Ann: Appendix 4C - quarterly, page-102

I don't think people have assumed that previous management LIKED to lose money. Not at all. But if you had checked out the previous team you might notice a couple of things. First that the (executive) chair who crawled away in May actually had a history with businesses that didn't make for happy reading. The best example is to locate the SEC submission made for PSvida just after he left. The CEO who left in august last year is no longer a well credentialed business man with a PhD but a long time professional cyclist. My view is that the most recently departed CEO may well have been hired for attributes that have little to do with being able to run a business. He just sounded good for a while.

I don't think any of us can make a judgment about the commercial characteristics of their products because we've had too many versions of what's going on and too many excuses for failure up till recently

A couple of years ago someone posted an analyst commentary which referred to the risks associated with rapid sales growth - that it could red flag poor margins. They were right. All the commentary that highlighted that was correct but many of us suffered from the challenge of cognitive dissonance - we were so sucked in that we couldn't view alternative data dispassionately.

Putting out the 4c must have been tough but I think we had been warned indirectly. Personally I think it's too early to decide what the truth is and I have stated a few times that I don't like it that there are vestiges of the previous dysfunction in the three US directors that remain on the Board. However I'm still in the camp that believes it will be possible to redirect the business.

So for now it's still probably a matter of faith. It's up to you to decide whether you want to take that step or not. As for trying to avoid the same mistakes we all made - well given your comments so far it seems that you have already adopted a position So if you believe the product isn't that unique, can't demand a premium etc etc then what on earth is it that you are looking for. If we are all thinking it could be a while before things right themselves and evidence is in, you're going to prepared to wait or you'll walk away. I don't think anyone can give you security at this point

P