Ann: MPS Contract Awarded , page-24

HTI followers,

Sorry to take so long following up my questions to Mr Gray. As previously mentioned, he was away when I first emailed the company and then I was a little slow with my follow up. I had to clarify something before posting his response here.

So with regards to the previously mentioned questions Mr Gray's responses are as follows:

"With regards to the announcement of Dr Lung?s appointment as CEO, you may recall that he is already well known to Shareholders having attended our last AGM and his most impressive resume was posted on the ASX and our website upon his appointment as a Director in February 2010. http://www.hydro-usl.com/pdfs/2010/feb/Appoinment%20of%20Dr%20Francis%20Lung%2001022010.pdf

However, Dr Lung is a modest man and does not appreciate the ?ra ra ra? of brass bands and cheerleaders.

With respect to JT Waterproofing this is an old relationship with a company headed by a gentleman called Mr Han who has worked very hard for us over the years to try and secure some major contracts. Hopefully his persistent efforts are starting to bear fruit. In addition to Mr Han, we have 6 other agents, 5 of which are based in Guangzhou Province which by any standards is a country in itself with a population of 60 million.

A number of shareholders have written to me about potential funding problems which I alluded to in my Chairman?s Statement which was released with the midyear accounts. We are busy working on a number of solutions as to how to finance our current unanticipated growth whilst at the same time continuing to be flooded by business enquiries. All of these issues I shall refer to in my next Shareholder Communication."

Thanks for being patience guys, I'm looking forward to the next instalment of contracts when they arrive! Hopefully soon.

Pete