letter to shareholders, page-18

Cornbinder; There was discussion on this very point on Wednesday night when the new candidates introduced themselves, their background and vision for the future of the company (Brisbane meeting). I want to preface this by saying that i don't recall the exact language and if someone else out there recalls this better than me, i'm happy to be corrected. Here goes.... This exact scenario was raised by one of the shareholders as a question to the panel of proposed directors. The response was that whilst it would not be ideal to walk into an empty office, and certainly not their intention, they had the skills and contacts to able to quickly locate suitable candidates to the board. They all seemed very confident on this fact to the point that if this is what eventuates the feeling was, 'so be it'. Someone also mentioned that if the others walk then, we are most likely better without them. The science is still our primary investment here.

Just take a look at this for a moment.

Dr Ralph Craven:

- Chair of Ergon Energy Corporation Limited (I believe Ergon would be in the top 10 ASX listed companies if it was in fact listed)
- Chair of Australian Electricity Systems Pty Ltd.
- Non-executive director Drill Torque Limited (ASX:DTQ)
- previously deputy Chairman Arrow energy

This is Just to name part of his history and i'm not including the fact that he seems to be a very genuine fellow; which for me, would almost be enough in itself after what we've endured.

Helen Cameron:

For starters she has a Bachelor of Science in Biochemistry and Microbiology.

Already sounds more qualified than Mr Jones !

Director Citigroup - head of healthcare Research
Chairman - Avexa Corporation ( A biotech company $100m)
Director - Zenyth / Amrad (a health sciences company > $250m)

Again, just to name a few and a very personable and genuine lady.

Against my better judgement I'll say this. Mr Jones's primary past experience is in a bus company. If the other non-executive directors are really going to follow Mr Jones, then I see this as a blemish on their integrity. I am supremely confident that science will triumph and the new proposed directors will represent our interests significantly better than we are used to.

I'd also like to highlight some of Mr Jones statements in his letter to Shareholders in relation to the proposed directors.

? No drug development experience
? Lack of connections with potential licensee pharmaceutical companies
? Absence of experience with a pharmaceutical company partner in bringing a drug to commercialisation
? No history in concluding licensing agreements in the pharmaceutical industry

I'd like to see what Mr Jones's experience in these matters is? He certainly hasn't proved to date that he has any of these skills in my opinion.