Ann: Appendix 4D Half Yearly Report and Accounts , page-4

re: Ann: Appendix 4D Half Yearly Report and A... Vince there is some method to the madness in my picking US$50m to US$75m as an appropriate value for GBI upon CE Mark and TGA approval.

All these types of assets have tended to trade at acquisition multiples of 6-8x their 1st full year revenue estimates.

Sonic Healthcare currently do HPV sales of approx US$3m pa in Europe and my guesstimate is that GBI can double this at least via a licensing deal with the right partner and hence generate approx US$9m in revenue from PapType alone in CY2010.

Multiply this revenue by 7x (mid point of the acquisition multiple range) and this yields an approx EV of US$63m.

This assumes that the licensing partner has only a 12-15%% market share of Europe as Sonic themselves have about 6-7% market share.

Japan is thrown in for free and so is the US opportunity. Other value from the Ampasand and QSand platforms and other tests in development is also a freebie.

Should the partner's market share be substantially greater than 12-15% the value to them in acquiring GBI outright is also far greater.

Strategic positioning for entry into the US market in a few years time with an already developed product/platform would also generate further upside.

The other way I look at it is that the 3 CompCo transactions in the HPV space were for US$580m, US$345m and 316m Euro, all in 2008. At an acquisition value of US$50-US$75m an acquirer of GBI would have a fair degree of comfort that they're geting a fairly nice deal as well (ie. they would be paying 15-20% of previous asset sale values).

The kicker for GBI shareholders is also in the current exchange rate (ie. the strength of the Yen and USD).