1

MARKET UPDATE

One of the few medical device companies globally with the leading edge technology to participate in the remote

monitoring of chronic disease symptoms.

Respiri is a software company with decades of experience in researching and developing clinical products for

hospitals. Respiri has the world’s first digital wheeze detection technology for the management of asthma. Smart

proprietary machine learning algorithms detect and measure wheeze, the major symptom of asthma.

New, leading edge technology has recently been employed in its consumer product, the AirSonea® Wheeze

Monitor, an over the counter remote monitoring product that is not reliant on doctor prescriptions. Respiri has a

large global target market of parents and carers of children who cannot use lung function tests.

Health conscious consumers are rapidly embracing patient self-management and remote monitoring with

smartphones that provide the growth engine for the company’s AirSonea product.

2

RESPIRI LIMITED

Outstanding progress in delivering an asthma monitoring and management business model that uses acoustic

sensors, leading edge machine learning algorithms and software platforms to deliver an over the counter

consumer product without the need for GP prescriptions.

1. Established a clear product position in a major asthma segment with no current competitor.

2. Targets a major unmet consumer need with its primary market, parents and carers of children.

3. Delivers outstanding technology with its leading edge software platform and smart sensors.

4. Commenced ground breaking research and product development for the overnight monitoring of asthma

symptoms.

5. Undertaking exciting partnership discussions for global and regional markets with a primary focus on UK and

Asia.

3

Current company valuations do not reflect Respiri's unique competitive position in a major global

asthma segment and the strength of its leading edge mHealth software platforms.

There is compelling evidence for asthma self-management and respected industry leaders in the

UK, China and the USA now recognise that mHealth solutions can transform asthma care.

RESPIRI STRATEGY & INVESTMENT ATTRIBUTES

4

RESPIRI CORPORATE SNAPSHOT

CAPITAL STRUCTURE

ASX code RSH

Shares on issue 432mil

Unlisted options

(various ex. prices)15.1mil

Share price6.0

cents

Market capitalisation $25.9mil

BOARD OF DIRECTORS

Leon L’HuillierExecutive

Chairman

Tim OldhamNon-Executive

Director

John Ribot-de-

BresacNon-Executive

Director

SHARE REGISTER

Top 20 shareholders 37.95%

Substantial

shareholders:

Investment Holdings

Pty Ltd

17.05%

Total number of

shareholders

(30 August 2016)

4,315

5

WHEEZE IS THE MAJOR SYMPTOM OF ASTHMA

Normal

Bronchiole

Airway

Muscle layer

Mucus gland

Inflamation & mucus

Muscle contracts

Airway opening is

reduced

Asthma

Airflow Limitation The main symptoms of asthma:

Wheezing

Shortness of breath

A tight chest

Coughing

When airways become inflamed, flow

pressure changes during respiration causing

the airway wall to flutter. This flutter results

in acoustic energy, or wheeze. The flutter or

wheeze is a manifestation of airway flow

limitation.

“... People with asthma typically experience

wheezing.”

“... If an infant presents with frequent and/or

severe episodes of recurrent wheezing they

should be diagnosed and managed as asthma,

unless there is evidence to the contrary.”

Global Asthma Report 2014

Over 340 million people globally suffer from asthma, rising to 400 million by 2025

• Asthma still kills and 2/3 of asthma deaths are preventable

• Poor asthma management is a major problem and an economic burden on society

Respiri is focused on one clear segment of the asthma market: objective measurement of wheeze

in diagnosed asthmatics with a convenient and easy to use consumer product.

Diagnosis

Difficult. No ‘single reliable gold

standard test’.

Spirometry devices to measure airflow

and limitation are the universally

accepted device by physicians.

Multiple manufacturers

Monitoring & Management

Assessing symptom control and risk,

using paper asthma plans.

Outdated peak flow meters the only

competitor and do not work for

consumers due to poor technique and

inaccurate recording.

Respiri’s AirSonea®

Medication compliance

Smart inhaler devices connected to

smart phones to measure and track

medication compliance.

