abc news...unis plan, page-17

quarterly...cabe

Well, not the greatest result as far as revenue to the end of June, but then we were aware that a lot of the announced deals cash only started coming in July ... still, not too bad if you look at the progress and the stuff in the pipeline. Now is the time for them to deliver ...

The new facets to the pulmo platform is very interesting and welcome, and may be what some of the whispers have been about. Also the fact that 20% is in UK hands suggests where the growth is coming from.

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The final quarter of the 2005 / 06 year was another period of significant advancement. The highlights for the quarter may be summarised as follows:

�� The commencement of the consultancy contracts with the UK Royal College of Surgeons and, post completion of the quarter, with Torbay Hospital in Devon, England;

�� Further simulator sales in Australia, particularly through Queensland Health; �� Establishment of Simulator Service and Maintenance centres in U.K. and Hong Kong;

�� The official launch of Medic Vision’s own Epidural Simulator and receiving the Innovic Award for Innovation for this product;

�� The commencement of work on the company’s Temporal Bone Simulator;

�� Receipt by Pulmosonix of additional funding via an AusIndustry Commercial Ready Grant. It is also on track with the further development of the Pulmoscreen product – a novel, non-invasive device for the detection of emphysema;

�� Additional novel applications for the Airway Clear platform are currently being reviewed, as it now appears that there are significantly broader applications for this device than were targeted originally. Additional work is currently being undertaken which is aiming to accelerate the commercialisation of some of these applications.

Whilst actual receipts from customers were lower than previous quarters this was due to the fact that the actual sales occurred towards the end of the quarter resulting in payments not being received until the following quarter. Working capital in the quarter includes work in progress on various projects together with continuing product development work on the Medic Vision and Pulmosonix products.

Given these timing differences, operations for the quarter were in line with expectations. Post completion of this quarter the Company received significant funds from several completed projects and simulator sales, as well as from the Commercial Ready grant. These funds improved the cash balances during July.

In addition, during July the Company finalised a placement managed by Premier’s UK broker and NOMAD, Corporate Synergy to raise £440,000 (approx. $1.1m) to clients of Corporate Synergy. This was a pleasing result as there is increasing interest in the Company in the UK especially as Medic Vision’s UK activities increase in scope. Following this placement approx. 20% of the capital (undiluted) of Premier will be held by a range of investors in the UK.

The new financial year has commenced positively with a strong pipeline of sales opportunities in Australia, U.K. and Asia. Following the expenditure on additional resources, particularly sales and marketing and product development personnel the Company is expecting to see the benefits of this investment flow through during this financial year.