Ann: Notice received under section 249D of the Corporations Act, page-50

The issue is not so much if this has been achieved rlj but:

- how? (no partnerships, questionable strategy, lapses);
- how quickly? (delays)
- how much? (enormous dilution whilst handsome compensation rolls on)
- Outlook - its remained unclear how the management team will execute to achieve sales when no confident strategy or capability is in place.

These and other elements of future growth do not appear to be being pursued, so a view is that the company is under achieving and a change is warranted. There are always times when individuals become unfit for a role over time (lack alignment to role), but hold on due to incentives. This happens everywhere. There is nothing wrong with changing management, on the contrary its healthy particularly when a new phase of the business occurs.

Ultimately the management team needs to have the confidence of the market and this appears to have been lost.