SEQUOIA FINANCIAL GROUP LTD — Annual Report 2004

Dec 7, 2004

8 December 2004

Dear Shareholders

Please find enclosed the CommSoft Group Annual Report for the year ending 30 June 2004. The past year has been spent attending to the backlog of administrative, legal, reporting and compliance matters that remained incomplete when the current Directors assumed office. This was necessary in order to as far as possible prepare CommSoft for a return to the market with a minimum of administrative and bureaucratic delay.

More importantly, the past year has also been spent identifying and reviewing potential businesses suitable for acquisition by CommSoft to allow us to gain readmission of our CommSoft shares to trading and reinstate our quotation from its current suspended status.

During the year we reviewed over 50 businesses seeking a listing through the CommSoft shell. These were attracted via a series of advertisements placed in the press and through a network of contacts and advisors. However, most of these proposals were fundamentally lacking in merit and / or quantum.

I am delighted to advise that on 8 December 2004, CommSoft entered into a non-binding Heads of Agreement for the scrip for scrip acquisition of the MDSnews Group. The MDSnews Group owns MDSnews.com, and is a business providing real time comprehensive news and quote services for the financial markets, to retail and corporate investors and brokers.

Entering into a binding agreement to purchase the MDSnews Group is subject to a number of conditions precedent, not least of which will be the completion of due diligence to the satisfaction of both parties. Once this process has been completed and if the due diligence proves to be satisfactory, an Extraordinary General Meeting will be called and a prospectus lodged for a contemplated capital raising.

As shareholders you will all have an opportunity to vote on this transaction at the appropriate time which we anticipate to be in March 2005. I encourage you to attend the AGM to be held on 17 January 2005 at 14:30 at the offices of BDO, L19, Allianz Building, 2 Market Street. Sydney. We anticipate that a presentation will be made by the MDSnews Group displaying the MDSnews.com technology and systems, in order to give shareholders a first hand opportunity to view their product.

I wish you and your loved ones well over the festive season.

Yours sincerely

Jeff Zulman Chairman