Ann: Appendix 4C - quarterly-MLA.AX, page-7

Thank you Imspartacus for your research and views. Have to say that I agree with you on many points, in particular, about Donnison being a salesman but I think that there was far too much spin on many of his announcements - I think that it is better to have fewer announcements and concentrate on ones that deliver improved performance.

Everyone knows my opinions about Medivet and I got burned too. I'm not sure that Donnison's due diligence was sufficient and maybe that was the reason he had to move on. I think that once MLA got its hands on the business the problems became very evident. Bruce Hancox's entry onto the MLA Board probably played a big part in the undertaking of a critical review of the acquisition.

I think that Ellis could do more in terms of communication. I do not mean endless announcements but what about an investor presentation?

Once thing that was mentioned in the 4C and commented on in an earlier post was "taking advantage of supplier incentives" and the use of FX contracts. Is this the reason that inventory kicked up in the Q? If so that might mean that the additional inventory was bought at a discount with the benefit to be delivered when sold. This would seem like a good use of funds to me.

It is interesting to note that when the $A was at parity or above the company could never record a profit. Now that it is 25% lower (and the Medivet business is gone) MLA records consistent profits! What has changed? New blood on both the management team and the Board. The FX contracts should smooth out any issues and minimise risk over the next 6 months.

IMHO there is a lot more upside to this stock than the market is giving it credit for.