RAIDEN RESOURCES LIMITED — Interim / Quarterly Report 2004

Feb 26, 2004

MEDICAL MONITORS LIMITED ABN 68 009 161 522 HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2003

Directors' Report

The directors present their report together with the consolidated financial report for the half-year ended 31 December 2003, and the auditor's review report thereon.

Directors

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

Dr Jerome Goldberg (Chairman)Director since 18 June 2001Resigned 8 December 2003	Dr Allan Shell (Managing Director and Chief Medical Officer)Director since 18 June 2001
Mr John Genner (Non-Executive Director)	Mr Boris Patkin (Executive Director)
Director since 18 June 2001	Director since 16 February 2004
Mr Harry Platt (Operations Director)	Mr Neville Buch (Executive Director)
Director since 18 June 2001	Director since 16 February 2004

Operating Results

The Company received sales revenues of $142.229 for the half-year to 31 December 2003, and posted a consolidated loss after tax, of $2,162,706 (including an amortisation charge for Intellectual Property and Goodwill of $728,400). This compares to a net loss of $1,596,755 for the same period in 2002.

Review of Operations

Over the past half year the Company has continued with a number of cost reduction strategies in consolidating its operations, both in Australia and overseas. Importantly, this has occurred without staffing reductions within our highly qualified specialist team.

Significantly, a number of projects have been undertaken that have progressed Medical Monitors' technology and services in the international markets. These include:

• Italy, where our JV partner with the Telesalute Monitoring Service has advanced discussions with research and $\bullet$ other interested pharmaceutical companies, for blood pressure monitoring programmes in Europe. Initial sale of BP fone# blood pressure monitors has already been booked.
• Wellness Monitoring, Inc., our wholly owned subsidiary in the USA, has completed a submission to utilise the $\bullet$ $BP$ fone $#$ blood pressure monitor and service, for a long term blood pressure monitoring programme through the prestigious Johns Hopkins University, in Baltimore. As previously stated, this study has the potential to provide new business opportunities, for sales of BPfone* monitors, to evaluate new therapies on behalf of other major CRO's associated with this University and other institutions.
• Wellness Monitoring, also continues its evaluation programme with a major US-based pharmaceutical company using the BP fone* monitors. This trial is monitoring patients to evaluate the effects of a specific drug for hypertension. Further sales are antic ipated from this project.
• As announced, the Company has appointed Prof. Bryan Williams as the senior medical advisor in the UK for an anticipated large scale blood pressure monitoring programme. A new facility has been established in Leicester, England, to undertake this and similar projects, which may ultimately flow into a UK-wide programme within the National Health Service. A number of international pharmaceutical companies been approached to sponsor this important project. Pfizer Pharmaceuticals has provided a letter intent to be one of the first major pharmaceutical companies to participate.

In Australia, three major pharmaceutical companies continue with their evaluation programmes with the $\bullet$ BP fone* blood pressure monitor and service, for use in general practice based blood pressure management programmes.

Subsequent Events

In February, 2004, the Company received an initial payment of USD$54,000 for providing a blood pressure monitoring service for a clinical programme at the prestigious Johns Hopkins University.

Directors' Meetings

The following table sets out the number of Directors' meetings held, for the period 1 July 2003 to 31 December 2003, and the number of meetings attended by each director.

Directors	Held	Attended
Dr Jerome Goldberg *		≺
John Genner*
Harry Platt
Dr Allan Shell

* Members of the Audit Committee. An Audit Committee meeting to consider the 2003 Financial Report was held and attended by both Audit Committee members in September 2003.

Signed in accordance with a resolution of the Directors.

Dr Allan Shell Director

Sydney 27th February 2004

Directors' Declaration

In the opinion of the Directors of Medical Monitors Limited ("the Company"):

• The financial statements and notes, set out on pages 4 to 16, are in accordance with the Corporations $(a)$ Act 2001, including:
  • (i). Giving a true and fair view of the financial position of the Consolidated Entity as at 31 December 2003 and of its performance, as represented by the results of its operations and its cash flows, for the half-year ended on that date; and
  • (ii). Complying with Accounting Standard AASB 1029 "Interim Financial Reporting" and the Corporations Regulations 2001; and
• There are reasonable grounds to believe that the Company will be able to pay its debts as and when $(b)$ they become due and payable.

