First Day of Dealings on AIM

**NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE SUCH RELEASE OR PUBLICATION WOULD BE UNLAWFUL**

This announcement is an advertisement and not a prospectus or an admission document and does not constitute or form part of, any offer, invitation or promotion to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefor.

Recipients of this announcement who are considering acquiring shares following the publication of the admission document ("Admission Document"), which has been published by Rex Bionics plc ("Rex Bionics" or the "Company") in connection with the placing of ordinary shares in the Company ("Placing") and admission of the ordinary shares in the Company ("Ordinary Shares") to trading on AIM ("Admission"), are reminded that any such acquisition must be made on the basis of the information contained in the Admission Document which may be different to the information contained in this announcement.

 8 May 2014

 Rex Bionics plc

("Rex Bionics" or the "Company")

First Day of Dealings on AIM

Rex Bionics plc, formerly Union MedTech plc, which develops and markets hands-free robotic exoskeletons for use by wheelchair users, is delighted to announce its flotation today on the London Stock Exchange's AIM market. This follows a successful placing by Oriel Securities Limited, raising £10 million gross (£8.8 million net) and giving the Company a market capitalisation of £25.7 million.

Trading of shares will begin at 8.00am today under the ticker symbol "RXB" and the ISIN number GB00BLRLQM66. Oriel Securities Limited will act as NOMAD and adviser to Rex Bionics.

Jeremy Curnock Cook, Chief Executive Officer of Rex Bionics plc, said: "We are delighted to have joined the AIM market today. The successful completion of this transaction will enable us to expand our sales and marketing capabilities in the build up towards full international launch of REX, our hands free robotic exoskeleton, later this year. The money raised will also allow us to expand our product range with the development of our next generation product, REX 3. 

"We are confident that the business will continue to expand and grow as we bring our innovative REX products to the international market, delivering value to shareholders. We would like to welcome our new investors and look forward to updating them on our progress as we continue to grow the REX brand."

Admission Statistics

Placing Price: 180p per Ordinary Share

Number of Ordinary Shares in issue: 14,289,360

Market Capitalisation at the Placing Price: £25.7 million

Total number of Placing Shares: 5,555,556

Gross proceeds of the Placing: £10.0 million

Estimated net proceeds of the Placing: £8.8 million

Placing Shares as a percentage of the Enlarged Share Capital: 38.9%

For further information please contact:

Rex Bionics Plc

Jeremy Curnock Cook, Chief Executive Officer

+44 (0)7810 866386

Peter Worrall, Chief Financial Officer

+44 (0)1428 645416

Oriel Securities Limited (NOMAD and Broker)

Juliet Thompson/Jonathan Senior

+44 (0) 20 7710 7600

Consilium Strategic Communications

Mary-Jane Elliott / Emma Thompson / Jessica Hodgson / Lindsey Neville

[email protected]

+44 (0) 203 709 5700

Market Opportunity

The Directors believe a significant market opportunity exists to provide wheelchair users with a device that allows them to stand and walk autonomously without the aid of crutches or a walking frame, both for their personal use as well as for rehabilitation:

Strategy

· Rex Bionics is a developer and manufacturer of hands-free robotic exoskeletons for use by wheelchair users

· Rex Bionics will initially target the spinal cord injury market in the US and Europe

· The Company's key focus will be the rehabilitation market

· It was estimated that in the US alone there were approximately 2.8 million wheelchair users and 5.6 million people living with some degree of paralysis. Annually it is estimated that there are 12,000 new cases of spinal cord injury each year in the US with a similar number of SCI cases in Europe

· The estimated cost to the US healthcare industry of spinal cord injury is approximately US$40.5 billion

· Rex Bionics is working on the next generation of the product, REX 3, which it plans to be lighter, faster and more accessible to its market

Benefits of REX and Competitive Advantages

· REX is believed to be the world's only commercially available self-supporting, independently controlled robotic exoskeleton, without the need to use crutches or a walking frame

· The Directors believe that there are significant health benefits associated with enabling the user to stand and walk

· REX Rehab is registered with the Food and Drug Administration for sale in the USA and has a CE mark in Europe

· REX Personal enables users to navigate stairs and slopes safely in a controlled environment (i.e. compliant with common, accessible building standards) and has a CE mark in Europe

Use of Proceeds

· Sales and marketing, including the launch of REX Rehab and the establishment of regional sales operations

· Scale up of manufacturing operations in Auckland, including a move to a new facility and capital expenditure

· REX 3 research and development program, including capital expenditure

· General and administrative expenses

· Transaction costs

· Increase in working capital

About Rex Bionics

Rex Bionics (AIM: RXB) is an AIM-listed developer and manufacturer of REX products, hands-free robotic exoskeletons for use by people with mobility impairments. Founded in Auckland, New Zealand by two robotics engineers with first-hand experience of wheelchair users and their needs, Rex Bionics focuses on producing products designed to enable wheelchair users to stand and walk autonomously without the need for crutches or supports and is the only company to mass produce hands-free walking devices for wheelchair users. Rex Bionics' marketed products: REX Rehab and REX Personal, can be used by people with complete spinal cord injury, but also by a much broader potential customer base, including people with multiple sclerosis and muscular dystrophy. In May 2014, Rex Bionics joined AIM with a fundraising of £10 million (gross) to scale up production, distribution and marketing internationally, in order to support growing demand for both REX products as well as developing the next generation of REX devices, REX 3.

www.rexbionics.com 

This announcement is not for publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, New Zealand, Canada, Japan or any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein should inform themselves of and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement is not directed to or intended for use by, distribution or transfer, either directly or indirectly to, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, transfer, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. In particular, neither this announcement nor any copy of it may be sent, or taken, transmitted or distributed, directly or indirectly, in or into Australia, New Zealand, Canada, Japan, or the United States (including its territories and dependencies, any state of the United States and the District of Columbia) or to any resident of Australia, New Zealand, Canada, Japan or the United States. This announcement is only being made to persons outside of the United States in reliance on exemptions from the US Securities Act of 1933, as amended (the "Securities Act").

This announcement does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein or as may be offered following this announcement have not been, and will not be, registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction of the United States or under the applicable securities laws of Australia, New Zealand, Canada or Japan. Subject to certain exceptions, the securities referred to herein may not be offered or sold in the United States, Australia, New Zealand, Canada, or to or for the account or benefit of any national, resident or citizen of Australia, New Zealand, Canada, or Japan, or any person located in the United States. No public offering of the securities will take place in the United States. Neither the US Securities and Exchange Commission nor any securities regulatory authority of any state or other jurisdiction of the United States has approved or disapproved of an investment in the securities or passed comment on the accuracy or adequacy of the contents of this announcement. Any representation to the contrary is a criminal offence in the United States. The offer of the securities and the distribution of this announcement in other jurisdictions may be restricted by law and the persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions.

This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives) are forward-looking statements.

Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These factors include but are not limited to those described in the Admission Document.