Ann: Letter to Shareholders from the Board of Ave, page-23

re: Ann: Letter to Shareholders from the Boar... FOTH,

If they weren't aware that Isentress would have such an effect on the market, they were either negligent or given somebody very bad advice from someone very credible.

Progen pulled the PI-88 trial when another company (?BI), with a better drug and more resources targeted the same indication in the US that PI-88 was targeted at. Progen had also previously found finding a partner impossible.

When you start developing a drug it can be very hard to tell what the market will look like 5-10 years later when your drug is ready for late stage trials. Having said that, 1 to 2 years out, you should have a pretty good idea of whether the market is working toward you or away from you.

The board did quite clearly convey the reasons why Isentress is a very different value proposition to ATC. The different mode of action means doctors are much more likely to couple it with other drugs on the market in difficult to treat populations. Combo's of drugs with different modes of action are almost always better than combo's of drugs with similar modes of action.

Again, I think ATC is pretty much finished. If shareholders have a bone of contention, it should be that Avexa didn't kill it sooner and that they appear to have raised more money than they needed to when they knew the drug was in trouble.

Cheers,

Bob