare Group Managing Director Lee Rodne.
"The approval of CardioCel® will be a major step for the Company in building a sustainable, integrated global healthcare company in 2013.
"The market potential for CardioCel® is substantial. If the initial launch of CardioCel® is received well, our revenue will increase significantly over the next 12-24 months."
The Company is seeking initial approval for the use of CardioCel® in the repair and reconstruction of congenital heart disease (CHD) defects in infants and children. Once CardioCel® receives its initial approval, Allied will aim to expand the applications for the product in additional cardiovascular areas, such as adult heart valve repairs and reconstructions.
Studies have shown CardioCel® has unique properties which make it suitable for use by surgeons as a regenerative cardiac repair tissue patch, as well as delivering key benefits to patients compared to existing surgical approaches. News network interviews with two respected surgeons can be viewed on the Allied Healthcare Group website, as well as an animation explaining the use of CardioCel® in congenital heart disease surgery.
http://www.alliedhealthcaregroup.com.au/video

ABN 35 088 221 078

Level 1, 197 Adelaide Terrace

Perth Western Australia 6000

PO Box 6879 East Perth

Western Australia 6892

T +61 (0)8 9266 0100

F +61 (0)8 9266 0199

E info@alliedhealthcaregroup.com.au