Ann: Metal Storm, DSTO and Airtronic USA, Inc. Si, page-13

re: Ann: Metal Storm, DSTO and Airtronic USA,... WGJ,

I like Moosey's idea, but even I think it is a stretch. But it would be nice.

What I do like about this announcement is that;

1) Aust DSTO is collaborating with MST. Apparently hell just hit 0%.

2) A serious US company is collaboratting with MST. Would they enter a collaboration ageement with a company about to fold? I suspect that the 'going concern' statement from auditors was essential to this agreement.

3) MST Tech appears essential to the deal and it has a short time to results...this year!

I think CJS, your concern, while valid, misses the most important point. We were and still are on the brink of failure. Let's get some money in the tin to get full value for some other stuff when we're a stable company who doesn't need Dutchess or other constant share issues. Collaborating with a first world government and an established manufacturer with connections straight into the US military, where the tech could be in there before our options expire (for those of us who took up the rights issue) sound good. This might start to represent some incline in SP value, even if we could have perhaps done better by holding out.

So why did the SP end up back where it started the day? I suspect because the financial woes of MST are unchanged by this news. We still need $1m more in cash and then another $15m-$20m by September, unless noteholders will rollover, which I suspect they will, after having done so 18 months ago.