Dated at Sydney this 27th day of February, 2004

Signed in accordance with a resolution of the Directors.

Dr. A. SHELL Director

Appendix 4D

Half Yearly Report

$\overline{a}$

MEDICAL MONITORS LIMITED

ABN or equivalent company

Financial period ended ('current period')

reference

68 009 161 522

31 DECEMBER 2003

For announcement to the market

				Six months to
				31 December 2003
				S
Revenues from ordinary activities	down	67 %	to	142,229
Profit (loss) from ordinary activities after tax attributableto members	uр	35 %	ŧΟ	(2,162,706)
Profit (loss) from extraordinary items after taxattributable to members)	gain (loss)
Net profit (loss) for the period attributable to members	up	35%	tο	(2,162,706)
Dividends (distributions)	Amount per security			Franked amount persecurity
Final dividend		Nile		Nil ¢
Previous corresponding period		Nil ¢		Nil ¢.
*Record date for determining entitlements to thedividend (in the case of a trust, distribution)		N/A

I

There are no dividend reinvestment plans in operation. No dividend have been declared or paid during the current or previous financial year.

Consolidated statement of financial performance

Revenue and expenses from ordinary activities	Six months to31 December 2003$	Six months to31 December 2002$
Continuing Operations
Revenue from sale of goods	80,178	360,156
Revenue from rendering of services	51,254	60,882
Interest revenue	5,797	3,303
Other revenue:
- Government Grants		7,431
Discontinuing Operations
Revenue from sale of mining interests	5,000
Total revenues from ordinary activities	142,229	431,772
Details of relevant expenses:
Continuing Operations
Changes in inventories of finished goods	(36, 130)	(326, 544)
Occupancy expenses	(89, 035)	(97, 230)
Staff expenses	(331,222)	(164, 840)
Administration expenses	(96, 244)	(347,200)
Consulting expenses	(432, 794)
Marketing expenses	(332,397)	(324, 320)
Other expenses	(107,272)	(98, 397)
Depreciation and amortisation	(728, 400)	(636, 822)
Borrowing costs	(146, 441)	(33, 174)
Discontinuing Operations
Cost of mining interests sold	(5,000)
Total expenses from ordinary activities	(2,304,935)	(2,028,527)
Share of net profits (losses) of associates and joint
venture entities
Profit (loss) from ordinary activities before tax	(2,162,706)	(1,596,755)
Income tax on ordinary activities
Profit (loss) from ordinary activities after tax	(2,162,706)	(1,596,755)

Profit (loss) from extraordinary items after tax	$\mathbf{r}$
Net profit (loss)Net profit (loss) attributable to outside + equityinterests	(2,162,706)	(1,596,755)
Net profit (loss) for the period attributable tomembers	(2,162,706)	(1,596,755)

There have been no non-owner transaction changes in equity during the current or previous corresponding period.

Earnings per security (EPS)	Six months to31 December 2003S	Six months to31 December 2002S
Basic EPS	$(1.15)$ cents	$(1.03)$ cents
Diluted EPS	$(1.15)$ cents	$(1.03)$ cents

Profit (loss) from ordinary activities attributable to members

	Six months to31 December 2003	Six months to31 December 2002
Profit (loss) from ordinary activities after tax	(2,162,706)	(1,596,755)
Less (plus) outside $+$ equity interests
Profit (loss) from ordinary activities after	(2,162,706)	(1,596,755)
tax, attributable to members

Consolidated retained profits

	Six months to31 December 2003S	Six months to31 December 2002S
Retained profits (accumulated losses) at the	(23,410,285)	(20,358,082)
beginning of the financial period
Net profit (loss) attributable to members	(2,162,706)	(1, 596, 755)
Net transfers from (to) reserves
Net effect of changes in accounting policies
Dividends and other equity distributions paid
or payable
Retained profits (accumulated losses) at end	(25,572,991)	(21.954.837)
of financial period

