3rd quarter reort, page-3

re: 3rd quarter -don't go off half cocked! Before shareholders go to the AGm with both guns blazing, they should re-read the previous announcements as many of the points posed in the previous post can easily be answered.

For goodness sake, lets not go off half-cocked...

Most of the deals, acquistions and installations were completed post the 31 March.

As a result, their acquistion costs and their associated revenue will appear in the next quarterly report - how could they appear in the January to March Quarterly when it wasn't finalised until 5 April 2005???

On 3 february 2005, ETC advised that it was in the process of closing down the telecom Business Unit. naturally, this has had the effect of significantly reducing revenues for the quarter as well as overheads.

One does not have to be an accountant to know that it is impossible to make any claim about the "operating cashburn" in the current and future quarters until we understand the revenues, costs and margin generated from the 32,000+ rooms now under ETC management.

As of April 2005, ETC has executed a completely different business model and business strategy.

To what extent the new business model has turned around the fortunes of the company can only been sensibly evaluted at the end of the current quarter.

It is important to note that this type of business, that ETC has become, is typically valued on the basis of the number of revenue earning rooms under management. A value attributed to each room is approx $785.

Whatever, the past recriminations of the company under its previous guise, it may warrant a completely fresh evaluation.

At this time, I intend to hold my shareholding until I have reviewed the June Quarterly.