new redflex cameras, page-20

re: us dollar Hill
Hedging was for Comms division only, no hedging for traffic.

Profits are effected by exchange at 2 points

1. Straight translation from US dollars to $A for reporting purposes. So a 10% rise in the $A equals a 10% fall in reported profits which will effect all years including the current one. Reverse also applies with a falling exchange

2. For the US operation all camera's are produced in Australia. Most of the components are probably imported so there could be a cross rates exchange effect. Also the local content of the manufactured camera will get transferred to the us at a higher cost(rising exchange) and thus increase US costs without a change in US revenue resuting in a lower US profit before translation

Anyone going to the AGM tomorrow. I will be there