quarterly

Good revenue increase - rapidly approaching breakeven. And yet to come...


In response to the questions in your letter of today’s date (October 20):
1. Yes, there are two possible reasons, which, if known, could account for today’s trading in DDT shares.
2. No. An announcement cannot be made immediately in relation to either reason.
The first reason relates to the company’s Russian operations. In recent months, at the request of the Russian Government, the company has changed its Russian distributor. More recently the company’s CEO has been in Russia holding discussions with the new distributor and Russian Government. At present the company’s Australian-based Russian agent is in Russia holding further discussions with the new distributor and Government. The company is optimistic that this intensified activity in Russia will result in further orders for the company’s products, but at present has no definite information to this effect that can be announced.
The second reason relates to DataTraceDNA Pty Ltd, which, as announced on August 8, is to operate as a company owned jointly by DDT and the CSIRO to market DataTraceDNA, a new marker of bulk products and materials. DataTraceDNA Pty Ltd has recently concluded a distribution agreement for its product in China, which agreement will operate from the time that one-half of the company is formally transferred from DDT to the CSIRO. The consideration of this distribution agreement is $10 million, of which $500,000 has been received as a first installment. Execution of the transfer documents transferring one-half of the company from DDT to the CSIRO is expected to occur in the next week, as soon as the parties’ legal advisers inform the parties that the documents are complete. The company plans to announce the full details of the distribution agreement at that time.
3. No.
4. The company is in compliance with the listing rules and rule 3.1 in particular.
Yours sincerely,
Graham Loughlin
Company Secretary