stock-take

Good morning guys.

I thought I might pop in here and give a brief run down on where I am at with my investment in INT, as I regularly receive emails and phone calls from many shareholders, asking me for some direction or clarity.

I have over the last few weeks, had a meeting with Ian, spoken with Andrew, and had a few very detailed conversations with John. I feel that I personally have the level of understanding and comfort to be able to provide to this forum what my position now is.

Earlier this year, I started to have some very grave concerns about the INT business model. Despite being very closely involved in a number of meetings I organised between management and some very large institutional property owners, where I saw a very high level of interest in what we do and how we do it, there seemed to be a massive disconnect between this high level of interest and take up levels or sales reported to the ASX.

Long and the short of it, it is my opinion that what we do is very unique, and that we are infact gaining a very high level of acceptance amongst property owners and developers.

There have been a couple of very large contract that each on their own were company makers, and for one reason or another, they did not come off. Whilst our management were very sure that some of these were done deals, they are certainly guilty in my book of counting their chickens too early, which resulted in revenue forecasts that simply could not be achieved.

Some of these deals are still in negotiation with road blocks being slowly worked around. They have all been taken out of the revenue estimates and should they come off, will be an unexpected bonus.

Regarding the funding proposal with La Jolla, I have spoken with John Evans in great detail about the structure and how it works. I must admit, that when I first read the deal I thought it was a reasonable solution for us. Then I read much about the previous experience that 5 other ASX companies had, and thanks to a fair amount of research provided by davidob, was convinced that there was a pattern of SP destruction amongst the group of La Jolla funded businesses.

After a discussion last night with John, I am happy to publicly state that I will be voting yes to the funding proposal.

We are at a point in our life-cycle where we are growing very quickly, and as a result of that we need to resource different parts of our business to ensure the delivery of service that our partners will expect. Whilst I am convinced we will not require anywhere near the amount of funding we have access to, we do need cash right now. If we raise it via SPP or cap raising of any sort, we face the same dilution and potential selling of stock on market, further depressing our SP.

I know there are plenty of different opinions out there and you all have your own experience and reasons for liking or not liking this set up. For that reason I am not going to engage in debate or discussion on the pros and cons of this set up. I will however say that my fears and dislikes about the structure have all been addressed and I feel that the contract has been amended as much as it could have been to our favor, as opposed to those entered into by all the other examples of La Jolla funding we have seen to date.

I can also confirm that I have Johns permission to state on this forum that La Jolla have only converted a relatively small percentage of their loan to shares...which gives weight and backing to the understanding they have with management. In the past they would convert 100% of all lending immediately and sell on market. Prior to signing their agreement with INT they did a substantial amount of DD and are obviously happy with the prospect of holding stock in our business over time.

On a final note, I must commend management in the way they are going about running this business now. Whilst I was very public in my stand against Evans and some proposed changes he was looking to implement on his appointment, I am very pleased to say that I believe that he is an asset to our business. He is certainly a numbers man who truly understands cash flow and other financial issues as they affect our company.

Best of luck with your investment guys.

Kiril.

I hold.