rising star, page-7

From the April 10 2010 update (http://www.phylogica.com.au/media/PYC-profile-Apr10.pdf)

This overview is worth noting as it is as relevant today as it was a year ago only now many more milestones have been passed and the business model demonstratively proving up in real time.

BOARD OBJECTIVES

? Build a company that will be acquired for in excess of US$200 million over next 24 months
? Focus on completing data set through both internal and external programmes
? Remain opportunistic for strategic M&A to build a complementary suite of technologies that enhances
the capital value of the company for a prospective acquirer
? Building links with internationally recognised investment groups that can see the opportunity to be
involved in Phylogica?s growth strategy

OPPORTUNITY FOR INVESTORS

? At current levels Phylogica is valued at historic lows and well below its international peers
? Significant strategic collaborations that are expected to bear fruit in the next few months
? Significant technical achievements due over the next six months that will add significant value to the
platform
? The underlying potential has only increased over the past 24 months with exciting developments and
milestone achievements
? Phylogica clearly sits in a highly attractive sector for the pharmaceutical/ biotechnology companies
? The Board is aware of what is required to complete the data pack and who to partner with to expedite
the process
? The proprietary nature of the technology and the milestones achieved are competitive
? Opportunity for investors is to generate 10-20X uplift from current levels as the plan is executed
? Consolidation of complementary technologies (affinity maturation, automated screening, delivery technologies etc) together with Phylogica?s drug discovery engine offers an
opportunity to create a significant, internationally valuable company.

I believe old news is good news too, particularly when a so-called 'corporate vision' begins to be realised.

It is interesting that that a cornerstone investor is ditching stock as it's business model is no longer viable. It provides great opportunity for sub-8 cent entry and yet scares off short-term investors who want to see a 'nice chart'.

The imperviousness of the SP to a 'good news month' is testament to this. My sense is the 18-month sell-down strategy (with or without the take-up of the $1M 4cent conversion is creating a coiled spring under the SP.

Frustrating as the 'red' appears in my holdings I am a firm and patient holder of PYC because management, product and business model are all sound.

The company as a whole is undervalued by a factor of 5X IMHO, at this time, with plenty of scope for steady growth for years after this re-valuation is reflected in the SP.

PatrickM