1. Advancing “oral” treatments for bone & joint diseases especially for osteoporosis and arthritis
Paul Hopper
Executive Chairman
February 2006

2. Safe Harbor Statement
This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are not guarantees of Bone Medical Limited’s future performance and involve a number of risks and uncertainties that may cause actual results to differ materially from the results discussed in these statements. Factors that might cause the Company’s results to differ materially from those expressed or implied by such forward-looking statements include but are not limited to, development and commercialisation of the Company’s product portfolio; development or acquisition of additional products; and other risks and uncertainties. Bone Medical Limited undertakes no duty to update any of these forward-looking statements to confirm them to actual results.
CONFIDENTIAL
 2006 Bone Medical Ltd.

3. Corporate Overview Founded December 2002
Novel, proprietary oral drug delivery technology for musculoskeletal disease
Phase I/IIa clinical trial for oral calcitonin- Capsitonin- completed
Phase I clinical study for oral parathyroid hormone- Perthoxal completed
Listed Public August 2004
Ticker: (ASX:BNE) (ADR:BMEDY.PK)
Office: Bentley, WA, Australia 6102
Shares Outstanding: 64,291,032 (Ordinary); 9,999,204 (Preferred C)
Market Cap ( ): AU$19.3 million (US$15.2 million)
Over AU$5.1MM spent to date developing two core compounds
Approximately AU$1.4 million cash on-hand
CONFIDENTIAL
 2006 Bone Medical Ltd.

4. Investment Highlights
Capsitonin Phase I/IIa clinical trial for “osteoporosis” completed
Capsitonin Pre-IND meeting held with FDA in December 2005
Rapid regulatory process / strategy for Capsitonin- bioequivalence & 505(b)(2) NDA submission
Perthoxal- oral parathyroid hormone for “osteoporosis” Phase I clinical study completed
New, unique oral formulation technology with robust IP and long patent life
“Multi-billion” dollar market opportunity(s) for both Capsitonin and Perthoxal
Balanced portfolio between lower-risk drug delivery programs and potential breakthrough future treatments
Experienced management with experience in science, management and capital markets
CONFIDENTIAL
 2006 Bone Medical Ltd.

5. Market Opportunity Osteoporosis Osteoarthritis Treatments
Approximately 200 million women worldwide
Incidence is expected to “double” in the next 50 years
Estimated US$48.0 million spent to treat disease in North America and in Europe
Osteoarthritis
Over 20 million people in the U.S. alone
Most common form of arthritis, approximately 5-10% of population will develop
Treatments
Calcitonin (sCT): US$600 million
Injectable and Nasal forms only (no oral form available)
Parathyroid Hormone (PTH): US$450 million
Injectable form only (no oral from available)
Sources: International Osteoporosis Foundation, CDC, Mayo Clinic, NIAMS, National Center for Chronic Disease Prevention and Health Promotion
CONFIDENTIAL
 2006 Bone Medical Ltd.

6. Market Need Osteoporosis Osteoarthritis (and rheumatoid arthritis)
Painful and debilitating
Worldwide cost burden to reach US$131.5 billion by 2050
Only 1 in 2 vertebral fractures diagnosed by a physician
Less than 20% of Osteoporosis patients receive timely treatment
Osteoarthritis (and rheumatoid arthritis)
Painful, physically and emotionally debilitating
25% of persons “cannot” perform major daily activities (e.g., lifting, climbing stairs)
“There are no oral formulations available
for calcitonin or parathyroid hormone
limiting the number of treated patients”
CONFIDENTIAL
 2006 Bone Medical Ltd.

7. Product Pipeline Capsitonin (“oral” sCT) Perthoxal (“oral” PTH)
Products / Compounds
R&D
Pre-clinical
Phase I
Phase II
Phase III
NDA
Capsitonin (“oral” sCT)
Therapeutic peptide
1° Osteoporosis, 2°Osteoarthritis
Studies (trials)
designed
to support
bioequivalence
and 505(b)(2) FDA submissions
Perthoxal (“oral” PTH)
Therapeutic peptide
Osteoporosis
BN007 (collagen tolerance)
Oral Immune therapy
Rheumatoid Arthritis
BN006 (TNF down-regulator)
BN008 (Osteoclast down-reg)
BN005 (Osteoblast up-reg)
Novel therapeutic entities
Rheumatoid Arthritis, Osteoarthritis
CONFIDENTIAL
 2006 Bone Medical Ltd.

