2001 ASX Announcements

RESPONSE TO ASX QUERY

We refer to your letter concerning the use of cash raised from the Prospectus. Attached is a brief statement for release to the market concerning the Company's use of funds raised under the Prospectus.

S Brown
FINANCE DIRECTOR

USE OF CASH RAISED UNDER THE PROSPECTUS

The Company has used the Cash raised under the Prospectus dated 7 July 2000, in a way which is consistent with the stated business objectives under the Prospectus.

The two main use of proceeds stated under the Prospectus were International Expansion and Research & Development. During the year ended 30 June 2001 the Company had expenses of approximately $2.4 Million for international expansion ($3.5 Million allocated in the Prospectus) and $1.7 Million for Research & Development ($1.6 Million allocated in the Prospectus). The Company has continued to invest into these areas in the current financial year.

ASX QUERY

We refer to the Company's Annual Report for the period ended 30 June 2001, lodged with the Australian Stock Exchange ("ASX") on 24 September 2001 (the "Annual Report").

Listing rule 4.10 sets out additional information which is required to be included in a Company's annual report as indicated in the following extract from the Listing Rules.

LISTING RULE 4.10.19

4.10
An entity must include the following information in its annual report. The information must be current at a date specified by the entity which is no more than 6 weeks before the report is sent to security holders.

4.10.19
In its first two annual reports after admission, a statement about whether the entity used the cash and assets in a form readily convertible to cash that it had at the time of admission in a way consistent with its business objectives. If the use was not consistent, an explanation of how the cash and assets were used. The statement in the first annual report must be for the time between admission and the end of the reporting period. The statement in the second annual report must be for the whole of the reporting period. This rule applies to an entity admitted under rule 1.3.2(b) and an entity required to comply with listing rule 1.3.2(b) because of the application of listing rule 11.1.3.

Following a review of the Company's annual report it appears that the Company has not provided the information required by listing rule 4.10.19.

1. ASX requests that the Company provide the information required by listing rule 4.10.19.

2. ASX also requests that the Company confirm that it is in compliance with the listing rules and, in particular, listing rule 3.1.

Your response should be sent to me on facsimile number (02) 9241 7620. It should not be sent to the Company Announcements Office. Unless the information is required immediately under listing rule 3.1, a response is requested as soon as possible and, in any event, not later than half an hour before the start of trading (ie before 9.30am EDST) on Friday 21 December 2001.

The response must be in a form suitable for release to the market. If you have any concern about release of a response, please contact me immediately.

LISTING RULE 3.1

Listing rule 3.1 requires an entity to give ASX immediately any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity's securities. The exceptions to this requirement are set out in the rule.

In responding to this letter you should consult listing rule 3.1 and the guidance note titled "Continuous disclosure: listing rule 3.1".

If the information requested by this letter is information required to be given to ASX under listing rule 3.1 your obligation is to disclose the information immediately.

Your responsibility under listing rule 3.1 is not confined to, or necessarily satisfied by, answering the questions set out in this letter.

TRADING HALT

If you are unable to respond by the time requested, or if the answer to question 1 is yes and an announcement cannot be made immediately, you should consider a request for a trading halt in the Company's securities. As set out in listing rule 17.1 and the guidance note titled "Trading halts" we may grant a trading halt at your request. We may require the request to be in writing. We are not required to act on your request. You must tell us each of the following.

* The reasons for the trading halt.
* How long you want the trading halt to last.
* The event you expect to happen that will end the trading halt.
* That you are not aware of any reason why the trading halt should not be granted.
* Any other information necessary to inform the market about the trading halt, or that we ask for.

The trading halt cannot extend past the commencement of normal trading on the second day after the day on which it is granted. If a trading halt is requested and granted and you are still unable to reply to this letter before the commencement of trading, suspension
from quotation would normally be imposed by us from the commencement of trading if not previously requested by you. The same applies if you have requested a trading halt because you are unable to release information to the market, and are still unable to do so before the commencement of trading.

If you have any queries regarding any of the above, please let me know.

David Barnett
SENIOR COMPANIES ADVISOR

Direct Line: (02) 9227 0520