spotlight on mae, 30 june 2009, page-4

Hi everyone My thoughts re options

1. Given the current sp, and the volume of options I believe that it is highly unlikely that any traditional bankers would provide finance to the directors. Obviously this would have been diferent if there were an offer for greater than 30c eg 40c +.

2. This only leaves non traditional finance and at the end of the day this is predominantly private equity. Now if PE were to finance ask yourself what the fee would be. If it was me and I thought that the directors were desperate I would be asking for 100% return + 50% of any upside.

3. I am sure that directors have explored both of the above options.

4. As I assume option 1 is not available this only leaves option 2 this may be unpallatable to directors.

5. The other option for directors is to ask the s/h to approve new options. For the directors this is not without its obvious dangers however these may outweigh the cost of option 2. In saying this I also believe that the current directors have very close relationships with major s/h.

Summary

a) To draw a conclusion that MAE is completely buggered if the directors do not exercise their current options is I believe wrong. This imo may just as easily indicate that the cost of finance was too high.

b) The main game is still in play and imo nothing has changed now for 6 weeks, ( other than rumours of 4-6 interested parties, it is worth noting that if this rumour is at all true then we will all be very happy). I also believe that the game is getting very close to a conclusion and imo this conclusion will be rewarding for all mae shareholders holding at the end.

Good luck