3rd qtr results, page-10

talking to major intl oil companies Latest news from Oxonica, of interest to ANO holders -

"...The Stagecoach Group adopted the product across their entire UK fleet in 2004/05. Demonstration trials aimed at expanding the business are ongoing with a number of substantial prospective customers in Europe and Asia Pacific"

"...Envirox product trials are continuing in the UK, Philippines, Singapore, Australia and India"

"...Oxonica’s business model consists of developing patent protected product applications, putting appropriate outsource manufacturing arrangements in place and marketing the products to end-users in order to create customer demand and product pull-through"

"... Following the adoption of the product by Stagecoach in 2004, EnviroxTM was successfully rolled-out across their bus fleets in the UK and New Zealand during the first half of 2005. Subsequent to the roll-out, Stagecoach sold their NZ operations to Infratil who have continued to purchase the product"

"...Throughout 2005, the product was incorporated into a premium branded diesel fuel which was launched in a limited number of retail forecourts in the Philippines in March. Resource constraints restricted commercial progress in the region and as a result the Energy division was restructured with Andrew Elphick assuming the role of Business Director for Energy and Stuart Anderson taking on the role of Strategy Director to focus on developing key relationships with major international oil, mining and fuel additive companies. In addition, an Asia Pacific office was set up in Singapore and the local team is being expanded to cover the increased commercial activity"

"...The Energy division is currently focused on a specific trials programme and on securing commercial adoption by blue-chip lead customers to further build the credibility of the product and facilitate the sales cycle. Significant new trials have been initiated in the UK in bus and truck fleets and in February 2006, Rozone, a subsidiary of Rubery Owen, was appointed as exclusive authorised reseller of EnviroxTM in the UK. In addition, a number of trials are continuing in Philippines, Singapore, Australia and India. EnviroxTM was awarded the ICIS Publications Innovation Award for the innovation with the best environmental benefit. These prestigious awards are organised by ICIS Publications, part of the ICIS Group, which is the chemical publishing arm of Reed Business International. The awards were sponsored by Dow Corning which has a strong focus on innovation and R&D as part of its growth strategy. In order to sell EnviroxTM into the United States for on-highway use, a US EPA registration is required. Oxonica Energy made its submission regarding EnviroxTM to the EPA in April 2005. The EPA responded with a request for further data in October 2005 and it is anticipated that this additional data will be submitted to the EPA later this year"