more waiting, page-2

Captain,

In respect to the discrepancy between the quarterly cash receipts and the sales revenue tabled in the update(and as forecast in the Feb 2008 update),this is simply explained by the fact that the plant was in shutdown mode for the months of Nov and Dec 2007. Therefore, no sales receipts were generated during this period so the Q3 sales receipts reflected only the months of Jan and the mid part of Feb in the Q3. Under normal circumstances, it would have included those months of Nov (part) and Dec 2007. The Q4 will better reflect the true cash flow position because it will contain the months of Feb and March 2008 plus April and most of May! So the bottom line here is that the differential between the next quarterly cash receipts (Q4 4c report) and the actual sales revenues will be very much less since there will be no operating anomalies such as the closure of the plant impacting those figures.

As suggseted before, there is much to like about the positioning of SBN. It is a longer term company but when China and Russia eventually gain regulatory approval, watch this space!

SBN can do no more than meet its forecasts +/-5% as it has done as per its Feb update. I expect the organic sales growth to continue going forward, culminating in a breakeven position somewhere between Q4 2008 and Q1 2009. Additionally, I expect substantial progress to be made on any number of potentially company making initiatives, not the least of which include China, Russia, Mexico, Oraline 8, Bioscreens, Visualine and other areas including the saliva diagnostic markets.

And finally, the one thing that can be learned from today's release is that as with most other companies, the update and the quarterly should be contained in the same document released to the ASX, hence avoiding the potential of shareholdrers misreading or misunderstanding one or both documents as I suspect occured this afternoon. Hopefully, everyone who reads HC now understands the fundamental differences in quarterly cash flow statements and sales revenues.