what the heck, page-19

Vayama,

Actually your listing the facts was more a selection of facts, due to the omission of others; but that is okay as you seemed side-tracked telling us all how clever you are;

- Yes, there are 126 m share on issue but 20% of those are effectively cash earmarked for acquisitions, with six currently in target (as per Business Week interview last month, four in Asia two in Australia). Given these are likely to be private businesses at usual PE of around 5 to 7 one would expect them to be EPS accretive as well as opening new channels for distributing their expanding product range.

- Revenue growth has been satisfactory for four years now and the cost issues with third party sterilization are transient in nature, some customers may leave, others will sign up through ongoing tenders. The market of which they have 25-30% is forecast by most industry players to grow to $700m over the next 7 years. Having recently tripled production capacity seems like a reasonable indication of confidence to capitalize on that over the next decade.

- In addition their new Sterilization units may add revenue streams due to clear bottle necks in Australia.

- That is just the Hospital Supplies, all the while the Innovative Products division have long term relations ships with the likes of Bio Meireux, Baxter, Fresenius, etc, etc with a 25 person strong research and development team and four new product families in the pipeline one of which is already being trialled by Fresenius and could add millions to the bottom line alone. They have a strong position with this market in Asia that will improve with acquisitions in countries neighboring Malaysia.

- My average holding time for a stock is around seven so when day-traders like yourself tell me to "get a grip" when I suggest buying into bad news (which I enjoy equally as much as selling into great news) did little more than amuse me.

- Lastly, yes the biggest concern is that there appeared to be a leak but that is speculation really, the business is in touch with so many other parties in dealing with their sterilization issues that I think it would be unfair to assume it came from the top. The level of on-market purchases from management over the last twelve months has shown, in my view, very good commitment.

Regards,
fallen

PS Hold a few, but won't add unless we see sub-30 cents but judging by the buy support that probably won't happen unfortunately...