result fy08, page-26

Reason? Because history typically repeats. FY07 Loss $17.3M, FY08 Loss $12.2M, FY09 Loss ?$M. I do no believe that you can confidentally predict that they will continue at Q4 FY08 losses of just $1M per quarter. They have lost so much more for the previous 7 quarters that they will need a few more low loss quarters to convince me.

Anyway, why should they be in a loss situation at all? With the turnover and margin and after 8 years of operation this is simply just not right. As the market leader in longevity, subscriber numbers & turnover they should have figured out a way to make a dollar out of this market by now. That they have not needs answers and they have not provided these.

How low do you think the cash reserve can get to before they need to do another capital raising? My point is that it must be close now. This may be revealed in the Q1 FY09 result if they post one. If they do not then expect the next news to be for the placement.

All we have to go on is recent finacial performance data. ENG was extremely quiet this year up to and after the 3c placement. Lack of communication was very noticeable and this makes shareholders suspicious as was borne out in the FY08 accounts, another massive loss year.

I would say this about ENG, if they can get someone over there to run a knife/machete through unneccesary costs and retain the the client base & revenue then they will have a decent business on their hands. To date this has not been undertaken as much as is needed. Whilst it appears that Q4 FY08 showed improvements we will need to see continued evidence of this. Certainly whilst ever they maintain a staff of some 86 people this will be difficult to achieve.

Also, what investment has been made or forecast to replace the exisiting VOIP backend? No announcments have been made about this. Whilst ever they have this aging backend they are unable to introduce significant new features to the network. Just look at the continual innovation being offered by those VSP's such as MNF & FRE due to the fact that they have a backend that can be upgraded and modified easily.

This business has the potential to really turn around if it can make some hard decisions. Forget what is coming up in the future, this business already has an excellent turnover and margin and should really be adjusting itself to benefit from the exisiting business now and show that it can turn a profit.

In terms of shareprice, it does have some 635M shares on offer, we are seeing continued trading activity based on this fact. The price is swinging between 2-3 cents. The next significant step for the SP is to have it regularly between 3-4c until this time it will remain a 2-3c stock. If financial improvements are made and shareholders can see a turnaround in loss/profit then 5c will surely follow.

Good luck to all holders.