8. “Calcitonin has been used
Lead Compound
“Calcitonin has been used
Safely as a treatment
for osteoporosis
for over 30 years!”
Capsitonin Oral Capsule
(synthetic salmon calcitonin peptide)
Synthetic peptide
of salmon calcitonin
Mechanism of Action:
Calcitonin aids in the “formation of new bone” by interfering with osteoclast activity.
Use/Indication:
Osteoporosis, Osteoarthritis
Side Effects:
Mild, some joint ache, headache
CONFIDENTIAL
 2006 Bone Medical Ltd.

9. Enteric coating for easy swallowing
Novel Oral Formulation
New, proprietary oral drug delivery technology
Enteric coating for easy swallowing
Capsule Contents:
Drug, stabilizers, solublizers, protease inhibitors,
various GRAS pharmaceutical excipients
Gastric (stomach) cellular surface ●
Capsule
contents
Improved transcellular absorption
Recombinant peptides (Capsitonin and Perthoxal) are protected from gastric degradation
Released in the upper intestine in an area with high peptide absorption
Utilizes existing approved substances and/or excipients
Opportunity for rapid 505(b)(2) FDA submission
CONFIDENTIAL
 2006 Bone Medical Ltd.

10. Capsitonin Oral Capsule
Background
Existing injectable and nasal formulations of calcitonin are difficult to administer affecting patient compliance and limiting its use as a treatment option
To date, an “oral” formulation of calcitonin has been unable to be developed
Capsitonin
Pre-clinical / Proof-of-concept
Decrease in plasma calcium following oral (tablet) administration of Capsitonin in pigs compared to subcutaneous (injection)
minutes
Increase in total plasma Capsitonin following
oral (tablet) administration of to primates
Novartis Study
hours
CONFIDENTIAL
 2006 Bone Medical Ltd.

11. Capsitonin - Phase I/IIa
Study Objective
Phase I/IIa open label safety & tolerability and preliminary efficacy / activity
Study Design
12 post-menopausal, female volunteers
Sequential, cross-over design
Positive control (Miacalcin Nasal) – active comparator
1250iu Capsitonin
2500iu Capsitonin
Measurement of key biomarkers: serum calcitonin, serum CTX, and blood calcium
CONFIDENTIAL
 2006 Bone Medical Ltd.

12. Capsitonin - Phase I/IIa
Study Results / Outcomes
The study showed that Capsitonin can be delivered orally and exert a statistically significant biological effect
Measurement of markers of bone breakdown in the blood showed that Capsitonin reduced bone destruction
Calcitonin (in a small number of patients) was measured in blood
Calcium levels in the blood were also reduced as expected
Safe and well tolerated
CONFIDENTIAL
 2006 Bone Medical Ltd.

13. effects of parathyroid
Lead Compound
“The bone forming
effects of parathyroid
hormone have been
known for 70 years!”
Perthoxal Oral Capsule
(synthetic parathyroid hormone peptide)
Synthetic peptide
of the human hormone
Mechanism of Action:
A controlling agent for maintaining normal calcium levels in the blood for strong bone formation of new bone.
Use/Indication:
Osteoporosis
Side Effects:
Some leg cramps, mild headache
CONFIDENTIAL
 2006 Bone Medical Ltd.

14. Perthoxal Oral Capsule
Background
Existing injectable and nasal formulations of parathyroid hormone (PTH) are difficult to administer affecting patient compliance and limiting its use as a treatment option
To date, an “oral” formulation of PTH has been unable to be developed
Perthoxal
Pre-clinical / Proof-of-concept:
Time [hours] 2 4 6 8 10 1 3 5
Calcemia [% change]
0.0
4.0
8.0
12.0
500ug PTH orally
50ug PTH s.c. injection
Increase in total plasma calcium following
oral (tablet) administration of PTH to primates
Increase in plasma calcium following oral (tablet) administration of PTH in primates compared to subcutaneous (injection)
CONFIDENTIAL
 2006 Bone Medical Ltd.

