Ann: Appendix 4C - quarterly, page-44

I first bought SMN shares in 2004, After a couple of disappointing years I threw them in the sock draw and forgot about them till about 2009. Regarding your question longonly SMN started conducting trials initially with the military. ADF - Blackhawk helicopters, RAF- Seaking helicopters and the Pakistan Airforce to name a few. Then they had agreements with Boeing and Airbus and trials with smaller companies like Embraer and Bombardier Aerospace. Back when Mark Vellacott was CEO there were promises that revenue would start flowing after trials, it never materialised. If you're interested just search the announcements on the ASX website.

Why didn't the trials result in big orders and revenue? The aviation industry is a really tough nut to crack. It takes years and thorough testing to ensure it's safe. There also needs to be a really strong case that adding weight, complexity and costs to the manufacture of aircraft will result in lower operating costs. What's different now? I think being partnered with Sandia makes a massive difference. Approval by respective aviation agencies like the FAA is crucial. Also after numerous installations in different aircraft over the years CVM has been proven to be effective.