Ann: Response to ASX Query, page-11

Its interesting that WayneReid didn't respond to the letter addressed to him. Wonder if he even saw it.

Its also interesting that they used the old ruse of "pretending its at citicorp" Citicorp is so big their left hand would have no idea what their right hand is doing so there is a good chance you might get away with handling the truth badly.

Reminds me of the Italian Parmalat LTD who had a deposit of $4.3 Billion US with Citicorp on their balance sheet. The president of citicorp happened to read Parmalats accounts and reckoned if anyone had a deposit that big with them someone should have told him.

On investigation it didn't exist. The auditors asked the CFO of Parmalat to send a confirmation request to Citicorp. He went into the other room signed it and faxed back to the auditors so the story goes.

Hopefully our auditors haven't been as easily tricked but one has to wonder given The Founding Father secretly selling 12 cents in the bank for 3 cents in the hand.

Its a bit of a mystery because the business definitely seems to be there.

Maybe its not as profitable as its been made out to be.

Maybe the founding directors didn't do their due diligence properly and XPD LTD doesn't really own it.

Who knows. I've written my holding back to zero so if anything comes back it will be a bonus.