Ann: Letter to Shareholders, page-37

Shakesy,
Sorry the comment was not meant to be negative just an observation after reading the letter. With all the new faces appearing, people flying back and forth to the US, attending conferences etc it will all cost money. Previously Dr T etc were doing it on the smell of an oily rag which is no longer the case. RAC's Operational costs are going to increase dramatically which will add to cashburn and increase the potential of a CR unless we can get some deals in the near/medium term. Most of the cash in the bank with the exception of the buyback funds were allocated to RAC programs based on the previous communicated strategic direction. This may be a reason why the buyback stopped?

I think Damo is making the right noises and the star's seem to be alignign however until July, we have very little clarity on timeframes and what programs and the $$ for the programs are still being spent. We also are lacking alot of real news that should have been forthcomming in this half which hopefully will be caught up in the end of quarter / strategic update. Im used to RAC's management providing updates and comms on time (even if said results were unavailable) DR T would always explain why within the previously announced timeframes. At this stage Im not concerned but making an observation.

A new captain has been installed however the true course has yet to be communicated to the passangers.

The Pool