Ann: Appendix 4C, page-13

They basically picked up around 50% of the market in Australia in 2 years. The expectation was they would do similar in the US. Thus the high valuation a year ago. The reality has been the US will be a longer slog, though we should still achieve significant market share. This difference has changed the valuation, especially given the high cash burn rate required to achieve that market share. CRs have diluted the holdings of everyone and taken the place of the SP gains. So valuation has taken a while to catch up to sales trajectory.

Key points, are that it is still held tightly by VCs and an insto has started buying.

I still remain of the view we will be taken out by a saline implant competitor, only after we have spent the marketing dollars to create the market for the device. Hopefully we won't be all shortchanged when that time comes.