Ann: Chairman's and Managing Director's letter to Shareholders, page-12

Key points from the individual releases for FY17:

Hunt/Chairman:

• Streamlined Board and Management Team – cost reduction program
• Improved governance/performance of company
• Working towards a cashflow positive balance sheet IS TOP PRIORITY
• Focus on near-term revenue opportunities
• Committed to invest in technology and people and grow shareholder value

Despain/MD:

• Significant development in technology portfolio
• IOS/Android Apps successfully launched
• XIP (Cloud Services) continues to be developed
• Integrated ADRC with Intel-based gateways/Intel Smart Home (SHDAP)
• Successfully ported ADRC onto STMicro & Telink chipsets
• Continuing progress with porting onto Telink BLE chipsets
• Developed DiscoverBus
• Strong IOT achievements in multiple target markets
• Expects revenue to be generated from 3 main targets
  • Smart Home and Consumer Solutions
  • Smart Buildings & Commercial Solutions
  • Professional Healthcare (main source in 2018)
• Smart Home offers very flexible solutions, easy to use, can be custom-branded
• Focused on selling Smart Home solutions through channel partners/telco’s/property developers
• Shenzen Lenze – developed iPark App with iPark device on sale Dec17 expecting fees per download (secondary source of revenue)
• Strongly believes in the technology and consumer advantages of ADRC/DiscoverBus
• Working with Vital Xense Singapore developing solutions for Data Centres
• JCT Healthcare – immediate revenue/key target market
• Significant transformation/growth of the company from a technology and product-ready perspective
• Positioned to grow revenue strongly over the next 12 months and beyond