Ann: Appendix 3G, page-7

Options have an intrinsic value defined by the difference between the strike price and the share price. They also give the right to gain ownership of shares at a price which may not be accessible in the future. This does not seem to me to 'have no value'.

One would suggest that the company would not take this action, at this time, without due cause and consideration. I would hardly think that they did it thinking that the options would be worthless.

I would suggest that the company took this action now so that they had the ability to hand over these options a a reward in the future with an associated strike price which suitably rewards the recipient.

The timing would suggest that they may consider 'now' as their last chance to take this action before they release the results of the development of the chip and have the associated sp increase make such a reward system less affordable.