Ferret's Stock to Watch: AUSTRALIS AQUACULTURE LTD 09:06,...

Ferret's Stock to Watch: AUSTRALIS AQUACULTURE LTD
09:06, Friday, 7 April 2006

BARRAMUNDI GIVES SALMON A SWIM FOR ITS MONEY IN NORTH AMERICA

Sydney - Friday - April 7: (RWE Aust Business News)
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OVERVIEW
********

Aussie barramundi is taking American and Canadian fish eaters by
storm if the figures just released by Australis Aquaculture for the
December half are any guide.

The company has reported growth of US barramundi sales up 60 per
cent at $905,660 for the March quarter.

The results indicate the company could soon be turning the corner
into profit in the next 12 months.

Barramundi sales for the month of March increased to 35.7 tons.

The barra is now sold in 400 supermarket stores across the USA
and Canada.

Managing director Stewart Graham says fish sales are 40 per
cent above its previous best.

Much of this growth has come from the execution of the company's
marketing plan to establish a presence in the retail sector, via the
first significant sales to supermarket chains.

Building on its already strong presence in the 'white tablecloth'
and live fish markets, Australis has successfully
implemented its strategy to penetrate multi-unit supermarket chains.

"Australis barramundi is now being sold in four chains
representing more than 400 stores across Canada and the USA," Mr Graham
said.

"Another high-quality chain, servicing New York to Washington DC
with 70 stores, has reserved an allocation of fish, with sales to
commence in April."

Discussions with other regional and national supermarket chains
are also progressing as planned.

Australis can now offer the volume and quality of product
demanded by major retailers and restaurant chains.

Its near-term marketing efforts will include a focus on the
multi-unit restaurant sector, which is underrepresented in the company's
current sales mix.

Demand from Australis's existing 150-plus distributor network has
also risen following intensive sales and marketing efforts, including the
International Boston Seafood Show, NY Restaurant Show and Miami Food &
Wine festival.

Australis has made a $10 million investment in its facilities,
proprietary systems and technical expertise to create inventory and
engineer the flavour and texture of the fish to meet the discerning
tastes of the US market.

This has taken eighteen months of fine tuning which is now
being recognised by its customers.

Plant expansion, which started last year, had been slowed in
March to confirm demand from the retail sector.

Australis is now confident that its sales will continue to grow
strongly in these progressively broadening markets, Mr Graham declared.

SHARE PRICE MOVEMENTS
*********************

Shares of Australis Aquaculture yesterday eased 1.5c to 41c.
Rolling high for the year has been 79c and low 37c. The company has
41 million shares on issue with a market cap of $17.4 million.

In the half year to December 31 the company commenced expansion
of the Turners Falls plant in Massachusetts to an expected output of
1,000 tonnes per annum and continued with its increased production rate
with a total of about 170,000 kilograms of BioMass created during the
period.

Sales during the period totalled $1.19 million with the net
increase in fair value less estimated point of sale costs of fish stocks
pursuant to accounting for biological assets accounting under
Australian Accounting Standard AASB 141 'Agriculture' of $913,913.

Net loss for the period was $114,930 compared with $1.2 million
for the same period of 2004.

BACKGROUND
**********

Australis Aquaculture joined the Australian Stock Exchange list
on August 4, 2004.

Australis imports, grows and sells Australian barramundi, a
premium table fish for chefs and diners who want an elegant, healthy and
authentic Australian culinary experience.

Unlike traditional fish farms, Australis faithfully maintains the
pristine conditions of barramundi's native environment while
simultaneously protecting wild fisheries and the natural environment.

Australis is headquartered in Perth and operates an indoor
farming facility in Turners Falls. The company completed a highly
successful IPO in August 2004, and its stock has been one of the 50 best
performing new issues in Australia.

Given the size and scope of the company's operations the board
considers that it is appropriately structured to discharge its duties in
a manner that is in the best interests of the company and its
shareholders from both a long-term strategic and day-to-day operations
perspective.

During the start up phase of the company's operations the
board considered it a priority that its members had the necessary skills
and expertise to achieve the company's initial objectives.

The board was specifically structured to include the current
members, and is of the view that two out of four directors are of a
sufficient level of independent representation to achieve best practice
in corporate governance for the immediate future.

Backgrounds of board members are:

* Alistair Cowden, PhD, chairman. Dr Cowden has had a successful
corporate career in the start-up, management, growth and
financing of publicly listed companies. He has extensive corporate
skills and has been instrumental in the development of six companies.

* Stewart Graham, managing director. Mr Graham is a West
Australian businessman with a wide variety of experience. He has
assisted in and identified several public companies where he took an
active part in the capital raising and listing of their securities on
the Australian Stock Exchange.

* Joshua Goldman, US executive director - President US
Operations. Mr Goldman is a key pioneer of commercial indoor
recirculation systems and is known internationally in the aquaculture
industry. Mr Goldman brings to Australis over 20 years of technical and
practical experience in aquaculture management as well as considerable
knowledge of marketing fish products.

* David O'Sullivan, non executive director Mr O'Sullivan is an
aquaculturalist and marine biologist and is a recognised contributor to
many sectors of the Australian aquaculture industry. He also is the
proprietor of National Aquaculture Training Institute, which trains
personnel for the Australian aquaculture industry.

ENDS