company update

The Listing Manager
Australian Stock Exchange Limited
Level 8, 2 The Esplanade
PERTH WA 6000
Company Update
Dear Sir
The Company provides the following update.
As advised in the announcement of 14 July 2008, the Company’s employees had been issued
with termination notices, which varied from 6 weeks for executives to 4 weeks for other
members of staff. The Company has agreed with the staff who wish to remain that their notice
periods be extended to 6 weeks. The final day of the employee notice period is 25 August
2008.
The Company is continuing discussions with various interested parties to raise the working
capital needed to continue the commercialising of its leading edge CVM™ aircraft structural
integrity monitoring technology.
As previously advised, the non-executive directors of the Company have suspended their
remuneration, and the Company’s Managing Director and Chief Executive Officer, Mr Mark
Vellacott, remains on the board.
The Company has been informed by The Boeing Company that the regulatory approval
process for an initial application of CVM™ sensors has been put on-hold due to a major
restructure of operations of one of the US airlines that have sponsored this application. This
decision is due to the on-going impact of high fuel prices on US airlines, and as such is
beyond the control of the Company.
It is important to note that this does not affect the similar programs that the Company has in
progress to introduce CVM™ sensors onto ageing commercial aircraft manufactured by other
major aircraft manufacturers, and also the programs that are in progress with military aircraft
operators around the world.
2
Due to the progress that has been achieved thus far, The Boeing Company remains committed
to the introduction of CVM™ technology on its commercial and large military aircraft, and is
actively looking to replace the suspended program with another program on a large military
aircraft.
Yours faithfully
Colin McDonald
Company Secretary
Notes:
Structural