Ann: Response to ASX Query, page-8

That's an excellent response by ANO.

For example:
'Investigations highlighted that with the rapid growth in raw materials, combined with the addition of manufacturing in Brisbane and multiple warehouse locations (three in Perth and two in Brisbane) there were issues in the transfer of stock between locations and the timely recording of inventory movements. In effect, the control procedures did not keep pace with the rapid growth of the business."

Completely understandable. The growth in demand for the company's products over the last year has been phenomenal (unprecedented in the company's history) and they've done exceptionally well just keeping up with that demand - let alone installing all the extra capacity as they've done. The fact that one or two of their control procedures fell a little behind in such a period of rapid growth is hardly surprising - in fact I'd be more surprised if they hadn't.

These are very minor issues and I've no doubt Lev and Geoff will get on top of them (if they haven't already).

I've no problem with the ASX asking the questions (that's their duty) but equally I think ANO's explanation is perfectly sound. Well done ANO - keep up the great work.