afr article today..., page-2

directors report @ 28.02.05 looks good to me?
anyone else with any views?
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MGM WIRELESS LIMITED DIRECTORS' REPORT

Your directors submit their report for the half-year ended 31 December 2004.

DIRECTORS The names of the company’s directors in office during the half-year and until the date of this report are: Mark Fortunatow Mark E Hurd Richard S Sciano

Half YearlyRevenuesDirectors were in office for this entire period unless otherwise stated.

REVIEW OF OPERATIONS \ $-$100,000$200,000$300,000$400,000$500,000$600,000July - Dec2003Jan - June2004July - Dec2004During the period, shareholders approved an issue of shares in lieu of fees to the value of $138,000. As previously reported, during the period, the number of schools that have now licensed MSGU surpassed 100. The company is pleased to report sales improved by 274% to$476,487 as compared to $127,259 for the same period a year ago. Working capital improved 72% to $787,771 as compared to $456,959for the same period a year ago. Cash holdings grew 77% to $667,326 as compared to $376,604 forthe same period a year ago. EBITA (deducting the issue of shares in lieu of fees) was a net loss of$93,545 for the period, an improvement of 160% from $ 243,420 forthe same period a year ago. The consolidated net loss after income tax of the consolidated entity forthe half-year was $332,025 (previous corresponding period: $308,036). Depreciation charges were up 56 % to $100,480 as compared to$64,607 for the same period a year ago.

AUDITOR’S DECLARATION OF INDEPENDENCE A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 in relation to the review for the half-year ended 31 December 2004 is set out on page 12.

Signed in accordance with a resolution of the directors. M Fortunatow, Director Adelaide, 28 February 2005