Appendix 4C, page-72

Hi all,

I have no concerns about the partners, the technology or the status of any of the many projects that are progressing along. My main interest is to determine if timelines remain on track. After all, the main source of frustration by many shareholders is the lack of news and apparent progress. I asked Glyn for his comment on this and was reassured by his response:

Hi Glyn,

I hope you are well. I was surprised by today's early release of the 4C as it is normally late in the month.
Shareholders seems to be disgruntled by the report for the lack of detail and insight. I thought is was as expected, but am concerned the SP will tumble as confidence seems to be waning. I have a considerable investment, which I will hold firm on, but am concerned we will dip and return to current levels on good news in the future.
Baker Young also appear perplexed by the slower than expected progress. Are you happy with the timelines and milestones being met?

I understand it's slow going, but can we expect a different approach to updating shareholders in the future?

Hi xxx,

We are making quite speedy progress actually, particularly with SKII, Coty and the Work Plans in the US and of course our own Bodyguard program. In the former, we must remember that we are working here with a company that turns over $US80 billion per year so we must remain patient, we cannot control the program. And most of our work is being done for the very first time, there is little to learn from anybody before us.

So we are all very pleased with where we are all at.

Cheers,

Glyn

Five years ago I worked for a golf company who's biggest competitor launched a major innovation. It took the best part of three years for the market to catch on and incorporate the same technology in their products.

Competitors took many years to release their first smart phone following the launch of the original iPhone.

I guess what I am saying is it does take time. We have no idea of the loop holes and process that is required by OBJ and all their partners evidenced by the many uniformed posts here on this forum. It's a waiting game for those who want to double, triple their investment from the 10-12c entry level, for others it's a waiting game to see 2000%+ return. It's clear who the squeaky wheels are on HC.