Ann: VDM Company Update , page-29

There would be no Client in Australia that will not insist on a performance bond for contract of any significance, particuluarly in the mining sector. If anyone thinks there is, I challenge you to name them.

Quite simply, without a performance security facility (or in its absence a bucket load of cash), VDM cannot effectively bid work, or accept new contracts. I would also be surprised if VMD's current Clients are not getting very nervous with respect to the validity of the securities they have in place.

RICH - what is your expected timeframe for the resolution of the BHP litigation?