Ann: MMS: McMillan Shakespeare and Eclipx merger, page-24

Sorry my point was poorly put, the largely script offer from MMS with an inflated PE and our PE low suggests to me the beneficiaries of a merger and future value are weighted in favour of MMS shareholders over ECX shareholders. Our revenue per share was much higher than that of MMS so IMO it is no different to a capital raising.... long term MMS shareholders say thanks whilst we experience the effects of a capital raising - revenue spead across more shares. The offer and calapse of the MMS SP has closed the PE gap to 13.5 v 11 which is still a poor offer IMO.

To put it another way was it more achievable for ECX to increase its PE organically to 12 (20% increase) than it was for MMS to increase theirs to 17... we are without dought the victim of an opportunistic takeover.

PE's were in the order of 15 (MMS) v 10 (ECX) so in my opinion MMS have been able to pull this off more on good fortune and SP stability rather than scale or a better performing business.

Certainly understand why our SP is behaving as it is, my point is I'm not sure why ECX shareholders would get excited by the MMS merger.

With the pathetic performance of the MMS SP post the offer I am now convinced we'll see an all cash offer from elsewhere which will see real value of $2.85+ rather than the perceived value MMS want us to see in an overvalued script.

Sorry for the negativity but the offer from MMS is weak and being exposed each day as the market realises MMS have been operating on an over inflated PE.