results of meeting, page-3

Bernard,

The problems with PGL have been a complex mess.

Our board terminated the pI88 ph3 trial without warning AND without any real or credible explanation, to this day.

Post the termination they seemed to just sit on their hands and our cash.

The PSG's call for an EGM got the board seemingly running around in circles. (more like chasing their tails really)

Refer to PGL ASX announcements since then.

Chairman Mal promised us an M&A deal worth in excess of $1.10 or a full capital return(approx $1.10) and goodbye PGL.

They have valued the deal with AVX on a share price for AVX @ .105 (=$1.35 for PGL shareholders ie. .105c*12.857)
BUT now AVX is at .074 that equates to .95.

As it stands at the moment I cannot see the AVX share price spiking because of the amount of uncertainty surrounding the voting required by both sets of shareholders.
(AVX needs 75% majority and PGL needs 50% majority.)
I reckon AVX sp would need to rise to about .12 and sustain that level up the voting time.

Another consideration is that if the merger were to go ahead, PGL will get a part capital return ($20mill) which is likely to be way oversubscribed. It is a pretty widely held view that the instos will be in for the cash back. Also a lot of buying of PGL since the AGM has been based on the capital return.

If more PGL shareholders than control 18mill shares opt for the cash back there will be a resultant overhang and this will put significant downward pressure on the sp of the new company.

From day 1 of the new company its cash reserves will start to reduce and, in my opinion, so will its share price. The risk associated with concentrating on the one product (ATC) will be constant until the first results come in.

Today's voting results are no surprise and if I were an AVX holder I would not be using it as a yardstick for the merger voting.

The above is merely my opinion.