Ann: Daily share buy-back notice - Appendix 3E, page-2

Good to see Buy back continuing at the mid 30s level . In a previous conversation with management aboyt year ago the comment was made that any buy back would be disciplined with the aim of buying shares when they were at least 30% under valued . At these prices I think the discount is closer to 40%. Over the next 12 -24 months the buy back will help decrease shares on issue allowing any Earnings growth to result in an even higher EPS than it otherwise would . A 10% reduction in capital would make a eps of 3.6c approach 4 c per share. An associated expansion in PE due to the earnings growth could see a PE of 14 and a price of 56c . My experience has been when businesses are growing the SP sometimes does very well as it goes up not only because of EPS increases but PE expansion occurs reflecting the improved growth outlook. GAP is not being priced as a growth stock , infact its being priced like a no growth utility . This will change IMO as US expansion flows into the figures . Where funds become available I continue to nibble at 35c