Ann: Letter to Shareholders, page-2

I just wrote to Deborah Rathgen and Graeme Kaufman expressing my great disappointment on the U.S capital raising. I noted that one of the board has had previous dealing with Roth Capital and asked what due diligence the board had undertaken over the choice of Roth and the pricing.

I also noted that the loss in market value of the company exceeded the amount raised by several times due to the discount provided not only to the current market price but the company's value (as assessed by Bell Potter).