Ann: Trading Halt , page-37

Gazzatt,

You may be wondering what I am doing up at this time of the night, but I have been watching the World Cup and now I am having a cuppa and see if I can settle down and go to bed. If not I will be watching the next game between the USA and Ghana.

As for AAR and the placement to Sophisticated Investors.

In my past experience, I found it very rare that the so called Sophisticated Investors hold onto their shares for bigger and better things to come. They would have to be 100% sure that things will turn for the best, and they (the Brokers that organize the Capital raising), would have been shown things that we are not privvy to it. Usually they buy, and sell shortly after, while the market is up and cash in on their 10, 20, or even 30% discounts that Companies award to them for the privilege of getting the money quicker and without going through the usual rigmaroles via some SPP. The ones that usually suffer though, are the long term and loyal shareholders who get no opportunity to participate, while, at the same time, they will suffer dilution. Usual staff. Retail Shareholders are just cannon fodder, and if anyone knows, we are only classified as whingers by the majority of Companies Boards and Management.

The part that would concern me though is, if they are going to receive options as well on the deal, and at what price before they will turn into the money. More dilution of course. But, as for awarding of options, we are only guessing and assuming that this could be the case. And, until we will be notified by the Company of the full term of transaction, all we are, is simply guessing.

Also, IMHO, the only way that the Sophisticated Investors could be stopped into selling and cashing in their holding as soon as possible, would be only if AAR was to do the placement with an Escrow thrown in. If that was the case the shares issued to them would have to be held for the period specified in the Escrow document.

Again, we are only guessing, because the Announcement ddidn't say anything of the kind either.

As for what youn wrote, that the sp could go even lower, that is a definite possibility. If history has to be taken in consideration, that would then become a distinct possibility.

Good luck all,

Buddy