letter to gk

After listening to the Investor Conference Call on that fateful night on Monday, I decided to write to GK to seek his further thoughts on 2 particular points I felt would clarify some of the positive tone from the Conference Call.

I received a reply from Rebecca Wilson yesterday, and am now waiting for her blessing to quote what she wrote. However, it's taken all week to get to this point and I'm not prepared to wait any longer, so will para phrase parts of her answer and if there's enough interest on the thread, I'll follow up with the actual email once her OK is received... I think that is a fair and proper course of action.

-- starts --

Dear Mr Kempler

I am writing to you directly to further understand some of the comments you made during the investor conference call last night.

I'd like to begin by saying that despite the pain we will all feel in the near term that result from the Imagine Trial report, I am still greatly encouraged, and proud to be a long term shareholder, with such an amazing team working towards beneficial outcomes for AD and HD sufferers.

Last night raised many questions, but there are two points in particular I would like to have your comments on.

Firstly, Diane Angus and yourself suggested that going forward, the company would be "very bullish" toward designing subsequent trials for AD that focus on cognition as a primary endpoint. Given earlier studies and encouraging results in the Reach 2HD results, I can surmise why that may be the case, however I would like to know what evidence your comments were based on?

Secondly, I am sure you are aware of the Channel 7 Today Tonight story that ran not so long ago that showed a pack shot with PBT2 clearly on the label, and a patient and his partner describing the very apparent benefits he has experienced on that unnamed trial. Can you now confirm if that story related to the Imagine Trial? and I guess in relation to the first question above, were there any observations made of patients describing significant benefits like the patient in that story? i.e. are your "bullish" comments made in any way based on observations of the trial group but were not reported as they were outside the stated objectives of the trial?

Thank you in advance.

Rebecca Wilson response included the following points:

> In relation to focussing on cognition in further studies I was given a corporate answer that basically said that it is an important area of interest and Prana is committed to advancing PBT2 for AD. She also said that investors will be informed as the trial design progresses.

> In relation to the Channel 7 Today Tonight story, she confirmed that patient was on the IMAGINE trial but was not able to comment on any detail. There is a little more text in her reply but I'll leave it at that until I hear back from her.

Knowing this now provides me further confidence that PBT2 will continue to show promise as a treatment. In terms of my investment, my strategy has always been to hold through till at least PIII results for AD and am expecting the SP to turn around fairly quickly ahead of final IMAGINE trial report, peer reviews for both AD and HD and the HD PIII announcement.