Ann: Quarterly Activity Report and Appendix 4C, page-8

* The Military update warranted a lot more explanation that what was provided. Seems like the hurdles haven’t been overcome and they are looking at what can salvaged and a way forward.

If they are now looking at customers that service the military, what does this mean? – going back to selling FR on webbing, that they did back in Nick’s day.

* “The solution for finished garment application, as usedat Pine Belt, which is under review and is expected to encounter furtherdelays.”

So does this mean that the uniform program is pretty much dead in the short to medium term?

* Also no mention on any progress with ICL.

* Also are BioCool products / sales really just existing PCM sales – so no real big growth in sales, just an updated product – although a superior product

"These sales represent a mix of new and currentend-products where the Company is supplying PCM products."

But it still seems that the bulk of sales are for Bedding and they remain exposed to slow down, loss of customers (particularly Softex) and market limitations (customer/competitor interactions etc ..) .

Still its likely that receipts will grow over the next quarters with summer approaching and hopefully the roll out of TMSS and FR. But it seems that investors will have to focus on sales growth in the FR socks and TMSS areas, and discount the military side (well at least the uniforms) … as for ICL, well ....

But really will sales growth in bedding be enough for investors ?