Introduction

Good morning ladies and gentlemen. On behalf of your Board of Directors and the management of Iatia Ltd I would like to welcome you to the third Annual General Meeting of Iatia.

I think your directors will be well known to most of you, but for those of you for whom this is your first attendance at our AGM let me introduce Mr. Vincent Thiang, your Deputy Chairman, Mr. Brian Powell, and Mr. Felix Thiang, who is also the Chief Financial Officer and Company Secretary. Our fifth Director, and the inventor of our technology, Professor Keith Nugent, is unable to be with us today, and extends his apologies. Keith is currently returning from the USA where amongst other business and academic commitments he has met with a prospective Iatia client. I would also like to introduce Mr. Charles Laycock, our Chief Operating Officer.

At our 2003 Annual General Meeting a year ago I outlined a course of action for the year ahead that included:

• Seeking new business and market opportunities for our core QPI technology
• Pursuing an application to the Department of Defence for up to $2.7 million from the Department's CTD program for research into certain defence and homeland security applications
• Continuation of the stringent cost control discipline commenced in 2002/03
• Improving market sentiment towards Iatia so as to rejuvenate our share price, and
• Expanding our capital base by increasing the number of shareholders and our issued capital by obtaining additional sources of capital

I am pleased to be able to say today that we have made successful advances in all the above endeavours.

I will not talk at length about business opportunities, markets and the year ahead as this is the subject of a separate presentation by Mr. Felix Thiang and Mr. Charles Laycock. However, let me make a few points concerning a number of significant developments.

Business and market opportunities

During the year the company changed its strategic direction from the direct marketing of its product into the microscopy industry to focus primarily on a OEM and sub-licensing commercialisation strategy to a broader market. This enabled us to apply our technology to a wider range of new applications and industries and allowed us to better utilise our competitive advantage of having a unique product and being first into the market. Our technology targets significant global markets and can be used in a broad range of industrial applications by adding value to a wide range of existing and new products.

This new strategy has led to a number of recent successes including:

• A research agreement with Xradia, a United States company that designs and manufactures a unique portable laboratory x-ray microscope. This research agreement will hopefully lead to a license agreement.
• A license agreement with HREM, a Japanese software company specialising in electron microscopy applications. HREM has now launched a new product incorporating our technology and we expect to receive a steady sales income from this license agreement.
• A license agreement with General Electric Healthcare, a US $14 billion division of the giant General Electric multinational. General Electric Healthcare are now including our technology in a new product which is used by the biotech, pharmacology and related industries. This agreement is of particular value to Iatia not only because of its expected monetary value but also because of the credibility gained from being used by General Electric in one of their products and because it opens a new niche market.

Our continued efforts in the area of defence and homeland security have paid off with the company being awarded a Department of Defence CTD program worth up to $2.7 million over three years. The long-term benefits of this program could be very significant for your company. Although we still have to finalise a contract before this program can commence, we are hopeful that this will be happen in the near future so we can begin work in this very exciting area.

Income and operating expenses

For the year 2002/2003 we had an operating loss of $3,500,000. This year the loss was $1,018,000. Although an improvement it is still not the result that we would like to report. We do, however, expect to see a further improvement in the company's performance over the coming twelve months.

In 2002/03 we made major reductions in operating expenses in order to conserve precious capital resources. We continued to exercise stringent cost discipline in 2003/04. I am pleased to say that we achieved this without affecting the value of our assets or our ability to implement our corporate strategy.

Share price and capital structure

We also embarked upon a program of capital raising to fund the company until it is able to generate sufficient cash flow to pay its own way. During the last 12 months we have raised $650,000 through placements.

Recently, with the support of a broker we arranged for the exercise of $300,000 of 5c options by 50 new investors. Combined, these transactions raised $950,000 in new capital for the company.

These transactions have ensured that Iatia has sufficient cash, when combined with the CTD program and expected sales, to continue its R&D and commercialisation programs. In fact there are good reasons to expect that when the CTD program commences the company will, with expected sales revenue, become cash flow positive. This will be a very important milestone in the development of your company.

In May of this year our share price hit an all-time low of two cents. At about the same time we instituted a program of investor relations to improve our communications with shareholders, stockbrokers and the investment market. This program included newsletters, announcements, a revamped website, a new format annual report and stockbroker and fund manager briefings. You will no doubt have been as pleased as your Board to see the significant recovery in our share price which is now trading in the eleven to twelve cent range. At the same time, there has been a corresponding increase in stock turnover which is generating a steady expansion of our shareholder base. Although we still have a long way to go to recover to our listing price of 25 cents we are now trending in the right direction.

It is our intention to continue with this investor relations program so as to increasingly better inform the market about our potentially exciting prospects.

Brian Powell

Recently Brian Powell retired as CEO and Managing Director. Brian took on the role of CEO in late 2002 under extremely difficult circumstances and has restructured the company, implemented a new corporate strategy and guided the company through trying times. He has been instrumental in Iatia gaining the CTD program grant. He has done all this with quiet determination, in good humour and at a remuneration well below the going market rate. Managing small advanced technology companies in Australia is never easy. Brian deserves our deep appreciation for his role in helping steer the company away from major financial danger and preparing it for the future. Thank you Brian for this magnificent contribution to our company.

The year ahead

This year we can look forward with confidence to the year ahead, knowing our new marketing strategy is penetrating new markets and generating sales revenue. With our news and the knowledge that a number of companies are evaluating our technology for use in their products we can confidently anticipate welcome growth in sales revenue.

In addition we can expect the CTD project to bring in cash, help fund further development of our technology and assist in opening new areas of opportunity in the defence and homeland security markets.

With the cash raised from the recent exercise of options and the funds we expect to receive from the completion of the Moneylink placement agreement we anticipate having sufficient cash available to meet our expenditure requirements for the coming year.

With expected further announcements of commercial developments plus a program of market education we are hopeful of a continued improvement in our share price.

We are committed to setting realistic goals and achieving them, as this year's results have shown. Throughout the coming year we will continue to communicate, through market announcements and newsletters, our progress in meeting these goals and milestones.

We are justifiably proud of our Annual Report and believe that it contains an excellent description of our technology, markets, aims and objectives and as well as the required financial information. Please feel free to take extra copies and give them to people who you think might be interested in our company.

Thank you for your continued support of Iatia. I look forward to seeing you at next year's AGM.

I will now hand over to Mr. Thiang and Mr. Laycock for their presentation.