The Company issued the Notes to Citadel in an aggregate principal amount of US$40 million. Pursuant to the Agreement, the Company will repurchase from Citadel the Notes in an aggregate principal amount of US$18.7 million for a total repurchase price of US$20.0 million payable in cash. The Note repurchase will be completed in two tranches. The Company expects to purchase $14.0 million of the Notes on July 28, 2008, and $4.7 million of the Notes by the end of 2008. Upon the completion of the repurchases, respectively, the repurchased Notes will be cancelled. The Company intends to finance the repurchase of the Notes from its cash resources. As a result of lower interest expense, the Company expects the repurchase to be accretive to net earnings by approximately $0.01 per diluted share in fiscal 2008 and $0.06 per diluted share in fiscal 2009, on a U.S. GAAP basis.

In connection with the Notes repurchase, Citadel has agreed to waive past noncompliance by the Company through June 30, 2008 under certain financial covenants, and to amend a covenant, contained in the indenture for the Notes. Citadel has not agreed to waive any future defaults under the Note indenture. Investors should refer to the Form 6-K furnished by the Company to the Securities and Exchange Commission today for additional information regarding the Notes repurchase transaction and the status of the Company's past and future compliance with the covenants contained in the Note indenture. A copy of the Notes Repurchase Agreement is included as an exhibit to the Form 6-K, and a copy of the Note indenture is filed as an exhibit to the Company??s Annual Report on Form 20-F for its fiscal year ended September 30, 2007 filed with the Securities and Exchange Commission.

This Note repurchase provides the Company with the opportunity to increase equity shareholder value while continuing to streamline its operations and fund its GMO development through internally generated resources.