Ann: Appendix 4C - quarterly, page-3

While it looks bad on paper the majority of related party transactions are related to R&D. This will continue to rise as the company earns more money. The company is growing at a decent clip so the investment has not been in vein. MDG is a few years off hitting critical mass.

They could do as GLH do a and capitalize R&D and they would appear very profitable, but they choose to expense it. Neither GLH or MDG are profitable and this will take time to change. But while MDG continues to grow at 20% I will continue to follow and give preference to over GLH.

The New Zealand business alone is worth more than $12 - more in the order of $20M.

The US Consova business is worth in the order of $10M, while the Australian and Indian operations are 'new market' investments and may or may not become profitable over time.But the underlying business commands a higher valuation than current.