Vin, Diskane and GSW,I think that it may be worth reviewing the...

Vin, Diskane and GSW,

I think that it may be worth reviewing the nature of the manufacturer-distributor- retail chain. Unfortunately, there are many levels of distribution. It begins with a primary distributor that executes a distribution agreement with the manufacturer, in this instance, Sun Biomedical Laboratories Inc. The primary distributor then engages sub distributors that may in turn engage others to procure/access new clients and product channels.

The problem for the manufacturer in this case is that it is usually the last to know about specific bulk sales or successful tender processes as has recently occured in Latvia courtesy of Diskane and his/her iniatives. The sole responsibilty of the manufacturer is to supply product. Start and finish of it. But in the case of SBN, it is also a public company that has a statutory responsibility to keep the market informed in respect to material events and outcomes relating to the listed entity.

In the case of SBN,the communication flow between primary distributor and SBL (US) and then SBN (Aust) would appear to be relatively inefficient as indicated by the events of this morning re the successful tender of the primary distributor in Latvia. The point here to make is that tenderer was in fact SBL's primary distributor and not SBN, the listed entity. It is a fine line but I would think that given the current level of activity in the current batch of SBL distributors, the management of SBN need to be able to access this sort of information expediently so that the apparent lag does not make them look a little foolish!

It is good news that so much is happening but the indicators are there for SBN management to do some fine tuning!

Cheers