Ann: Chairman's and Managing Director's letter to Shareholders, page-14

On reflection over the past 12 months I am personally flabbergasted, still ongoing. I have no animosity towards anyone involved, I just dont get the cloudy Anns in my opinion. Loads of content in the letter but where is the proof of delivery and revenue not yet here is gone beyond a joke! This is the Ann we would like something with "The Outcome and rewards for shareholders"! All this hard work we are lead to believe is not producing anything of significance so far and probably not during 2018 either if I have just been told in his letter, well thats the way it reads. Where is the INCOME from Telink for example. Whats the hold up? What did Mr Wenjun Sheng actual achieve for us through his role? Sd micro cards whats happening with the revenue for these and where are they? Our "partners', are they paying monthly, ninety days or yearly? Which would reflect short term revenue.....This is stuff I would like to know. Simple stuff we should not have to ask.

The letter .......

Professional Healthcare will provide the majority of Xped’s revenue in FY18, what the heck!, surely they cant be serious, thats it, thats not going to amount to much in my opinion. What about the income form Telink and the App and everything else they have been DEVELOPING? So what I am making of that is a couple of Million from revenue next year, thats very disappointing and doesnt help the extremely vulnerable share price currently. Arent they forgetting a few other income streams that should be significantly more than that and this information would help the SP immediately. I would be expecting at least 30 million turnover (why not) from all the licensing and ADRC Tech thats been adapted, not to mention all the staff we have selling, what are they all doing and obviously if Our past MD is residing himself now to Revenue Growth going forward whats he bringing to the table? What is his given target for sales? Is that information accessible? we forecast significant growth in this area from FY17. This growth is expected from our Channel Partner sales, from direct sales, and from new revenue areas such as the technology-assisted independent living sector. From December 1, I will be transitioning into a purely business development role to drive revenue growth. I leave my role as Managing Director reflecting on the significant transformation and growth significant growth should be reflected by significant ANNOUNCEMENTS that the Company has seen from a technology and product readiness perspective over the past 12 months. Wasnt all this ready when Martin came onboard? If they could just explain in detail the growth via a graph to show me where the growth is, would make me understand the statement.

What is going on with porting Telink Chipsets havent they already done that 12 months ago.........

Iam afraid that letter leaves me feeling more frustrated and Peters letter makes me worried because of the date of the letter, its weeks old. Sitting on stuff knowing full well shareholders are suffering is an insight into how active the company is when considering some very important problems we are having and one significant one is the lack of communication!

I also wonder about Wenjun Sheng and the boards decision process. Currently over 20% commission on any potential sales he makes at $250K (I assume this is profit) if its not well that needs to be addressed urgently and we need clarity on this ASAP. With share price at the moment he stands to make $80 thousand AUD (in shares), obviously wages are not enough. With commission like that it should be only commission based no wages in my opinion. If he can negotiate a high premium like that surely he should be put on a much higher achievement regarding sales to match the premium and his obvious talent. IMO, Commissions should be going to a dedicated sales team if this business is to reflect what every other legitimate business has to do to survive and thats to implement a blueprint of scale for any viable business. We could get a mountain of Top Level sales people in the industry for whats been adopted here globally. Five people instead of one, would increase sales to where we need them in the short term not all our money (eggs) in one basket it doesnt make good economic business going forward to me or any of my peers. A Sales Team dedicated to the business makes much more sense with a Sales Manager and some wages and commissions taken of the top to fund this. Again all our eggs are at the top of the food chain.

All in my opinion and based on my own experience selling overseas and in Australia. I have no idea where these guys get their ideas from for rewards to only frustrate a shareholder even more.

Cant wait for the AGM I'll be going now if I can. I have lost so much here a ticket to SA wont be an issue. I hope everyone who can afford to go shows up to reiterate our frustration and bewilderment of their decision regime. It doesnt make sense to me as a shareholder or businessman and thats me personally.



I hope and pray for better pastures here. I hope and pray that this will turn around for so many of us including my wife whom I have had to tell I didnt sell! She said hold twelve months ago when I was going to sell. Now she is mad at herself for not listening to me as she believed in the Directors, "they work hard and are making MOU's how exciting", we both believed really. Now its time to come up with the goods and I am dreaming of a much better year for us as the Ann doesn't read any significant change till December...2018 with no detail of projections for products currently still being ported or in the market currently with no news of how they are doing and projections for these either.

Our Patents, how have they protected us in the market with other released similar products now out there and significantly so????? Are they justified as I was lead to believe? These are questions I have when the meeting comes up.





All in my opinion, do your own research .