greencap, page-3

GCG is basically an umberella organisation for a number of small firms working in the occupational health/environment/risk manageent area.

Each firm does its own thing with GCG provided a basis for cross-selling and a proxy ASX listing. The directors of GCG have virtually no input into the operations of the sub firms.

For many of the subfirms the joining with GCG was a means of providing the vendors with an exit strategy in the future.

This model does have a built in tension though. If firm ABC feels like they are providing good profits whilst firm XYZ is crap, then logically ABC thinks they might be better off outside the group. Failures of acquisitions dont mean much. GCG may be looking at several small companies at any one time, most will not go ahead, and no mention will be made of the rejected ones.

Neil