Ann: Company Announcment re Half Year to Dec 2012, page-15

re: Ann: Company Announcment re Half Year to ... Had a better look through the accounts and I think ABV will need money. Possibly grants will come in but they are time consuming and with State and Federal politics who knows?

They may be able to get some from increased loans but I think the whole point of being listed is they will raise via sophisticated investors before Sept and possibly before June depending on cash flow.

They intend to carry more parts , inventory , have new line of product and also intend to supply 10 units as test beds so they can get real life data ( quite a bit of this will will come back via R&D but quite a bit later?)and there will be a test period of XX months. Then evaluation and negotiations will start and no doubt after that there will be a contract to gradually introduce units onto new trucks as the fleet gets renewed or will they chase the retrofit on that model truck already in the fleet? There is no huge trail of profitable spare parts as the units are so well built and wear so well. Couple of years down the track they will get more of that trailing parts profits.

Strong Aussie dollar is killing OS sales in real Aussie dollars but if they can see more locally it works with the Thai manufacturing.

Lots to like about the engineering but just a bit wary about them getting enough penetration at a high enough up front margin as sales will be lumpy due to the way companies replace fleets in non mining areas.

Guess the question is - are they better to raise some cash early and dilute holders or pay high interest or simply leave it a while and see how the cash flow goes?