Ann: La Jolla funding update , page-21

I have not commented for quite a while and as you all know we have to be careful about what we say in these forums.

Never the less I would like to clear up what maybe misconceptions about INT. We are at all times highly conscious of the need to keep the market fully informed on all relevant matters:

· We/INT had initially received confirmation from La Jolla that they would make payment as scheduled, which later turned out not to be the case. There was then a lengthy period of conversation to try and ascertain what the position was. This process was literally only concluded this morning (25 May 2012).

· It could have been very damaging to the company (in terms of possibly exposing us to legal action) by making a public statement about La Jolla, before the matter had been resolved, and which might later turn out to be untrue.

· The company is not dependent for its solvency solely on either the La Jolla financing or the capital raising. That is, the absence of the La Jolla financing at this point is not creating a position of uncertainty over solvency. The Board’s objective has been to secure funding from multiple sources to ensure our risk is minimised.

· In the event that the La Jolla facility does not continue, the company has sufficient time to investigate and secure alternative funding, if required. Whether it is required or not will depend on an ongoing assessment of our cashflow position, and the growth in our embedded networks business. We are conscious of the need to keep a balance between not raising more funding than we need, but also not leaving ourselves too short of working capital.

I hope that this helps subscribers to this page and others.

Simon Kemp