Simavita releases progress update

SYDNEY, AUSTRALIA--(Marketwired - Oct. 20, 2016) - Simavita Limited ("Simavita" or the "Company") (ASX:SVA) today delivered a progress update to the market. In a few short months the Company has delivered significant change. We have:

• Substantially increased sales, whilst reducing cost of goods sold, for our existing product range SIM™. Details of financial results will be included in the Company's forthcoming Appendix 4C announcement to the ASX.
• Materially reduced operating costs and outward cash flow.
• In record time, our team has delivered a new and exciting incontinence management product AssessPLUS for new markets with significant unmet need.
• Achieved a number of land mark transactions particularly in Australia and Europe.

Background:

Simavita is a world leader in the provision of smart, wearable and disposable sensors in the automated assessment and management of incontinence. Globally, the management of incontinence impacts many millions of people who range from seniors, the disabled and those with significant illness. The market is in the billions of dollars.

In late April 2016, Simavita's major shareholders moved to provide new financing to the Company and to introduce change management, including the formation of a largely new Board of Directors. This strategic change was a significant vote of confidence in the Company's technology platform, its people and its future.

Corporate Strategy:

Fundamental to strategic change at Simavita was the recognition that:

• The Company could not wait to identify and engage a new Chief Executive Officer. Rather, the Board immediately instituted significant change whilst working closely with Executive Managers located in research and development, sales and marketing in our core territories of Australia, Europe and North America as well as corporate commercial management. A CEO will be appointed in due course.
• All non-essential costs incurred by the Company had to be immediately eliminated and all costs tightly controlled well into the future.
• The Company needed to take a fresh approach to its market and to clearly understand what was required by the market. As a consequence, Simavita committed to the rapid delivery of new product that would break down barriers to market entry and open significant new market opportunity outside institutional aged care.
• Simultaneously, Simavita sought to maximize immediate sales results from its existing Smart Incontinence Management product (SIM™) and to maximize our reach within existing institutional aged care markets.

Delivery Milestones: