Ann: Response to ASX Query Letter, page-56

AP's approach is DSR. XMENS approach is a somewhat Piezoelectric analog device. But the frequency response is very similar. XMEMS could replace the analog speaker directly which would push into the market quicker. AP needs digital software to drive the DSR. They need a microprocessor to do this.

AP could not do an earbud, because there is no room to put a microprocessor into it. Their only market is the loudspeaker, which XMEMS had announced their version CES Las Vegas last month. Do you think the competitor will wait for AP? Go google it.

Do the end customer care about the technology used behind, them when their ear hearing is similar? It that DSR and analog any different?