due to turn, page-7

Half yearly reads well. look at those milestones ... all good ... surely if they build it the punters will come ... Revenues were way down, but they have heaps going on to remedy that in coming months ... NTA of almost .10 and its trading at just .16 of late. TIme running out though. now or never for these guys ...

Review of operations ...

The Company successfully raised $4.0 million (before costs) via a partial underwriting by Patersons Securities of the Options which expired prior to Christmas 2006. The funds raised will be applied to continuing to fund the growth and development of the Medic Vision business. The Directors look forward to continuing to report on further developmentments within the Company's portfolio.
• Signed Immersion Medical as a distributor of the Mediseus Epidural Simulator in the USA and Canada.
• Launched the Mediseus Temporal Bone simulator.
• Signed an agreement in Tibet to develop a state of the art medical skills training centre and supply medical
and surgical training simulators for the Medical Institute of XiZhang University.
• Completed the first phase consultancy to the Royal College of Surgeons of England for the development of
their new surgical skills training facility in London.
• Supplied a “Harvey” cardio pulmonary patient simulator and an Eyesi simulator to Queensland Health.
• Supplied The University of Newcastle, School of Medicine a “Harvey” cardio pulmonary patient simulator
and an intravenous cannulation simulator for its undergraduate medical training department.
• Commenced a collaborative development of a Simulator for Training Interventional Radiologists with the
University of Liverpool, Royal Liverpool University, Broadgreen Hospitals NHS Trust, Imperial College London,
University of Wales (Bangor), University of Hull, University of Leeds, Central Manchester & Manchester
Children’s University Hospitals NHS Trust
The Board remains confident of strengthening sales for the Medic Vision products in the UK, Australia, China and Asia
Pacific throughout calandar 2007. The Company maintains a strong and expanding sales pipeline with the expectation
of converting many of these quotes into actual sales during 2007.
• Signed a Memorandum of Understanding (MOU) with Southern Medical University in Guangzhou, China to
develop a ‘state of the art’ skills training centre and the supply of computer-based virtual reality surgical
simulation and consulting services.
• Won the Cheung Kong Infrastructure Business Innovation Award in Hong Kong at the AustCham Australia
China Business Awards Ceremony.
• Signed an MOU with US-based virtual reality software company Forterra Systems Inc in relation to the
development of a Mass Trauma Training simulator
• Sold cannulation simulation to Southwest Hospital in Chongqing China
• Been awarded the "People's Choice" award on The New Inventors program in 2006.
• First sale of a Simulator for training nurses, doctors and paramedics in intravenous techniques.
• Awarded consultancy for the Centre for Education, Innovation & Research at Torbay Hospital, UK.
The second half of 2006 was a particularly active period for the Company, characterised by continued growth in the
sales pipeline particularly in the UK and Chinese markets in its operating subsidiary, Medic Vision. Whilst actual
recorded sales for the period were down on last year, this reflects the long lead times associated with many of the
larger sales which remian in the pipeline, and are still expected to be secured.