Mxl- green alert>15c, page-9

Since I last wrote not too long ago, mxl has performed well in both the business sense and the ahare price. Over the last few days the interest in mxl has been extremely good. As discussed in the previous post I was expecting some excitement in the US and soon after mxl made announement regarding their involvement in the US. And I did say that we would be expecting some further announcements from within Aust and yesterday we were not disappointed with the contract with the education department of Queensland. At least a couple of potentials that I summarised in my previous post have materialised, I am happy to say.

We are still expecting a few other contracts to be announced especially that through the microsoft connection. And obviously Asia is still quiet but I am sure once they resolve the issues there, they would be able to make an announcement that would improve further the price to our target valuation of 25c. The 1st green alert target of 15c+ has been reached, just though, but I expect that to consolidate and perhaps get to next range expected of 20c before it test higher range perhaps in Dec with more announcements coming through.

The last announcement was very good as well with confirmation of contract in Aust- these are the quality contracts that mxl needs. Remember the company is still trying to build up credibility and reputation and with quality base, the new contracts will form great terms of reference. Once they get a few good ones on board we could see a domino effect with many companies to follow. That would happen as well with the other countries especially the UK. See the announcement below.

For the first time, mxl is also talking about the middle eastern countries. I just wonder what potential exists with the middle eastern bloc. I am more excited with the Asian and the US market. In the announcement mxl did again point out that the Asian negotiations are still going- so we can expect some results very soon.

ASX Announcement - MXL signs contract with Queensland Government
Education Department for the installation of eMinerva into its
International Schools Network.

MXL has signed a contract with Education Queensland International, a
branch of the Queensland Education Department for installation of
eMinerva college management system across the 27 schools within the
Education Queensland schools network that host international
students. The initial network of 27 schools is expected to expand to
more than 50 over the next twelve months. Student population will
also grow from the current base of 1500. MXL is extremely pleased
that the Queensland Education Department has become an eMinerva
client. This Government contract demonstrates to the market the level
of credibility, maturity and acceptance the eMinerva solution has
achieved since its development.

In other activities MXL has received verbal agreement from another UK
based software distributor for the distribution of eMinerva into the
UK and European markets. The option of acquiring rights into selected
Middle Eastern markets is also being actively pursued by the
distributor. Discussions are ongoing with potential distributors for
Singapore and Australia, and interest is growing from within the
global Microsoft distributor network. Discussion with two content
providers is progressing well with the technology compatibility
issues having been resolved.

R Clements
CEO

I have mentioned this and I will mention again. The Dec options are due at the end of Dec. Mxl is working very very hard to ensure that the options are very deep in the money- I guess to ensure that there is no need to even underwrite the issue ie saving the cost if the company is sure that they will be exercised. At the current rate and if the shares could, with positive announcements to come, go above 20cents by Dec, mxl can be guaranteed that the options will be exercised and the company receives a few millions dollars of additional capital. Looking at the annoucements and having discuss the potential activities of the company, it looks it is going to be an exciting 2months ahead and we should see positive move in the price from the current 15c level. Remember also that mxl will be cashflow positive in the next calendar and that would add to its attractiveness. Lets see if our green alert now at 20c will come true.

Research yourself and see if you agree.

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