Ann: Chairman's Address to Shareholders, page-19

I only have a very small shareholding here but thought I'd check out the meeting since the AGM was in the neighbouring suburb and I could share comments with anyone interested in other states!

It was nice to be offered some samples on the Zinc oxide sunscreen and Dr Zinx product on arrival. The first observation I had at the meeting itself was who are these two casually dressed knockabout, jovial characters at the front of the room who looked like they'd been plucked from the nearby Oxley Hotel to head up the meeting. It was the MD and Chairman!

Much of the discussion was about the ultimate goal to be the largest manufacturer of sunscreen in Australia, and the immediate quest to have a purpose built room with all the necessary equipment up and running by January for certified organic / vegan products to be manufactured.

With regard to Alusion, the discussion centred on the fact that ANO just isn't currently in a position to tap the opportunities out there in the current - and other markets - for the product. This is due to the existence of equipment in Perth that is 10+ years old constantly causing maintenance issues. This is being addressed, new technology / equipment is imminent, with the goal to improve efficiency (bottlenecks) and double capacity. I liked the frankness in this communication.

There was a lot of discussion directed to the Nasdaq listing. Comforting was the view of the board that this plan is not a form of retribution toward the ASX. While acknowledging the perplexing treatment the ASX has given ANO, the decision to list in the US is founded more in having a listing presence in ANO's primary market for it's products. The board is of the opinion that the value of the company's assets will subsequently be appreciated more in that market, and additionally a lower corporate tax rate will apply - boosting retained profits to the benefit of shareholders (despite a loss of franking credits - which Lev remarked will probably be abolished in Australia anyway due to the mounting Government debt). Needless to say a Nasdaq listing is no guarantee as it is an onerous task ahead.

While personally I'm happy to maintain a small holding, I came away from the meeting feeling more confident that management are making decisions with a long term view to building a powerful company, and that they do have shareholder interests at the front of their mind.