resumes 10.50, page-4

Stephensorich,

With respect I disagree. I think this has actually been a measured response from management.

They clearly have a number of significant potential projects overseas, but have been prudent in saying they cannot predict the impact of the DERM decision. No responsible director of an Australian company would say anything otherwise.

They have advised the market they have the ability to meet short-term spending obligations, but their ability to raise cash in the future may be impacted by the Derm decision as per above. Again a prudent approach, anything else would be laughed at by the market.

They have also questioned the decision and the factually accuracy of the expert report, and advised legal action is being considered. Goes without saying specific legal action cannot be determined until you understand the nature of the decision.

Finally I think the best part was the one liner at the end, saying the technology works and is being used by a number of different companies through ERGO. What better message to send to potential joint partners?

In all I for one am feeling far more confident that I was Friday night, management are fighting and we are at least trading.