Consolidated statement of financial position	31 December 2003	30 June 2003
	Ś.	Ś,
Current assets
Cash	354,609	89,773
Receivables	7,301	151,229
Prepayments	454,611	417,240
Inventories	427,795	437,525
Total current assets	1,244,316	1,095,767
Non-current assets
Mining Interests		5,000
Other property, plant and equipment (net)	379,055	468,736
Intangibles (net)	5,764,537	6,324,478
Capitalised research and development costs (net)	696,316	1,041,207
Other	152,886	153,825
Total non-current assets	6,992,794	7,993,246
Total assets	8,237,110	9,089,013
Current liabilities
Payables	975,236	1,138,431
Interest bearing liabilities	751,735	986,660
Provisions exc. tax liabilities	40,243	23,287
Total current liabilities	1,767,214	2,148,378
Non-current liabilities
Interest bearing liabilities	651,197	771,330
Total non-current liabilities	651,197	771,330
Total Liabilities	2,418,411	2,919,708
Net Assets	5,818,699	6,169,305

Consolidated statement of financial position	31 December 2003	30 June 2003
	Ŝ	Ś.
Equity
Capital/contributed equity	30,898,538	29,086,438
Reserves	493,152	493,152
Retained profits (accumulated losses)	(25,572,991)	(23, 410, 285)
Equity attributable to members of the parententityOutside $+$ equity interests in controlled entities	5,818,699	6,169,305
Total equity	5,818,699	6,169,305
Preference capital	NIL	NIL

Consolidated statement of cash flows

	Six months to	Six months to
Cash flows related to operating activities	31 December 2003	31 December 2002
		S
Receipts from customers	139,183	436,412
Payments to suppliers and employees	(1, 421, 492)	(1,067,312)
Interest and other items of similar nature	5,797	3,303
received
Interest and other costs of finance paid	(146, 441)	(33, 174)
Net operating cash flows	(1,422,953)	(660,771)
Cash flows related to investing activities
Payment for purchases of property, plant and	(22, 957)	(302, 312)
equipment
Proceedsfromsale ofmininginterests	5,000	225,750
(discontinued operation)
Payment for Security Deposits	939
Proceeds from Government Grants	289,076
Loans (from) / to other entities		(204, 500)
Net investing cash flows	272,058	(281, 062)
Cash flows related to financing activities
Proceeds from issues of securities (shares,	1,722,039	519,001
options, etc.)
Proceeds from borrowings		439,000
Repayment of borrowings	(306, 308)	(62,985)
Net financing cash flows	1,415,731	895,016
Net increase (decrease) in cash held	264,836	(46, 817)
Cash at beginning of period	89,773	188,464
(see Reconciliation of cash)
Cash at end of period	354,609	141,647
(see Reconciliation of cash)

Non-cash financing and investing activities

Reconciliation of cash

Reconciliation of cash at the end of the period (as	31 December 2003	31 December 2002
shown in the consolidated statement of cash flows) to	S	S
the related items in the accounts is as follows.
Cash on hand and at bank	354,609	141,647
Deposits at call
Bank overdraft
Other (provide details)
Total cash at end of period	354,609	141,647

Earnings per security (EPS)

$\ddot{\phantom{a}}$

• Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share has been calculated as follows:
  • Weighted average of 188,456,535 fully paid ordinary shares over 183 days to 31 December 2003.

NTA backing	31 December 2003	30 June 2003
Net tangible asset backing per ordinarysecurity	$(0.32)$ cents	$(0.70)$ cents

Control gained over entities having material effect

Name of entity (or group of entities)

$NA$

Loss of control of entities having material effect

Name of entity (or group of entities)

N/A

Details of aggregate share of profits (losses) of associates and joint venture entities

There are no material interests held in entities which are not controlled entities

Medical Monitors Limited has a 50% interest in Care Medical Limited, a company incorporated in the UK. Care Medical has not traded from the date of its incorporation to 31 December, 2003.

Additional notes to Appendix 4D

1 Subsequent Events

In the USA, first phase payment of USD $54,000 (AUD $70,000) has been received for a specific blood pressure monitoring programme, at Johns Hopkins University, Baltimore. In Italy, further sales of BP fone units have occurred, to the Telesalute monitoring service, with Euro 10.000 (AUD $16.500) received.