15. Perthoxal - Phase I Study Objective Study Design
Phase I open label safety & tolerability study and preliminary pharmacodynamic effects
Study Design
18 post-menopausal, female volunteers
Sequential, cross-over design (12 of 18 patients only) of two different formulations of Perthoxal
Positive control (s.c. injected PTH) – active comparator
Formulation (1) 450ug Perthoxal
Formulation (2) 400ug Perthoxal
Measurement of key biomarker: serum calcium concentration
CONFIDENTIAL
 2006 Bone Medical Ltd.

16. Perthoxal - Phase I Study Results / Outcomes
The study showed that Perthoxal was able to be delivered safely and that measurable amounts of calcium were able to be detected in serum
One Perthoxal formulation showed levels of measurable calcium
Both Perthoxal formulations were shown to be safe and well tolerated
CONFIDENTIAL
 2006 Bone Medical Ltd.

17. Competition Calcitonin Nasal Spray (commercially available)
Miacalcin® Nasal (Novartis), Fortical Nasal (Unigene Laboratories), Calcitonin-Salmon Nasal Spray (Nastech)
Injectable (commercially available)
Forcaltonin® (Unigene Laboratories)
Oral
Emisphere Technologies (w/Novartis), Unigene Laboratories
Nasal Spray
CONFIDENTIAL
 2006 Bone Medical Ltd.

18. Competition Parathyroid Hormone Injectable (commercially available)
Forteo (Lilly)
Nasal Spray
Nastech Pharmaceuticals
Oral
Zelos Therapeutics, Emisphere Technologies (w/Novartis), Unigene Laboratories (w/GSK)
Injectable pen device
CONFIDENTIAL
 2006 Bone Medical Ltd.

19. Intellectual Property
Bone Medical has been granted exclusive worldwide rights to oral drug delivery technology in the field of musculoskeletal disease under three patent pending applications for each product:
the use of aromatic alcohols to enhance the uptake of peptides across the small intestine;
pharmaceutical compositions containing certain proportions of aromatic alcohols; and
methods of solubilisation.
Paul
To have mnths on these is very difficult to manage – quarters gives better flexibilty
CONFIDENTIAL
 2006 Bone Medical Ltd.

20. Corporate Secretary Gabriel Chiappini
Key Management
Board of Directors
Corporate Secretary Gabriel Chiappini
Capitalization, governance, BD
Innovate Oncology, Evolve Oncology,
R&D, formulation, development
Proxima
R&D, development, regulatory
Covance, Parke-Davis
Operations, commercialization, BD, development
Mitos Pharmaceuticals, Pfizer, Roche
CONFIDENTIAL
 2006 Bone Medical Ltd.

21. Business Strategy Minimal infrastructure cost and savings
“Hybrid” distribution
& promotion 2 1
Outsource clinical
development
& manufacturing
Minimal infrastructure cost and savings
Corporate / management focus
“Hybrid” distribution
& promotion 2
Partner Capsitonin & Perthoxal (out-license and/or co-promotion)
Rapidity to market and market up-take
Minimize infrastructure build & capital needs
Selectively develop
analogs & acquire
oncology compounds
“Hybrid” distribution
& promotion 2 3
and out-license
compounds in pipeline
Broaden drug pipeline and product offerings
Increase revenues and corporate growth
CONFIDENTIAL
 2006 Bone Medical Ltd.

22. Value Proposition “Two” products in clinical trials:
Capsitonin - Oral calcitonin for “osteoporosis” and “osteoarthritis”
Perthoxal - Oral parathyroid hormone for “osteoporosis”
Rapid regulatory process: potential bioequivalence and/or (b)(2) FDA submissions
Multi-billion dollar market opportunity(s)
New, unique oral formulation technology with robust IP and long patent life
Balanced portfolio between lower-risk drug delivery programs and potential breakthrough future treatments
Experienced management
CONFIDENTIAL
 2006 Bone Medical Ltd.

23. VP Commercial Operations
Contact
Paul Hopper
Executive Chairman
Tel: (San Diego, CA)
Patrick J. Mallon
VP Commercial Operations
Tel: (San Diego, CA)
CONFIDENTIAL
 2006 Bone Medical Ltd.

24. Chief Financial Officer
Contact
Leon Ivory
Director
Tel: (Western Australia)
Ed Daquino
Chief Financial Officer
CONFIDENTIAL
 2006 Bone Medical Ltd.