Ann: Appendix 4C - quarterly , page-4

A few comments on the Quarterly report

Point 5: In relation to the group coming from the Philippines. I think we have heard it all before.
Does anyone remember the company that was ‘lined up’ to take PPY’s process to Vietnam? They even funded the construction of the Walkamin factory. No sign of them now! What about Martinique? That was a fantastic opportunity for PPY. Hayot was ready to pay 1 million dollars to licence PPY’s technology! It seems Hayot was so under impressed with PPY’s progress that he designed and built his own and now has the only successful banana stem veneering business in the world!

Point 8: The announcement states that the company has decided not to ‘release’ a veneering machine to Egypt. This makes it sound like they have a spare machine in stock! From what I have read on HotCopper, the only complete machine they have is the one at Walkamin. Captain Allcock, can you comment on this please? I seem to recall you saying that the two new machines from China are only half built.

Point 9: the Fraundhofer Institute. Developing a successful fibre board sounds great. However I am confused reading the announcement. It seems in the first paragraph they said that PPY’s joint venture: “commissioned the Fraunhofer Institute in Germany to develop the formula to make certifiable industrial-use panel board from banana fibre” but in the second paragraph they said “We expect this project to deliver an independent verification of the formula and the costs of producing panel board from banana fibre for certifiable industrial use worldwide.”

Firstly, If the Fraundhofer Institute develop the formula, how can they independently verify it?

Secondly, in the first paragraph, don’t they mean ‘a’ formula rather than 'the' formula, or are they trying to imply that the formula used in PPY’s failed attempts at creating fibre board, is the formula that the institute is going to develop and test? They have certainly left a lot of wriggle room in this announcement!

Point 2: They might have delayed payment of directors fees, but they are certainly giving them some nice world tours at PPY’s expense!