Ann: Director Funding, page-6

Good news in regard to Directors' funding. IMO: This provides additional working capital while the board is negotiating loan with lenders or shares placement with investors. With this additional working capital, the board will not feel under pressure and they will be able to negotiate the best funding terms in the interest of all shareholders.

The directors' loan (R. Phillips and J. Dekker) of $100K is free of interest and no set of repayment date. This demonstrates the directors' confidence in ERJ. Please note that those directors are also the major shareholders of ERJ. I am sure that these directors will do their best to protect their interest and of course other shareholders' interest.

Extract from the notice of Directors' interest (Appendix 3 X)
Name of holder & nature of interest
R & M Phillips S/F and Fastnet Investments: 3,695,000 shares + 520,000 shares

Dekker Family A/C; Dekker Rezelico S/F; Dekker Family A/C; Dekker Family A/C;
Number & class of Securities
36,361,013 ordinary shares
13,825,000 ordinary shares
2,808,471 options
22,500 options