firsthalf net profit up 44pc to 18.6m, page-13

from Stuart
Bit strapped for time today but the brief answers are:

a) Security was afforded over the assets of the group as the seasonal lines encompass both physical inventory with dedicated lines utilised to cover margin calls on derivatives used for pricing risk management (ie cotton futures). Should those facilities be utilised the offsetting asset is the MTM value of the associated purchase or sale contracts which, to a bank, are not as secure as real property. Security was granted to have those particular facilities increased in line with predicted volume increases from forward crops. There is also a term debt (albeit largely undrawn) requiring security.

b) I will forward your comments on the website to our company secretary for attention. The Appendix 4D highlighted a record date of 12 November 2008 in respect of the upcoming 3.0 cent interim dividend.

Hope this assists in your deliberations.

Regards,

Stuart Greenwood
Chief Financial Officer
Namoi Cotton Cooperative Ltd