Ann: Acquisition of Telerhythmics LLC, page-367

Hi All.

The next 4 weeks are key to the company. Forget about the HK and Nasdaq IPOs for now. Market wants to see contracts and cash flow and it needs it now. Based on my estimates, the company only has another 3 odd months of cash left and that's without knowing the details of the Telerhythmics acquisition. Of course Yacov will continue to loan the company money to keep it going. External debt and equity will only be used for acquisitions imo. So coming up we have the next 4c at the end of the month followed by full year result and annual report. So imo the sp will either be significantly higher or lower by the end of the month, not in the high 20s. Lower will be a result of no news on contracts and continual cash burn, there is only so long investors can hang in here. Higher will be a result of increased higher cash flow, contracts and CDFA for the prizma. I'm leaning towards the later due to: Higher and growing cash flow from gmeddx, tele acquisition and product sales. I take comfort in the wording in recent announcements in regards to there ability to meet agreements globally now the factory has CDFA. Emails from the company stating that nothing material has changed when directly questioning the medtell contract and there asx query letter from March. A 100% increase in anticipated production spend in the dec qtr compared to sept. It definitely won't be cash flow positive during the dec qtr, but depending on the Tele acquisition the gap should be closing. Based on how this company releases updates I suspect it will all come at the end of jan with the 4c. So keep in mind this is a small cap start up and we are in these companies to make multiples and with that comes risk. I've done as much research and questioning as I can. I believe the positives outweigh the negatives and hence my long position. The end of jan will be a pivotal date for this company and my investment decision. G13