ASX Today, page-421

1.Look at the potential of this deal $70m USD or around $100m AUD in annual revenue.

Apply a low margin of say 30%* - that’s potentially $30m AUD in gross profit with no additional operating expenses.

2.“Alexium has now satisfied the key specifications in terms of both FR performance and garment servicing” - These would have been set by the US military, so they are happy with the product, now it’s making sure the troops are happy wearing it.

3.It’s a limited user evaluation (LUE, or “wear trial”) so a 90 day wear trial probably on a thousand or more participants (I’m guessing here). And I believe the additional weight of the FR treatment was like having an extra quarter or two in your pocket (comment from the Melbourne presentation).

* I’m guessing at the margin here but the FRACU was higher margined and they use the term lower margin for basic uniforms in conjunction with that – Possibly due to the high spec nature of FRACU the margin may be closer to 50% for that product, so 30% may be close for basic uniforms. But I guess