what...no one reporting back on the mtg?, page-6

Thank you Magooagain,

I am VERY interested in your comment that...

"Just quickly though, I feel much more positive about their current priorities and potential having been to that meeting."

I have felt that their business model has, at last, the potential to significantly turn around the company's fortunes.

On 3 May 2005 on the sharescene website, I said that (in particular, see point 13)...

Hi Ozgas,

Good to see sharescene back up again.

I have scribbled down some notes which I include here for your information.

It seems to be that the company is at a turning point in terms of execution of the business model / strategy together with an improved financial performance.

To poach a phrase that Owen Hegarty at Oxiana likes to use...the GalaVu sales pipeline and IHG untapped client base offers "ooddles of opportunity"

There is a lot of emotion out there ATM with this stock, and many traders may cause them to overlook the emerging realities. Time will tell whether management can control/contain the costs and post some strong cash flow results in the coming quarters.

I am only lightly invested in ETC but will consider increasing my position after the AGM.

It is my understanding that we can expect more deal in the near future with the IHG group.

1. ETC now operates 32,000 rooms using either the fully integrated digital VuScape system or the hybrid digital/RF GalaVu system.

2. ETC has acquired the business from GalaVu in early April 2005.

3. GalaVu achieved revenues in 2004 of C$5.2m from 26,000 installations across 200 hotels in Canada.

4. GalaVu had a North American sales pipeline of 15,000 rooms.

5. The GalaVu system is expected to reduce cost-per-room by between 25-50% thereby increasing the operating margin from each installation.

6. ETC achieved revenues of $396,000 (US: $384,000 and Singapore: $12,000) over a two-month period in late 2004 from 8 US and 1 Singaporean hotel in the Intercontinental Hotels Group (IHG). Average monthly revenue per IHG hotel is $25,000.

7. ETC has recently added a 9th IHG hotel – The Intercontinental Miami which has 641 rooms.

8. ETC has secured contract extensions with 3 premium properties with IHG

9. The IHG owns a portfolio of hotel brands and manages over 3,500 hotels and 534,000 rooms in nearly 100 countries.

10. ETC has completed the first GalaVu system installation in Australia at the Ridges Hotel, Bankstown.

11. As at 16 April 2005, ETC manages 1,605 rooms in Australia with additional sites already underway.

12. As at the half year, ETC posted revenues of $5,901,000 and a loss of $701,000. The above figures included revenues ($702,000) and expenses ($749,000) from the now discontinued telecom business unit. If we strip out the revenues and expenses of the Telecom Business Unit, we can see that ETC would have made a small profit.

13. Next Quarter, I expected revenues to be approx $3m comprising $1.3m (existing GalaVu clients), $675,000 (IHG) and $1m (Australiasia).