Ann: Quarterly Update & Appendix 4C, page-2

Looks like no one else is going to provide commentary on the Quarterly, so I guess I'll do it.

$1.1 million in cash, at this rate, we can see through about another two and a half quarters before cash becomes an issue, depending on when further R&D rebates are received.

Good summary of what has been achieved including ensuring supply, generating our nonwoven fibre (Nufolium), scale production of Nullarbor, and a R&D rebate. What was new was the success of the human tissue scaffolding project.

The key thing was the outlook for the next 3-6 months. It look s like they have planned for a deal with a clothing manufacturer to be signed within 6 months. It also appears that the nonwoven partnership is on the same time frame.

Overall, I was pleased with the Quarterly.