Ann: Appendix 3B, page-9

Hi Folks

I cannot help but think of a certain prominent BUD manager - who shall remain nameless - sitting there playing his fiddle whilst Rome burned. The complete inability of BUD management to communicate effectively with the ASX or its shareholders last year that kick-stated the SP slide; the constantly ambiguous ASX announcements that avoided disclosing failure and instead sought to wall-paper over inconvenient news; the failure by BUD management to respond in a timely fashion to a poorly-performing OHM product that cost BUD shareholders somewhere north of 30M; the desperate grab at LIFX when Chinese trading relations ( where LIFX bulbs are manufactured) are now at a decade-low point with the West; coupled with the hubris a certain BUD senior manager displayed towards his retail shareholders at several shareholder meetings in recent times when they sought to hold him to account for the company's failures - means that we are holding a stock with too many shares and too little money to finance the huge debt we took on to capitalise the diversion for OHM's failure. And so we are further diluting our capital further each month or two to pay our way. That is a well-worn path to financial ruin.

The olive-branch of a hopefully 'bumper' Christmas season for LIFX seems like yet another desperate attempt to buy time until the inevitable collapse occurs. What a damn shame. Our future is now tied to coloured-lights. I wonder if during the coming Global recession - which looks to have begun this week - people will be more concerned with keeping their jobs and paying down debt, than madly buying expensive coloured lights for Xmas. Time will tell, but I can no longer see a viable future for this company. I hope I am wrong in this forecast for the sake of the loyal BUD shareholders, who deserve a break.