annoucement - takeover holding

SUBJECT: Update on Discussions & Negotiations with US based OTC Bulletin Board Traded Company
Further to a request from a number of shareholders and the ASX for an update on the above, the Board of EMT wishes to advise that the preliminary discussions and negotiations referred to in its announcement of 16 June 2005 in respect to the above have not been concluded as yet. The Board has rejected the initial verbal and written proposals put forward as inappropriate or as inadequate and the US OTC traded company is now considering its position. When any significant progress has been made the Board will release a further update.
Meanwhile, the Board is also pleased to advise that it has been holding discussions with other parties in the US, Canada, Asia and the UK in relation to a possible significant corporate transaction, which may include the same type of transactions anticipated in the discussions with the US OTC traded company.
In recent weeks senior management have travelled to Asia, the US and Canada with the intention of confirming the credentials of each party and concluding a transaction that would most benefit shareholders. However, whilst the discussions to date have confirmed the serious intentions of the various parties and various proposals have been considered, some of which are reasonable advanced, no deals have been concluded or signed off by the Board as yet.
Two of the parties are expected to travel to Sydney over the next two weeks to progress their proposals further and to carry out due diligence work, at the conclusion of which a further update may be able to be released to the market.
Yours Faithfully
Peter Dykes
Executive Chairman