We still have a significant amount of cash and with our burn rate, which averaged just over $100,000 per month for the 9 months ended March 31, 2008, we are able to undertake all of our initiatives without a need for further funds for some time. We will also be introducing new products soon to boost the cash flow.

We can afford to wait for better conditions before we undertake another financing and we can also cut back on discretionary activities, such as patenting and product testing. Of course those are important assets we want to keep in progress but we are in a very good position to sit out this storm.

Terry Owen