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Business Summary SomnoMed Limited (SOM) provides diagnostic and treatment solutions for Sleep-related Breathing Disorders including obstructive sleep apnea, snoring and bruxism. SOM operates in 23 countries worldwide through its wholly owned subsidiaries, with a focus on US market. SOMs flagship commercialised product is called SomnoDent. Products: Somdonent is an oral appliance treatment for obstructive sleep apnea. The current product line includes SomnoDent Classic, Flex, Edentulous and Edentulous Flex. SOM has global production facilities with its licensed partners and wholly owned production facilities in Dallas, USA, Sydney, Australia and Manila, Philippines. As at December 2011, SOM sold its products to three main markets namely USA (63%), Europe (25%) and Asia pacific (12%). Currently, SOM focuses on the SomnoMed MATRx, which has already been approved by US DFA. The MATRx system is used in sleep laboratories to identify patients that will be successful with oral appliance therapy. Operations: SOM is commercialised on the basis of clinical research. The operations engage in supporting independent clinical research, continuous innovation and instituting medical manufacturing standards. The operations also involve in medical oral appliance therapy for obstructive sleep apnea. SOM operates its business through its wholly-owned subsidiaries in Australia, Singapore, Philippines, Japan, USA and Europe. JV & Partners: SOM holds 50/50 JV with the owner of all IP relating to the core product SMH B Flex. SMH B Flex is the unique material for SomnoDent and is used in over 70% of SOMs oral appliances. In addition, SOM has recently formed a partnership with Sleep Healthcenters to create the National Center for Integrated Dental Sleep Health (NCIDSH) program, a national service to diagnose and treated sleep disordered patients. In addition, SOM has formed a partnership with Benco Dental in USA in order to develop the dental sleep medicine. Acquisition: As at 17 January 2012, SOM acquired the Dutch oral appliance distribution company Goedegebuure Slaaptechniek B.V. The acquisition provides an expansion of the SomnoMed product range in the Netherlands and European market. GICS - Healthcare SomnoMed Limited ASX Code: SOM Price: $0.800 Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investment objectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement with Bell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell Potter Securities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate. Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document. This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is general investment advice only and does not constitute advice to any person. **Bell Potter covers the following ASX Codes: AAX,ACL,AHE,ALZ,AMM,ANG,ANN,ANZ,API,APK,AQA,AQG,ASL,AUN,AWC, BDR,BEN,BHP,BKN,BOQ,BRC,BTT,BYL,CAA,CAH,CBA,CGF,CHN,CMG,CMJ,CND,COH,CQT,CSL,CTM,CVN,DJS,DLX,EHL,ELD,FFF,FGE,FMG,GBG,GCS,GNC,GRR,HIN,HZN,IDO,IFL,IIN,ILU, INQ,IRD,JBH,JMS,JPR,KAM,KCN,KRM,KZL,LCM,MGX,MIN,MLB,MLX,MND,MQG,MRM,MYR,NAB,NCM,NEC,NEN,NVT,NWH,NXS,OZL,PDN,PEA,PLA,PMV,PPC,PPT,PRG,PRY,PTM,QRX,RCR, RDF,RED,RHC,RIC,RIO,RMD,RMS,ROK,RRL,SBM,SDL,SDM,SHL, SHV,SKE,SLR,SLX,SPL,SUL,SUN,SWM,TFC,TLS,TRS,TRY,TWO,VMG,WBB,WBC,WDS,WEB,WEC,WPL,WSA,WTP. Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in this commission. Bell Potter Securities and its associates may hold shares in the companies recommended. Snapshot Date Market Cap. Shares on issue 12 Month High 12 Month Low 10 July 2012 $34m 42.0m $1.48 $0.80 Investment Fundamentals FYE 30 Jun 2008A 2009A 2010A 2011A Profit $m -2.7 -1.8 0.8 0.7 Profit (norm)* $m -2.7 -1.8 0.8 0.7 EPS* ¢ -8.4 -4.7 2.0 1.8 EPS Growth % 0.0 0.0 0.0 -9.8 P/E* x 0.0 0.0 39.2 43.5 P/E Relative % 0.0 0.0 3.0 4.3 DPS ¢ 0.0 0.0 0.0 0.0 Yield % 0.0 0.0 0.0 0.0 Franking % 0.0 0.0 0.0 0.0 * Adjusted for unusual items Source: Aspect Huntley historical financials Share Price Chart Total Return on $10,000 Investment
