Paul David McCarthy was due to contest a charge of wilful exposure on Wednesday in Griffith Local Court but, much to the surprise of court officials, it was announced he died of septicaemia in late July.

The 63-year-old was in the midst of serving an 18-month good-behaviour bond when he was arrested for allegedly exposing himself on May 12.

In 2009, McCarthy was convicted of possessing and disseminating child pornography and sentenced to eight months' jail with a non-parole period of three months.

He appealed to the Griffith District Court and while his conviction was upheld, the judge quashed the jail sentence and placed him on the bond.

McCarthy was arrested in 2008 after police uncovered a bizarre shrine in his bedroom comprising hundreds of images depicting naked children.

He had created it by cutting the faces of children out of photographs and pasting them onto pictures of naked people taken from various sources, including naturalist magazines.

In sentencing McCarthy back in May last year, magistrate Jeff Hogg described the crime "as most unusual" and said the offender's lack of contrition was a concern.

"It's fair to say that this matter involving child pornography is a most unusual type of that offence," Mr Hogg said.

"The most disturbing part of this case is perhaps the lack of contrition Mr McCarthy shows for the crimes he has committed."