Universal Biosensors : Retail Entitlement Offer Booklet

Universal Biosensors, Inc. ARBN 121 559 993

1 Corporate Avenue Rowville Victoria 3178 Australia

Telephone [phone] Facsimile [phone]

[e-mail]

29 April 2022

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO ANY US PERSON

RETAIL ENTITLEMENT OFFER BOOKLET

Universal Biosensors, Inc. (ASX: UBI) (Company) advises that, in respect of its capital raising announced on Wednesday, 20 April 2022, the fully underwritten 1 for 6.85 non-renounceable entitlement offer of CHESS depositary interests over fully paid ordinary shares in the Company (Entitlement Offer) opens today.

Enclosed is a copy of the Offer Booklet in respect of the Entitlement Offer.

The Company also advises that it will today complete dispatch of the Offer Booklet (including personalized entitlement and acceptance forms) to Eligible Securityholders.

Eligible Securityholders are encouraged to carefully read the Offer Booklet for further details relating to the Entitlement Offer.

The Entitlement Offer will close at 5:00pm on Friday, 20 May 2022.

Salesh Balak

Chief Financial Officer and Company Secretary

Announcement authorized by the Board of Directors of Universal Biosensors, Inc.

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States, its possessions and territories or the District of Columbia , and may not be distributed, reproduced, published or released, in whole or in part, directly or indirectly, in the United States, its possessions and territories or the District of Columbia or in any jurisdiction in which such an offer would be illegal, or to any U.S. Person (as defined in Regulation S under the United States Securities Act of 1933, as amended (U.S. Securities Act)), or to any resident of the United States, its possessions and territories or the District of Columbia or to any other person to whom, such an offer would be illegal. The CDIs to be offered and sold have not been and will not be registered under the U.S. Securities Act, or under the securities laws

of any state or other jurisdiction of the United States. Accordingly, the CDIs may not be offered or sold, directly or indirectly, in or into the United States, its possessions and territories or the District of Columbia or to a U.S. Person or a resident of the United States, possessions and territories or the District of Columbia except in compliance with the registration requirements of the U.S. Securities Act and any other applicable securities laws of any state or other jurisdiction of the United States (which the Company has no obligation or intention to do or procure) or pursuant to an exemption from, or in a transaction exempt from or not subject to, such registration requirements and any other applicable securities laws.

Notice to U.S. persons: restriction on purchasing CDIs

Universal Biosensors is incorporated in the State of Delaware and its securities have not been registered under the U.S. Securities Act of 1933 or the laws of any state or other jurisdiction in the United States. Trading of Universal Biosensors CHESS Depositary Interests ("CDIs") on the Australian Securities Exchange ("ASX") is not subject to the registration requirements of the U.S. Securities Act in reliance on Regulation S under the U.S. Securities Act and a related 'no action' letter issued by the U.S. Securities and Exchange Commission to the ASX in 2000. As a result, the CDIs are "restricted securities" (as defined in Rule 144 under the U.S. Securities Act) and may not be sold or otherwise transferred into the US or to a US person except in transactions exempt from, or not subject to, the registration requirements of the U.S. Securities Act. For instance, U.S. persons who are qualified institutional buyers ("QIBs", as defined in Rule 144A under the U.S. Securities Act) may purchase CDIs in reliance on the exemption from registration provided by Rule 144A. To enforce the transfer restrictions, the CDIs bear a "FOR US" designation on the ASX. This designation restricts CDIs from being purchased by U.S. persons except those who are QIBs. However, the CDIs may be freely transferred on the ASX to any person other than a US person. In addition, hedging transactions with regard to the CDIs may only be conducted in compliance with the U.S. Securities Act.

