Ann: Shareholder Update , page-13

Hi Tony,
Upon reflection, I realised that the Big Picture is the discovery and progression of "cell-specific and cell-penetrating phylomer peptide conjugates". Its a bigger story than the individual progress made in relation to either the Janssen or Roche collaborations even though they are both integral to successful outcomes.

The reference to Roche and Janssen - by Wilson - is used to highlight the fact that phylomers can be used to target specific cell types and deliver large biological payloads across cell membranes. We know that several deals are being currently negotiated around the intracellular space where Big Pharma are looking to utilise phylomers as drug conjugates.

Move to the table at the end of the Update which lists four Value-Adding Technology Milestones. The first technology milestone is particularly relevant to the discussion re: Endosomal Escape Trap. The 'successful findings' from Roche and 'encouraging progress' of Janssen is being further enhanced in technology developments with an estimated validation date in Q4 2013. Roche and Janssen are collaborators in this major research project which could dramatically alter the druggable landscape. All others will have to catch up.