RAIDEN RESOURCES LIMITED — Interim / Quarterly Report 2003

Mar 13, 2003

MEDICAL MONITORS LIMITED $(ACN: 009 161 522)$

AND CONTROLLED ENTITIES

CONSOLIDATED HALF-YEAR ACCOUNTS

31 DECEMBER 2002

MEDICAL MONITORS LIMITED AND CONTROLLED ENTITIES

Directors Report

The Directors present their report together with the consolidated financial report, for the half-year ended 31 December, 2002, and the auditor's review report.

DIRECTORS

The directors of the Company during or since the end of the half-year are:

Dr Jerome Goldberg (Chairman) Mr John Genner Mr Harry Platt Dr Allan Shell

Operating Results

The Company received sales revenue of $431,772, for the half year to 31 December 2002, and posted a consolidated loss after tax of $1,596,755 (including an amortisation charge for Intellectual Property and Goodwill of $541,198). This compares to a net loss of $2,242,596 for the same period in 2001.

Review of Operations

Over the past half year, the Company has implemented a number of cost reduction strategies in consolidating its operations, both in Australia and overseas. During that time, it has created significant sales opportunities for Wellness Monitoring, Inc., its wholly owned subsidiary in the USA. In addition, Care Medical Limited, the UK joint venture company, has established strategic alliances within the National Health Service (UK) and with a number of international pharmaceutical companies in commercialising Medical Monitors' technology and services.

The review summary includes:

• Medical Monitors' wholly owned USA subsidiary, Wellness Monitoring, has been $\blacksquare$ approached by a major US-based pharmaceutical company to provide BPfoneTM units for a planned blood pressure drug evaluation trial. This trial is expected to monitor patients to evaluate the effects of the drug. As previously stated, multi level 'drug evaluation trials' provide another significant sales opportunity for the BPfone.
• $\blacksquare$ Wellness Monitoring has also been active in a number of other market segments, specifically the consumer health segment. Negotiations have been continuing with a major US pharmaceutical company to provide blood pressure monitoring for that company's consumer population. A first phase monitoring program is anticipated to be set up and running in the March 2003 quarter.
• The prestigious Johns Hopkins hospital group, of Massachusetts, has successfully completed its first contracted clinical trials with Wellness Monitoring. Further joint cooperation is anticipated, with the potential to evaluate new drugs and therapies on

behalf of a number of the major CRO's associated with the hospital.

• Being a major prize winner in the UK National Health Service (NHS) sponsored "2002 $\blacksquare$ Healthcare IT Effectiveness Awards" for the Best Use of IT in Primary & Community Care has created significant interest from both private sector healthcare companies and the NHS for BP fone to provide monitoring services as part of the UK Medicines Management Program.
• $\blacksquare$ Care Medical Limited, the UK joint venture company for Medical Monitors, has recently contracted with the Channel Isles Primary Care Trust, in partnership with a major pharmaceutical company, to provide the BP fone blood pressure monitoring system for the medical community. It is anticipated that the pharmaceutical company will expand this trial program to an UK-wide in the coming months.
• The previously announced sale to AstraZeneca Pharmaceuticals (UK) was one such trial $\blacksquare$ program that has resulted in a nation-wide rollout of the BPfone for 2003. A number of other trial monitoring sites have been established throughout the UK, with major pharmaceutical companies, and it is anticipated that these will proceed to future sales contracts.
• $\blacksquare$ Bosch $+$ Sohn have finalized the next phase of manufacture of BPfone blood pressure units in preparation for the fulfilment of sales contracts currently under negotiation Bosch $+$ Sohn intends to undertake the distribution and marketing of the BP fone and service into Europe.
• $\blacksquare$ As previously stated, Bosch + Sohn has specialised in quality blood pressure instrumentation, over the past 35 years, and is the leading blood pressure monitoring product distributor in Europe. Bosch $+$ Sohn see the Medical Monitors technology as an important step in maintaining their number one position in the market.
• A BPfone monitoring service has been commissioned in Kuala Lumpur with HMS Monitoring Service, the Malaysian provider, and has already been contracted for an evaluation trial with the Gleneagles group $-$ a premier private health care institution. Discussions are in progress with some of the major pharmaceutical companies for similar trials. It is anticipated that these strategic alliances will provide opportunities for further business into Singapore and Hong Kong, and then other countries in Asia.

Subsequent Events

• As approved at the Annual General Meeting, held 29 November 2002, a Private Placement of $350,000 has been received. A total of 9,999,879 fully paid shares have been issued and quoted on the ASX as of 23 January 2003.