Propeller Health, 3M, Adherium

6

CLEAR PRODUCT POSITION IN ASTHMA SYMPTOM MONITORING & MANAGEMENT

WITH NO CURRENT COMPETITOR

Primary target market: Parents and carers of children. Secondary target market older people.

Latest independent consumer market research (November 2016)

Parents: “crying out” for greater support and understanding to proactively manage a child's asthma.

• Greater understanding of child’s condition and ability to detect any early signs of change. Often cannot

remember all the asthma sign/trigger details leading up to an asthma episode – they are stressed, living busy

lives.

• Would like asthma period/historical data and trends that they are able to discuss with GP to enhance

management.

• Want a tool that they can send with their child to grandparents, on sleepovers and on holidays to monitor their

child’s asthma status. Confirms previous consumer research by Proctor & Gamble/Tremor and EY Sweeney.

Healthcare Professionals:

• Over three-quarters of healthcare professionals in the UK said they would value a mHealth system that would

monitor patients’ asthma symptoms between visits and provide patients with an asthma action plan.

Asthma Associations:

• Mark Brooke, Asthma Australia. “Poorly managed asthma has tragic consequences and better treatment plans

are needed”.

• Kay Boycott, Asthma UK. “The majority of the people in the UK would welcome a mHealth solution to help them

manage their long term condition”.

7

TARGETS A MAJOR UNMET CONSUMER NEED WITH ITS PRIMARY MARKET,

PARENTS & CARERS OF CHILDREN

AirSonea® utilises a PPG sensor to capture breath sounds at the

trachea. The optimal position for the recording of wheeze is over

the trachea (children, adults & small children). Professor Noam

Gavriely.

The sounds are transmitted to the smartphone application by

Bluetooth and in near real time, the proprietary wheeze

detection algorithm processes the sonogram calculation and

performs the acoustic analysis to deliver a WheezeRATE, an

estimation of the total time of wheeze events as a ratio from the

entire signal. For example, if 15 seconds out of a 30 second

record contained wheeze, the Wz% is 15/30 = 50%.

Respiri’s software solution includes breath detection and

ambient noise rejection.

Medical devices with sensors and connected smartphone

applications are universally used by world leaders for chronic

disease management:

– Dexcom – Diabetes

– Propeller Health – Asthma medication compliance

– Omron & Philips – Blood pressure & ECG

8

DELIVERS OUTSTANDING TECHNOLOGY WITH ITS LEADING EDGE

SOFTWARE PLATFORM & SMART SENSORS

AirSonea app is a digital asthma diary providing

vital monitoring features.

Our proprietary software correlates WheezeRATE

measurements with other asthma symptoms and

triggers, and inhaler use. This helps the patient

understand what triggers are causing their

symptoms and how to avoid possible flare-ups.

The patient has a real time picture of their asthma

in the palm of their hand and doctors have the

complete picture to provide the best possible

individual advice.

The app allows users to set reminders to take

WheezeRATE measurements and preventer

medication to encourage adherence.

AirSonea’s Health Chart clearly shows the correlation between

WheezeRATE, adherence to medication schedule (green dot)

symptoms & triggers (red dot) and the effectiveness of reliever

medication (yellow dot).

This example shows spikes in the WheezeRATE when the preventer

medication has been missed. After the user takes their reliever, the

WheezeRATE drops.

9

A smart digital technology platform for the monitoring and management of asthma

Respiri has accelerated Research & Development expenditure in its 1st half (Q1 $495k)

to have in place a leading edge platform for partner discussions.

DELIVERS OUTSTANDING TECHNOLOGY WITH ITS LEADING EDGE

SOFTWARE PLATFORM & SMART SENSORS

10

• Recently achieved a major milestone with an independently

run research study, conducted by the University of Chicago,

confirming that the AirSonea® technology can reliably detect

wheezing in subjects. The overall percentage agreement

between a panel of certified pulmonary physicians and our

AirSonea technology for the presence or absence of wheeze

was an impressive 85%.