$\overline{2}$ Basis of accounts preparation

a) Basis of preparation of the half-vear financial report

The half-year financial report is a general purpose financial report which has been prepared in accordance with the requirements of Accounting Standard AASB 1029 "Interim Financial Reporting", the recognition and measurement requirements of applicable AASB standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. This half-year financial report is to be read in conjunction with the 30 June 2003 Annual Financial Report and any public announcements by Medical Monitors Limited and its controlled entities during the half-year in accordance with continuous disclosure obligations arising under the Corporations Act 2001.

It has been prepared on the basis of historical costs and except where stated, does not take into account changing money values or fair values of non-current assets.

These accounting policies have been consistently applied by each entity in the consolidated entity and are consistent with those applied in the 30 June 2003 Annual Financial Report.

The half-year report does not include full note disclosures of the type normally included in an annual financial report.

Going concern ħ)

The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The consolidated entity incurred an operating loss of $2,162,706 during the half-year ended 31 December 2003, including an amortisation charge for Intellectual Property and Goodwill of $728.400, and had a deficiency of net current assets of $522,898.

The Directors nevertheless believe that it is appropriate to prepare the financial statements on a going concern basis for the following reasons:

• The company has developed a suite of products, including the PER ECG recorder and the BPfone* blood pressure monitor and receiving software system. The commercialisation of these products is currently being pursued through several channels, including the development of significant strategic alliances with key interest groups in both the UK/Europe and the USA.
• The directors have assessed the potential market for the company's products and are confident that strong commercial opportunities exist in the medium term. Initial sales of the

company's product have been completed and feedback received from customers and alliance partners supports the director's assessment of market potential.

The directors have completed a review of operating expenditure and have taken measures $\blacksquare$ steps to immediately reduce operating costs. The company's strategy also include the raising of additional capital, if required, to fund ongoing research and development opportunities; and, to provide working capital to fund the company's operations during this commercialisation phase.

The consolidated entity's ability to generate positive operating cash flow in the twelve months from the date of this report, as contemplated in the business plan, is dependent on a number of factors but primarily on its ability to successfully develop both the USA and UK/European markets and the continued supply of monitoring devices from the manufacturer on a timely basis.

In the event that the consolidated entity does not meet its planned revenue and cash-flow targets and is unable to raise further capital or adopt alternate strategies in the twelve months from the date of this report, the consolidated entity may not be able to realise its assets and extinguish its liabilities in the normal course of business at the amounts stated in financial report. Accordingly, the going concern basis used in the preparation of the financial report would not be appropriate.

Segment reporting $\overline{\mathbf{3}}$

Primary Segment Reporting: - Business Segment	Consolidated
Segment Revenue:	Six months to31 Dec 2003	Six months to31 Dec 2002
	$	$
Medical Monitoring and Diagnostic Services	131,432	421,038
Mining Exploration (discontinuing operation)	5,000
Total Segment Revenue	136,432	421,038
Unallocated Revenue	5,797	10,734
Total Revenue (There are no inter-segment revenues)	142,229	432,772
Segment Result:
Medical Monitoring Diagnostic Services	(2,162,706)	(1.596,755)
Mining Exploration (discontinuing operation)
Segment result	(2,162,706)	(1,596,755)
Unallocated corporate expenses
Loss from ordinary activities before income tax	(2,162,706)	(1,596,755)
Income tax benefit
Net loss	(2,162,706)	(1,596,755)
Depreciation and amortisation of fixed assets - MedicalMonitoring and Diagnostic Services	90,824
Depreciation and amortisation of fixed assets - MiningExploration (discontinuing operation)
Amortisation of intangibles - Medical Monitoring and Diagnostic	637,576

Services

	Consolidated
Segment Assets:	As at31 Dec 2003Ŝ	Asat31 Dec 2002$
Medical Monitoring Diagnostic Services	8,237,110	9,145,864
Mining Exploration	w	15,000
Total Assets	8,237,110	9,160,864
Segment Liabilities:
Medical Monitoring Diagnostic Services	2,418,411	1,886,111
Mining Exploration
Unallocated corporate liabilities
Total Liabilities	2,418,411	1,886,111
Secondary Segment Reporting :- Geographical
Segment Revenue:
Australia	72,714	432,772
Italy	16,395
USA	53,120
UK
Total Revenue	142,229	432,772
Segmented Assets by Location of Assets
Australia	8,216,042	9,140,461
UK	6,489
USA	14,579	20,403
Total Assets	8,237,110	9,160,864

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