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ARIKA RESOURCES LIMITED AGM Information 2007

Dec 4, 2007

64420_rns_2007-12-04_f1b8a8fc-530e-4f5e-b78a-279ef2ce436e.pdf

AGM Information

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Announcement

Portland Orthopaedics AGM: US business strategy is working, margins improving

5 December 2007,Sydney: Presentations to the Portland Orthopaedics Limited (ASX:PLD) annual general meeting and answers to questions arising at that AGM contained key performance information including:

‥ US sales have grown 345% overall in the 12 months to Sep 07
‥ US surgeon users have grown 620% overall in the 12 months to Sep 07
‥ US sales generated through in excess of 15 distributors across the US
‥ US surgeon retention and clinical results are above expectation
‥ Move to outsourcing is working with significant margin improvements
‥ Released the Equator Plus cup in Jan 07 to supplement the M-COR hip replacement launched in Sep 06
‥ Strategy to continue strong new product innovation and “full bag” offering to surgeons by 2008/2009 is in place and milestones are being met
‥ The opening of Portland’s St Clair Michigan office in June 07

Delivery of first outsourced manufactured supply of hips and cups

Specialist manufacturer Orchid Stealth of Holt Michigan has delivered the first supply of M-Cor Stems and Equator Plus Shells under Portland’s outsourced manufacturing initiative.

The “made in the USA” products have passed Portland’s rigorous quality control testing procedures at its Matraville facility in Sydney and will be released into stock.

Portland managing director David Sekel said, ”The capacity shackles are now removed. We now have supply flow and lower cost products. Under the outsourcing arrangements we can buy three hip stems from Orchid for the same cost of us making one.”

Portland has achieved an increased gross profit, from 18% to 41%, over the past six months, and is expecting further improving margins with additional outsourcing. As well as better margins the outsourcing removes supply blockages due to previous capacity constraints.