Ann: Netlinkz EGM Presentation, page-12

I have checked out some of the differences between cash and revenue with the Net office, which I am sure they would not mind sharing.

They have advised that many of there contracts are on a long term basis. eg 12 months.

When reporting revenue they have to report conservatively. That is on a month by month basis. (Divided the total contract value by the number of months to work out the monthly revenue to report)

The revenue has to be spread over the entire length of the contract.

However when collecting cash they try to collect it as soon as possible.

For this reason the cash received will often exceed the amount of revenue reported in the same period.

Revenue reporting on this basis is more conservative and more reliable than relying on cash reports to see how a company is performing.