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Medic Vision Limited

("Medic Vision" or the "Company")

Proposed Strategic Alliance

Melbourne, 3 December 2009

The Board of Medic Vision Limited (the "Board") is pleased to announce that the Company has entered into a Heads of Agreement ("HOA") with Leading Edge Instruments Limited, a private company incorporated in Australia with ACN 138 738 078 ("LEI").  Under the indicative terms of the proposed transaction, Medic Vision will dispose of its medical simulation assets, to LEI for wholly share consideration with a deemed value of A$6.1 million, to be satisfied by way of the allotment of new fully paid ordinary shares in the capital of LEI.  

The proposed transaction is subject to a number of pre-conditions being satisfied, including:

• LEI completing the acquisition of Vibrovein Pty. Ltd (ACN 130 322 646) and its unique vibrating needle device;

• LEI acquiring ASAP BreathAssist Pty. Ltd (ACN 103 385 726) and its respiratory technology, (which can be viewed at: www.digitalfx.com.au/video/BA-draft10-4-07.wmv);

• LEI raising A$2 million in new capital for working capital purposes;

• Approval by each company's respective shareholders at duly convened shareholder meetings; and

• Satisfactory completion of comprehensive due diligence and definitive transaction documentation.

The HOA allows for a period to 1 March 2010 for both parties to complete the proposed transaction and further announcements will be made as appropriate.

LEI has held discussions with two internationally renowned and high profile executives well known in the medical sector and, subject to the proposed transaction being successfully concluded, these individuals have indicated a willingness to join LEI and assist in the delivery of revenue and capital growth.  Under the terms of the proposed transaction, Medic Vision would also have the right to appoint at least one director to the board of LEI. 

Following completion of the proposed transaction, it is currently expected that Medic Vision will hold approximately 40% of LEI's enlarged issued ordinary share capital and the Company currently intends to retain such a shareholding as a medium to long term investment.

The Board believes that the proposed transaction will assist the Company in unlocking and realising the significant inherent value in the Company's medical suite of products and will serve to enhance long-term shareholder value.

For further information, please contact:

Vince Leone Chief Executive Officer & President Medic Vision Limited	Email: vince.leone@medicvision.com.au Mob: +61 421 054 140
Stuart Faulkner / David Altberg Strand Hanson Limited	Tel: +44 20 7409 3494
Ruari McGirr Astaire Group Plc	Tel: +44 20 7628 5582

Background on Medic Vision Limited

Medic Vision is a technology based company specialising in the application of technology for surgical and medical skills training. Medic Vision provides consulting services in the development of skills training centres as well as developing and deploying computer-based surgical and medical high fidelity simulators.

See www.medicvision.com.au for more details

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