The offer and sale of the New CDIs and the Additional CDIs (as those terms are defined in the Offer Booklet), and the shares of the Company's common stock underlying any such New CDIs or Additional CDIs (collectively, the "Securities"), have not been, and will not be, registered under the U.S. Securities Act or the securities laws of any state or other jurisdiction of the United States, its possessions and territories, or any state or the District of Columbia. Offers and sales of Securities to investors outside the United States, its possessions and territories, or any state or the District of Columbia (the "United States"), that are not, and are not acting for the account or benefit of, U.S. Persons in the Offer are being conducted in a manner exempt from registration under the U.S. Securities Act pursuant to Regulation S under the U.S. Securities Act, and the Securities will be "restricted securities" for purposes of Rule 144 under the U.S. Securities Act. Accordingly, the Securities may not be offered or sold in the United States or to, or for the account or benefit of, any U.S. Person except in compliance with the registration requirements of the U.S. Securities Act and any other applicable securities laws of any state or other jurisdiction of the United States or pursuant to an exemption from, or in a transaction exempt from or not subject to such registration requirements and any other applicable securities laws. No holder of Securities will have the right to require the Company to register any of the Securities under the U.S. Securities Act. Hedging transactions involving the Securities may not be conducted unless in compliance with the U.S. Securities Act and applicable United States securities laws.

Forward Looking Statements and Risks

This announcement contains certain forward-looking or hypothetical statements. The statements contained in this presentation that are not purely historical are forward-looking statements within the meaning of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements in this presentation include statements regarding our expectations, beliefs, hopes, intentions or strategies. You can identify these forward-looking statements by the fact that they use words such as "anticipate", "estimate", "expect", "project", "should", "can", "could", "propose", "potential", "outlook", "future", "illustration", "predict", "will", "would", "intend", "plan", "believe", "target", "may", "assume" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. All forward-looking statements included in this presentation are based upon information available to us as of the date hereof, and are based on assumptions and contingencies that are subject to change without notice and involve known and unknown risks and uncertainties and other factors are beyond the control of the Company, its directors and management. Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Actual results, performance or achievements may differ materially from those expressed or implied in such statements and any projections and assumptions on which these statements are based. Readers are cautioned not to place undue reliance on forward-looking statements and except as required by law or regulation, none of the Company, its representatives or advisers, and we assume no obligation to update any such forward-looking statement as a result of new information, future events or otherwise. No representation or warranty, express or implied, is made as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in this Presentation. Our actual results could differ materially from our current expectations. All forward-looking statements are qualified in their entirety by the cautionary statements that UBI makes from time to time in its filings with the United States Securities and Exchange Commission and public communications. The Company is subject to a number of risks which may result in our actual results differing materially from our current expectations. These risks may be out of the control of, and unknown to, UBI and its officers, employees, advisors or agents. For a summary of key risks, refer to Appendix B of the Investor Presentation released to the ASX on Wednesday, 20 April 2022, and the Company's most recent Form 10-K filed with the United States Securities and Exchange Commission and the Australian Securities Exchange.

About Universal Biosensors

Universal Biosensors, founded in 2001, specialises in the design and development of electrochemical cells (strips) used in conjunction with point of use devices that are used in various industries such as healthcare (point of care), wine, food, and agriculture. UBI's ambition is to build a multi product stable of biosensors in large markets which generate ongoing revenue streams. For additional information regarding Universal Biosensors, Inc., refer to:http://www.universalbiosensors.com.

UNIVERSAL BIOSENSORS, INC.

ARBN 121 559 993

Entitlement Offer

1 for 6.85 pro rata non-renounceable entitlement offer by Universal Biosensors, Inc. of CHESS depositary interests over new fully paid ordinary shares at A$0.77 per CDI

Entitlement Offer closes: 5.00pm (AEST) on 20 May 2022

If you are an Eligible Securityholder, this is an important document that requires your immediate attention. It should be read in its entirety. This document is not a prospectus under the Corporations Act 2001 (Cth) and has not been lodged with the Australian Securities and Investments Commission. You should consult your stockbroker, solicitor, accountant or other professional adviser if you have any questions. You can also contact the Company on [phone] or the Share Registry on 1300 737 760 (from within Australia) or [phone] (from outside Australia) at any time between 8.30am and 5.30pm (AEST), Monday to Friday during the Entitlement Offer Period.