• Long history of previous studies on digital wheeze monitoring

published in prestigious journals by world class physicians and

scientists.

• Multiple studies conducted at major global hospitals including:

Royal Brompton Hospital, London, UK, University of

Edinburgh, Scotland, Charite University Hospital, Berlin,

Germany, University of Chicago, USA, Hadassah University

Hospital, Jerusalem, Israel, Rambam Medical Centre, Haifa,

Israel, Massachusetts General Hospital, USA, California Allergy

and Asthma & UCLA, USA

• 44 patents granted.

LONG HISTORY OF INDEPENDENT SUCCESSFUL CLINICAL STUDIES

Respiri's overnight monitoring research and development, in conjunction with Planet Innovation and

leading academics, will dramatically broaden the company's software technology offering and has

generated strong interest from our industry.

Children's asthma symptoms often worsen overnight, cause great distress to parents and increase healthcare

costs with overnight visits to emergency departments.

Our consumer friendly and objective acoustic technology platform will record the duration of wheezes and

coughs and the number of events over 6-8 hours per night from acoustic sensors.

Respiri's clinical, FDA approved WHolter product provides a solid platform for our new wireless technology

that will provide groundbreaking data and new hardware devices outside of a clinical setting to:

• Parents: alarm alerts and valuable data to discuss with their physicians.

• General practitioners and specialist physicians: can review treatments

• Big pharma: evaluate treatment efficacy of their medications

• Big data companies and healthcare systems: identify key trends

• Baby and child monitoring companies: broader product offerings

11

GROUND BREAKING RESEARCH TO DEVELOP A NEW WIRELESS PRODUCT

FOR OVERNIGHT MONITORING

UK: READY FOR CONNECTED MHEALTH TECHNOLOGY

– Report on “Why asthma still kills” produced a damning assessment of current routine practice in asthma care.

– Almost three quarters of people with asthma in the UK would like to see a mobile health device made available that

would help them monitor their asthma.

– A number of top UK NHS physicians wrote research papers on our wheeze detection algorithms and the benefits.

– Asthma UK, the lead industry body, is enthusiastic about mHealth technology for asthma self management.

– The NHS is a tight distribution channel (GPs , nurses, specialists, clinics, hospitals etc.) in geographical clusters.

ASIA: HIGH POLLUTION CAUSING ASTHMA TO RISE

– Around 2 billion children across the world live in areas with high amounts of air pollution.

– South Asia has the largest number of children living in the polluted areas.

– Dangerous levels are known to increase the risk of asthma and lung cancer.

12

COMMERCIAL IN CONFIDENCE PARTNERSHIP DISCUSSIONS:

INITIAL FOCUS ON UK & ASIA

MULTIPLE LARGE REVENUE STREAMS

• Consumer & Physicians

• Retail pharmacy & electronic retailers

• Telemedicine

• Healthcare systems

• Insurance companies

• Employers

PARTNERSHIP OPPORTUNITIES

• Medical device and disease management

• Telehealth service providers

• Big pharma

• Smartphone apps, Smartwatch, Internet of

Things (IoT)

Our clear, overarching objective is to deliver sales and distribution agreements to gain access to global markets

and collaborative ‘hardware’ partnerships to innovative sensor technology rapidly.

• Sales and distribution agreements are universally accepted by leading companies in medical technology to gain

access to major key global markets.

• Collaborative partnerships with agile and innovative design and manufacturing companies to ensure our sensor

technology (Hardware) has best in class design, components, and low cost manufacture.

Our goal is not to diagnose or replace the physician but to help them keep track of their patients progress in

managing asthma care in the home and between their routine visits to the doctor. And, importantly provide peace

of mind to parents and carers of children.

Exciting progress has been made to date during commercial-in-confidence discussions in several countries. Respiri

is viewed as an innovative, high potential mobile health provider that partners with patients and health care

professionals to transform asthma care.

13

MONETISATION OBJECTIVES IN FY17