• $\blacksquare$ The Company received $317,418, in January 2003, from an Australian Government / Ausindustry R&D grant, in relation to eligible research and development activities carried out in the previous financial year.

• The Company has received an initial payment of $60,000, in February 2003 from $\blacksquare$ Austrade's EMDG program (Export Market Development Grant). This program provides assistance with marketing and promotional expenses for Australian companies seeking to develop export markets.

• $\blacksquare$ In Australia, several major pharmaceutical companies have been evaluating the BPfone Service for use in general practice based blood pressure management programs. Sales contracts have been negotiated with a number of these companies, with revenue expected to be generated in the March 2003 quarter.

In addition, the Company has secured a $600,000 'line of credit', through Provident Capital, specifically for manufactured inventory. This will allow for more efficient use of working capital and will provide the Company with the necessary funding to build inventory as and when required.

Finally, the combination of monies raised from private placement, the completed sales of mining assets, the recent Shareholders Share Placement Scheme and the anticipated sales revenue, provide a sound financial base for the Company to continue with its current sales and marketing program in Australia and overseas.

PARTICULARS OF DIRECTORS

Particulars of the qualifications and experience of the Directors are:

Dr Jerome GoldbergChairmanDirector since 18 June 2001Age 46	Dr Goldberg is an Orthopaedic Specialist and VMO to thePrince of Wales (Public) Hospital and Prince of WalesPrivate Hospital. He is a clinical lecturer in OrthopaedicSurgery at the University of NSW and is Co-Director ofthe Prince of Wales Hospital Orthopaedic ResearchLaboratory.
Dr Allan ShellManaging Director &Chief Medical OfficerDirector since 18 June 2001Age 53	Dr Shell has over 25 years experience in clinical medicineas a medical practitioner in private practice, and in privateand public hospital systems in Australia and the UK. Healso has significant experience in telemedicine and relatedtechnology products for the healthcare sector.Dr Shell is a Board member, and a member of theMedical Executive, of a private hospital in Sydney. He isalso a member of the Royal Australian College ofMedical Administrators and a member of the EasternSydney Division of General Practice – and, as such, has arelationshipwithotherrelevantclosemedicalassociations.Dr Shell is responsible for the day-to-day activities of theCompany and operation of the monitoring service.
Mr Harry PlattOperations DirectorDirector since 18 June 2001Age 48	Mr Platt has more than 20 years experience in thedevelopment and management of technology projects andhas a background in biomedical technology consulting.During this time he was the chief executive of a computercompany and more recently the operations executive ofan ASX-listed medical technology company that he co-founded. He has consulted to several major medicalcompanies in the area of cardiac technology and hasconducted, and published,cardiacresearchinelectrophysiology and monitoring.Mr Platt is responsible for management and productdevelopment. In addition, he provides ongoing advice onthe technical direction of the Company.

Mr John Genner	Mr Genner has a background in finance and accounting.For approximately 9 years he was the chief executive of anational mortgage insurance company. For approximately16 years he has operated as a private investor and
Non-Executive DirectorDirector since 18 June 2001
Age 63	company director.Mr Genner is Chairman and CEO of the ASX listedAustralian Banque-Tec Limited.

Directors' Meetings

The following table sets out the number of Directors' meetings held during the financial year and the number of meetings attended by each director.

Directors	Held	Attended
Dr Jerome Goldberg *	$\mathcal{L}$
John Genner *	к.
Harry Platt	5
Dr Allan Shell	5

* Members of the Audit Committee. An Audit Committee meeting to consider the 31 December 2002 Half-Year Financial Report was held and attended by both Audit Committee members on 3 March 2003.

Signed in accordance with a resolution of the Directors.

$\begin{matrix} 2 \end{matrix}$

Dr. Allan Shell Director

Sydney, 12th March 2003

DIRECTORS' DECLARATION

In the opinion of the Directors of Medical Monitors Limited:

• The financial statements and notes, set out in the form of Appendix 4B is in $(a)$ accordance with the Corporations Act 2001, including:
  • $(i)$ . Giving a true and fair view of the financial position of the Company and Consolidated Entity as at 31 December 2002 and of their performance, as represented by the results of their operations and their cash flows, for the year ended on that date; and
  • $(ii).$ Complying with Accounting Standards AASB 1029 "Half Year Accounts and Consolidated Accounts" and the Corporations Regulations 2001; and
• There are reasonable grounds to believe that the Company will be able to pay its (b) debts as and when they become due and payable.

Dated this 12th day of March 2003

Signed in accordance with a resolution of the Directors.

$\begin{matrix} 2 \end{matrix}$

Dr Allan Shell Director