The Entitlement Offer is fully underwritten by Viburnum Funds Pty Ltd, an entity associated with Mr Craig Coleman (the Chairman, and a related party, of the Company).

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO ANY U.S. PERSON

L344231843.17

UNIVERSAL BIOSENSORS, INC.

For personal use only

ENTITLEMENT OFFER

IMPORTANT NOTICES

This Offer Booklet is dated 29 April 2022 and relates to the Entitlement Offer by Universal Biosensors, Inc. (ARBN 121 559 993) (UBI or the Company) of New CDIs to raise approximately A$20 million. Capitalised terms in this section have the meaning given to them in this Offer Booklet.

This Offer Booklet has been issued by the Company. The Entitlement Offer is being made in accordance with section 708AA of the Corporations Act (as notionally modified by ASIC Corporations (Non-Traditional Rights Issues) Instrument 2016/84) and ASIC Corporations (Disregarding Technical Relief) Instrument 2016/73), which allows entitlement offers to be made to retail investors without a prospectus or other disclosure document. This Offer Booklet does not contain all of the information which an investor may require to make an informed investment decision, nor does it contain all the information which would be required to be disclosed in a prospectus. The information in this Offer Booklet does not constitute financial product advice and does not take into account your investment objectives, financial situation or particular needs.

This Offer Booklet should be read in its entirety (including the accompanying Entitlement and Acceptance Form) before you decide to participate in the Entitlement Offer. This Offer Booklet is not a prospectus under the Corporations Act and has not been, and will not be, lodged with ASIC. In particular you should consider the risk factors that could affect the performance of UBI or the value of an investment in UBI. Please see "Key Risks" section of the Investor Presentation (see Section 4 of this Offer Booklet).

Documents relevant to the Entitlement Offer

Before deciding to invest in New CDIs and any Additional CDIs, you should carefully consider this Offer Booklet (including the Investor Presentation); UBI's Certificate of Incorporation and UBI's Bylaws, which outline the rights of New CDIs and Additional CDIs; and UBI's continuous disclosure notices lodged with ASX (available atwww.asx.com.au).

By returning an Entitlement and Acceptance Form or otherwise paying for your New CDIs and any Additional CDIs through BPAY®1 in accordance with the instructions on the Entitlement and Acceptance Form, you acknowledge that you have read this Offer Booklet (including the Investor Presentation) and you have acted in accordance with and agree to the terms of the Entitlement Offer detailed in this Offer Booklet.

No overseas offering

This Offer Booklet and the accompanying Entitlement and Acceptance Form do not constitute an offer or invitation in any place in which, or to any person to whom, it would not be lawful to make such an offer or invitation. In particular, this Offer Booklet does not constitute an offer to Ineligible Securityholders and may not be distributed in the United States, its possessions and territories, any state thereof or the District of Columbia (United States) or to any U.S. Person, as defined in Regulation S (Regulation S) promulgated under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act), or any resident of the United States.

This Offer Booklet is not to be distributed in, and no offer of New CDIs and Additional CDIs is to be made under the Entitlement Offer, in countries other than Australia and New Zealand, unless UBI, in its discretion, is satisfied that the Entitlement Offer may be made in compliance with all applicable laws.

No action has been taken to register or qualify the Entitlement Offer, the Entitlements or the New CDIs and any Additional CDIs, or otherwise permit the public offering of the New CDIs and Additional CDIs, in any jurisdiction other than Australia and

New Zealand.

The distribution of this Offer Booklet (including an electronic copy) outside Australia and New Zealand is restricted by law. If you come into possession of the information in this Offer Booklet, you should observe such restrictions and should seek your own advice on such restrictions. Any non-compliance with these restrictions may contravene applicable securities laws.

