Revenue Guidance

The directors of Pro Medicus Limited advise that the revenue for the six months ending 31 December 2003 will be lower than expected due to the reversal of $1.2 million of previously accrued income as a result of deferral of a client order.

In June 2002, the company entered into a Heads of Agreement (HoA) with Mayne Health Diagnostic Imaging (Mayne), a major radiology provider. As part of the HoA, Mayne was to standardise its national IT network by using the full suite of Pro Medicus' medical software and e-health products including a significant "roll-out" of the company's appointments programme.

On the basis of the HoA, Pro Medicus implemented and was paid by Mayne for a range of products and services covered by the agreement.

Mayne has now advised the company, citing internal, non Pro Medicus related reasons, that it has decided to defer final implementation of the Appointments system beyond 30 June 2004.

The directors, as a matter of appropriate and prudent financial reporting, have elected to fully reverse all accrued revenue for this Appointment system work pending final resolution of the deferral. This is despite having completed a substantial amount of work on the project during which standard revenue recognition guidelines were applied.

Based on assurances from senior Mayne executives, the company has a reasonable expectation that the Appointments project will be completed in the future. At such time the full value of the project, including the balance which has yet to be brought to account, will be booked as income.

For more information:

Dr Sam Hupert Managing Director Pro Medicus Limited	Mike Feehan Monsoon Communications Phone: + 61 3 9620 3333
Email: hupert@promedicus.com.au Phone: +61 3 9429 8800 Facsimile: +61 3 9429 9544