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show the dramatic shift from a 10% loss in 2006 to meltdown in 2007, and this extract from the Chairman’s statement in the accounts put the Giunti acquisition in context:

“Earlier this year the Company embarked on a move from our traditional direct selling model to that of a partnership distribution model whereby the Company would leverage off existing client relationships.
Unfortunately the take up by partners was slower than forecast and as a result the Company has been forced to reassess its strategic direction and funding requirements. Consequently HarvestRoad is looking at a number of commercialisation options in relation to its product suite, assets and intellectual property as was advised to the market on 4 September 2007. These include:
* Continuing to negotiate a global marketing agreement with BAE Systems, its cornerstone customer for the “Distributed Publishing – Electronic Publishing Support System” as part of an overall services solution.
* Discussions with other interested parties in providing solutions in the defence industry markets particularly in the UK and Europe.
* Looking at joint venture partners or parties interested in acquiring our existing HarvestRoad Hive Learning Object Repository software to help leverage a total solution commercialisation strategy on a global basis.
In the meantime we continue to manage our direct sales and existing partner resources to deal with our priority activities and successes in the US, French, UK, Norwegian and German markets and some very exciting opportunities with the State of California and the ministries of Defence in NATO.
The directors remain confident that the HarvestRoad Hive intellectual property rights, the HarvestRoad branding
and its market positioning has significant value which is expected to be realised in the next six months.
I thank shareholders for their continuing support and my fellow directors and our dedicated management and staff for their ongoing contributions.
John McConnell
Chairman”