ERG Where there is smoke their is Fire

Are you kidding.

This company has a going concern qualification. The auditors do not issue this sought of qualification without cause.

Its underlying business makes losses and has done so for years. The future holds significant uncertainty

Do you think this company has a future when the Board and Management team have continued to deceive the market.

For all the mums and dads that invested in the rights issue at 50 cents...do you believe that the December 2001 result was just an accounting exercise ...this company has a history a bullshit...the company enters into contracts that do not make make money...who cares about the technology it is irrelevant.

Blue sky prediction mean nothing when your fundamentals do not stack up.

This company needs to be held to account and the ASIC should take the Board to task The prospectus issued to shareholders did not reveal the extent of the underlying problems.

Do not kid yourself..the die hard ERG shareholders better wake up. This company has no future because its underlying business model does not work. It is that simple.

Just reflect on the June 2001 Accounts. This is very simple. Look and Listen. The truth is in the numbers it is just a matter of interpretation. Check out note 3 of the accounts.

Operating Profit before tax 6,351

Individually significant items

Less One Off Adjustments

Tech Licences (4,159)
Sale of Business Assets (5,171)
Profit on sales of controlled
entity (ERG Connect) (5,985)
Profit on contribution from sale of
manufacturing business (34,123)

Less Special accounting adjustments

Overheads applied to projects
one off adjustmenrs (9,444)
Capitalisation of tender costs
Sydney..where is the project (3,189)
Legal cost capped (1,091)

Underlying LOSS at June 2001 (56,811)

This tells you everything, just imagine what has not been disclosed.

If the institutions have dumped the stock and Motorola have moved on all you need to ask yourself is WHY.

WHY have they dumped the stock and why have all the bigboys dumped the stock. The answer is SIMPLE. This stock is a dangerous play with a going concern qualification hanging over its head.

The management have no substance and the BOARD can not be trusted.