Ann: Appendix 4C and Quarterly Commentary , page-2

interesting change in language regarding the RST. They have always maintained that it was the only solution that produced A grade automotive finish. Now they admit that it is just one of a number. With BMW and VW both on board with SGL and mass producing composites out of autoclave already is there really an opportunity for QHL in this space?

The rather weak and non-commital language in the quarterly raises real doubts. We have gone from being in negotiations and expecting contracts any moment to saying we are "gaining momentum" and "could" get a piece of the action. So now it is just a dream? And just to make it clear, momentum works in more than one direction. Guess that is why they use such language.

I really get the impression they have nothing more in terms of real business since the JSF contract some 2 and a half years ago. The language has now shifted from the gonna line to "could".