Ann: Appendix 2A, page-20

Hi Hoyta, very clear and to the point but I doubt it will cut through to the true believers here. ISoftStone told us the China/VIN product is a dud in December when they downgraded their participation in the China JV company from 50% to 20%. JT spun it as positively increasing NETs share and posters seemed to lap it up, lol! The JV has 53 staff with NET now carrying 80% of those costs with no revenue.

Nevertheless, there is a lot of change going on and its an interesting stock to casually follow to see how JT shifts the strategy and finds a way forward. Clever guy actually, most would have folded by now, but it seems there is power in an ASX listing.

My impression is that JT is intending to use the listing as a technology roll-up vehicle. So he has established technology hubs/offices (IoT labs) in four countries (I think), secured funding access of $30m, and made his first acquistion in SSI. So I think there's the model.

SSI he had to pay cash for, meaning they didnt want the overpriced shares and further suggesting VIN is a dud. But nevertheless he has gone and bought some revenue, perhaps expensively, but revenue nonetheless. I think this is why Brett knows the April qtr will show revenue, because its just been acquired and announced. $1.5m p.a. I recall, someone could check, so we'll whether this contributes to entire earnings or there are other VIN sources in the next quarterly.

So my guess is after buying his first lot of revenue with cash, JT will buy further revenue through acquistions and hope at some point the share value comes back, revenue adds up and he can eventually issue shares for further acquisitions and somewhere down the track weave it all together into a tech warehouse business.

Along the way shareholders are getting smashed with dilution and with options going to the funders, so what share of the business retailers end up with may continually be reduced as the bigger players get their cut.

As they build out the strategy, I expect the VIN product will be quietly retired at some without ever having earned anything. (If there was revenue from it anywhere in the future they wouldnt have just done the 2year convertible note and options package for the $30m).

Anyway, shareholders can research the facts here further, but as a casual observer, I think its a technology roll up/acquistion business now, not a China/VIN distributor.

Time will tell.

And yes Bob, I did say months back that 8cents will look good again, but Im pretty sure I said "would" not "could". On its way.