Ann: CEO Letter to Shareholders, page-13

Every company board campaigns for themselves. In terms of their intent with the capital raise I don't want to speculate as to their intentions. I can see why you might draw that conclusion, but they also had a very legitimate reason for expediting a capital raise. They needed to do this lactoferrin expansion properly the first time, instead of screwing around with it and drawing it out. I also would question the intention of the Chinese companies that are pushing for the spill. I don't trust that they will have broader shareholders interests in mind.

I generally agree that the board has done a poor job. Although I feel confident that if the company can follow through on the focus that the CEO gave them, then they can become very profitable. So they need to either retain him as a consultant or on the board if at all possible, and/or find a new CEO with the same level of focus and vision. They need to start seeing themselves as a manufacturing business and not a farming business. They need to be focused very narrowly on the things that they can do well and make money in instead of trying to do 10 different things badly.

Lastly, if they are profitable this year I believe we will see a significant re-pricing upwards. They have to really screw this up to not be profitable at this stage, which I am hopeful they will not do. Their is a lot of pessimism built into the current share price, which is not unwarranted given the boards track record so far.