arup, page-5

Hi RBA,

What we don't know at this stage is the 'specific deliverables'.

I'd be very hesitant to put 'ARUP' and 'investor' in the same category. They appear to be strictly a consultancy firm or subject matter experts and investment would be a totally different game for them.

However this partnership is clearly strategic designed to benefit both parties so a profit share arrangement is a very distinct possibility and something you would assume ARUP to ask for if they feel they are capable of bringing parties together on behalf of ESI.

Alternatively the 'risk share' could simply be comparable to when you build a house and you pay the builder over agreed stages?

Are ARUP privy to information the market doesn't know yet? Most likely....what we don't know is how far down the track the BFS is and whether a deal or deals are hinging on BFS completion. Will an MOU develpment be anned before July 2008 to bolster the SP? (Fortrend and finance)

I think the real question right now is investment/finance and what direction ESI decides to take to bridge the gap between commercialisation and their first cashflow stream.

The low SP dilutes Fortrend option somewhat so this maybe unattractive to management. The quarterly states 'support from major shareholders' implying they will inject cash if need be. IMO ESI is at a perfect stage now where bigger guys (instos) should be looking to invest as an early entry point.

Being the smaller guys we wait patiently.

Cheers,