Ann: Appendix 4C - quarterly-ICQ.AX, page-9

Although I agree that CAR at some stage will try to takeover ICQ, CAR is a different animal to REA. REA has always been tight with its dividends, never paying anything more than 50% of earnings. This enabled them to build up a war chest of cash and with a very complicated bid, they were able to takeover IPP without borrowing. CAR on the other hand has always paid about 80% of earnings as dividends and hence has no war chest. Of recent years to fund its expansion it has been a borrower. At the end of last FY it had borrowings of over $200 million. REA has none.

On this basis, to takeover ICQ, CAR would have to have a cash raising or borrow more (or perhaps offer a share swap). That might make them a bit slower than REA to launch a bid. If so, that will be of great benefit to ICQ shareholders as we might get some benefit from the huge potential of ICQ. Company management has forecast overall break even in 18 months time. If CAR has not moved by then, the share price might escape them and we the shareholders will reap the benefit. I am sure there are a number of ex IPP shareholders like myself that have moved into ICQ hoping to have their day in the sun, following the opportunity that was denied them in the IPP/REA takeover.