reply from pb

Hi Michael,

Considering where we have come from and where we are today in such a short time we of course have not had a totally smooth ride all the way - it is easy to nit pick and the questions raised are generally really petty with respect to where we are now and our opportunity. I do not know who these questions were asked of as I have not seen them before but will address:

Generics take over 12 months for each product to get TGA approval - it (generics marketing) is not our focus as it is low rent profits. We have not engaged a gun pharma team to sell Rosehip Vital and Aden and Anais - product delays for all sorts of reasons frustrate us equally but we clearly have an objective to deliver - Again regardless of if products are natural or pharmaceutical they all require some level of TGA approval, label and packaging design, compliance etc - for each and every product this takes time.

Boots are not piloting our TeleMedCare units, they are piloting their own mini clinics as business propositions - our unit is fully accepted as an integral part of these clinics as Boots selected the best available on the market. By all account they are going well, but will obviously need to wait until they formally follow through on pilot or otherwise. Aside from this I would suggest that we are not Boots reliant.

How would this 'pump' anything? We are all about disclosure, when we are approached my majors and have multiple people involved from both our end and theirs all w edo is alert the market to the discussion status - it means nothing until delivered, but is does put everyone on an equal footing with regard to unsubstantiated 'rumour'.

Again, involve quite a number of third parties nd yes we do - how long do these normally take? It is a process.

We have test marketed a number of initiatives, we are dealing, as we have announced, with regulatory compliance - if we make claims it is a drug and requires massive clinicals for approval. If we do not there are still a myriad of compliance issues to address - we have advised the market of this - the product however s we have also advised is natural and sensational.

This statement as reported in the media refers to a fully deployed plant in approx 18 months as I believe the Press also referenced. Reality is we inherited 13 ton of product with the acquisition - it owes us nothing - when traing the first plant employees you need to start with a product - I figure this is as good as any and at what cost of production will be rest assured we will have no problem selling it. I do agree this is not what we are about at the plant. Today, however, I cannot comment on that aside from advising what we have always stated - that the Company wants to control the design and manufacture of certain unique product.

Finally we did not need to raise $50k - a negotiated settlement means just that - If it is in shares that we are required to issue we re then required to advise the market - simple as that.

Regards,

Peter