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Sales contracts worth $2.3 million signed since 1 July 2008

12 / 08 / 2008

Highlights:

$1.2 million contract signed for Phase III schizophrenia study
In total, nine sales contracts signed since 1 July 2008, worth $2.3 million
$3 million in revenue already locked in for FY 2009

CogState Ltd (ASX:CGS) today announced that it has signed a contract with an international pharmaceutical company to provide its computerised cognitive testing technology and associated services for use in a phase III schizophrenia study.

Cognition will be a co-primary endpoint in the large phase III study, which will be conducted in over 70 sites and the CogState technology provided in seven languages. CogState Chief Scientific Officer, Professor Paul Maruff, commented, "In addition to the strength of our scientific validation, CogState was selected from among its competitors because of the ability to successfully apply the CogState systems across different cultures and different languages."

The phase III study will generate in excess of $1 million revenue for CogState over the life of the contract. More than 50% of the total revenue from the contract will be recognised by CogState in the year ending 30 June 2009.

CogState also announced that an additional eight contracts have been signed since 1 July 2008, taking the total to nine contracts signed with a combined value of approximately $2.3 million. Of the $2.3 million contract value, CogState expects approximately 63% of that revenue ($1.46 million) to be recognised in the financial year ending 30 June 2009.

Taking into account the contracts in place at 30 June 2008 as well as those signed since 1 July 2008, CogState now has contracts that will generate in excess of $4 million of revenue over the life of the contracts. CogState expects approximately $3 million of that revenue to be recognised in the financial year ending 30 June 2009.

CogState CEO, Brad O'Connor commented, "The value of contracts in place at this early stage of the financial year puts CogState in a tremendous position to continue our revenue growth in the 2009 financial year. This time last year we had contracts in place that would generate $1.4 million of revenue over their life, $1.1 million of that in the 2008 financial year. So our position is significantly stronger than it was only 12 months ago."