Ann: Business Update, page-6

One difficulty I have with MWR is that although it is still growing it still has to establish that it can turn this growth into cash.

Another problem is in connection with director's options. This years AGM, much like last years, is being asked to approve director/employee options totalling around 3% of the company. Whilst the dollar amounts are not huge the result on share ownership is. If this continues the company is slowly going to become the property of its management.

The third issue is the strike price for exercise of the options. Shareholders are being asked to agree that the exercise price for the options is $1.25 with an expiry date of 2018. Since the share price has in the recent past exceeded $1.25 by a fair way this would not seem to be very onerous, especially given that management has almost of 4 years to achieve it.

Basically, IMO these new options are not aligning management's interest with those of shareholders. IMO it is simply too easy for them to pick up another 3% of the company.