any update from the agm?, page-2

Will write more over the next few days but 7 individuals in the room excluding directors, I was the fifth shareholder to sign the register and I think I was the last, so the other two may have just been interested parties.

Feeling was good and most if not all of your questions where asked when we went for coffee. Overall they like the education sector and believe that they can embed themselves fare deeper in it. Its a hard sector to enter as it takes time to build up the relationships, but unless you really cock it up you are in there for a long time. The school fees product has a lot of excitement around it as it could generate a high level of set upfees, and reoccuring payment fees.

On school news they have a substatial number of schools with more than 5 people registered, they just don't yet have a headmaster who is willing to launch it.

Some discussion with the guys around the number of small shareholders i.e. less than a marketable parcel - around 125 shareholders have less than 1000 shares. Also about the dividend and what is modest etc. Again they were interested in our views and I told them that the forums where split - income and what it stands for (dependable etc) against keep the funds and grow.

In the childcare sector I think the answer was some initial issues with the product and it requiring a few different features but they have it under control - also they are really happy with a new account manager they have for that sector.

They were interested in the forums as they don't check and didn't know that we had a small group following them.

The slower second half is what they say their model is telling them so thats what they report to the market - so will it be higher who knows, at this stage what they are saying is what they believe is correct.

Converting the 300k debt to shares is an interesting one. Report for shareholders to consider it may cost $40k. Will also push Mark potentially over 20% so they are treading carefully on that one. I'm not keen on it. They should just take their $ back and then buy on market... (not that they ever could) raised with them the option of doing a SPP if they needed additional $ esp to be able to offer the small holders a way of growing their shareholding.

Sorry if this rambles a bit but had an early flight back from Melb this morning to NZ so has been a long day.