1 ® registered to BPAY Pty Ltd ABN 69 079 137 518.

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Foreign exchange control restrictions or restrictions on remittingfunds from your country to Australia may apply. Your application for New CDIs and any Additional CDIs is subject to all requisite authorities and clearances being obtained for UBI to lawfully receive your application monies.

United States

None of the information in this Offer Booklet or the Entitlement and Acceptance Form accompanying it constitutes an offer to sell, or a solicitation of an offer to buy, any securities in the United States or in any other jurisdiction in which such an offer would be illegal or to, or for the account or benefit of, any U.S. Person, as defined in Regulation S (US Person) or resident of the United States. Neither this Offer Booklet nor the Entitlement and Acceptance Form may not be released or distributed in the United States or to any US Person or any resident of the United States.

The Entitlements, the New CDIs and the Additional CDIs have not been, and will not be, registered under the U.S. Securities Act or under the laws of any state or other jurisdiction in the United States. Accordingly, the Entitlements may not be issued to, taken up or exercised by, and the New CDIs and the Additional CDIs may not be offered, sold, delivered or distributed directly or indirectly, to US Persons or persons who are acting for the account or benefit of a US Person (to the extent such persons hold such securities and are acting for the account or benefit of a person in the United States), except (A) (1) in "offshore transactions" (as defined in Rule 902(h) under the U.S. Securities Act), in reliance on Regulation S under the U.S. Securities Act, (2) in transactions exempt, from or not subject to, the registration requirements of the U.S. Securities Act and applicable securities laws of any state or other jurisdiction of the United States, (3) pursuant to an effective registration statement under the U.S. Securities Act and (B) in accordance with all applicable securities laws of the United States. . Resales or reoffers of the New CDIs and the Additional CDIs may not be made to, or for the account or benefit of, any US Person during the Distribution Compliance Period, and any New CDIs or Additional CDIs may be reoffered, resold, distributed or delivered only (A) (1) in "offshore transactions" (as defined in Rule 902(h) under the U.S. Securities Act), in reliance on Regulation S under the U.S. Securities Act, (2) to a person whom the seller and any person acting on its behalf reasonably believes is a "qualified institutional buyer" (QIB) within the meaning of Rule 144A promulgated under the U.S. Securities Act (Rule 144A), or (3) in transactions exempt from, or not subject to, the registration requirements of the U.S. Securities Act and applicable securities laws of any state or other jurisdiction of the United States and (B) in accordance with all applicable securities laws of the United States. A holder of New CDIs or Additional CDIs may not deposit or cause to be deposited such New CDIs or Additional CDIs, or the shares of UBI's common stock underlying such New CDIs or Additional CDIs, into any unrestricted depositary receipt facility established or maintained by a depositary bank relating, unless or until the New CDIs and Additional CDIs are no longer deemed restricted securities within the meaning of Rule 144(a)(3) under the U.S. Securities Act. No representation can be made as to the availability of the exemption provided by Rule 144 for resales of New CDIs or Additional CDIs. Hedging transactions involving any New CDIs or any Additional CDIs may not be conducted unless in compliance with the U.S. Securities Act.

By accepting the Entitlements or returning an Entitlement and Acceptance Form or otherwise paying for your New CDIs or any Additional CDIs, you represent and warrant that you (a) are not a US Person (as defined in Regulation S) and (b) are not holding the Entitlements, New CDIs or Additional CDIs for the account or benefit of any US Person.

In order to enforce the above transfer restrictions whilst ensuring that Eligible Securityholders can still trade their New CDIs and any Additional CDIs on ASX, the New CDIs and any Additional CDIs will bear a "FOR US" designation on ASX. As a result of the imposition of the "FOR US" designation, all holders of New CDIs and any Additional CDIs in UBI will be restricted from

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