Ann: Preliminary Final Report & Annual Financial , page-7

re: Ann: Preliminary Final Report & Annual Fi... J,

Welcome back - you are correct of course. I'm certainly not expecting any further "forecasts" from the company given the forecasting debacle still hanging over them around the Vietnam contract.

The PowerEagle deal for this year is low volume as it ramps up and only if it reaches PowerEagles sales unit targets in subsequent years will be see an overall profit generated for VMT as a whole. This deal is very low margin (10% max) compared to the normal 20% margins.

Realistically they probably need another of these deals.

If I was in management - I'd be hoping to release some further positive news over the next few months to get the price back up to 2cents - then look to raise capital for an AIM listing at 2cents. It may also be interesting to see if they do a share consolidation prior to an AIM listing.

It's still going to take a while for the non China business to reach the volume required for profitability....but they are well placed IMO for the future.

sents