4 June 2012 Dear Fellow Shareholder THE SAME BAD NEWS – KIT DIGITAL DEAL DOES NOT DELIVER VALUE VISIT WWW.ANEWHYRO.COM FOR MORE INFORMATION
Today’s revision by KIT Digital of some of the terms of their proposed takeover of Hyro’s Business does not change the MAJOR concerns that we have expressed on this deal. Last week I published the attached letter following the Board’s decision to dismiss my proposal in favour of the KIT Digital offer. THE DEAL FROM KIT DIGITAL REMAINS FLAWED!! • WHY SWAP YOUR INVESTMENT IN HYRO’S BUSINESS FOR AN INVESTMENT IN A TROUBLED NASDAQ COMPANY. • KIT SHARES HAVE FALLEN 70% SINCE THE DEAL WAS ANNOUNCED. • THE SHARES ARE TRADING AT A 12 MONTH LOW OF $2.95. • WHY SELL THE COMPANY’S ASSETS FOR KIT SHARES AT A VALUATION OF $8.57 WHEN YOU CAN BUY THEM ON THE MARKET FOR $2.95. • THE PROPOSAL IS NOT AN EXIT. EVEN UNDER THE REVISED PROPOSAL 90% OF KIT SHARES REMAIN LOCKED UP FOR 6 MONTHS AND THE BALANCE FOR 12 MONTHS. • NO REAL CASH ON SETTLEMENT
To prevent the destruction of shareholder value we are asking fellow shareholders to take action by voting AGAINST the sale to KIT Digital and the unjustified and substantial financial rewards to Votsaris and Poiner. Vote AGAINST resolutions 4, 5, 6, 7 and 8. The Hyro Board have now delayed the AGM.
We maintain our position that the current deal is a very bad one and I am asking shareholders who support saving our company from a disastrous deal to appoint me, Gary Cohen, as their proxy.
If you have already submitted your proxy in our favour you do not need to do anything more.
If you have not submitted your proxy or wish to change it in our favour you can re-lodge your proxy form and now is the time to act. All you need to do to vote AGAINST resolutions 4, 5, 6, 7 and 8 is: • Complete and return your personalised proxy form that was mailed to you by Hyro OR • Vote online at www.boardroomlimited.com.au/vote/hyroagm2012. You will need to enter your personalised reference numbers that can be found on your proxy form OR • Fax your proxy form to +61 2 9290 9655
For your vote to count it must be received no later than 2pm Sydney time on Wednesday, 13 June 2012. For more information please visit our website at www.anewhyro.com If you have any questions or need any help completing your proxy form, please contact the information line on 1300 788 737. Sincerely
Gary Cohen Chief Executive Officer Marcel Equity Pty Limited
HYO Price at posting:
45.0¢ Sentiment: Sell Disclosure: Held
