Ann: Market Update, page-2

This seems like a reasonable update. 1.2 to 1.4 m always looked optimistic after no profit in the first half. Management seem optimistic around Urgent and the mention of expanding business from current customers is positive. It sounds like stat seeker is still struggling, however, if Urgent is successful it alone should be worth more than the whole market cap of TCN*.

Many small caps are unpopular at the moment* and my little portfolio of cheap and hated small has been going down across the board. I feel TCN fits this bill as well. My little group that looks cheap and hated includes: TCN, EAX, SDI, GBT and TGA. Will be interesting to see what the returns of this portfolio will be over the next few years - at the moment it is bleeding red ink. I just included these in the TCN discussion because I think some of weakness in the SP can be attributed to market trends as well as business performance.

Curious to hear others thoughts and views, but Urgent seems as if it may turn into a pretty reasonable business (though ERST is fairly poor quality).

*MC - cash = about 10m
*Though small caps may stay unpopular for an extended period