NATIONAL TEXTILES LIMITED(NTL)

Since delisting from ASX this entity has been privatised. We are no longer monitoring its activities.

this company has now been converted to a private company New Bounty Pty Limited - we will follow it no longer

we note that the company (now New Bounty Limited 795 Botany Road Rosebery NSW 2018 Postal: PO Box 824 Rosebery NSW 1445 Phone: 02 9700 9302 Fax: 02 9700 9304) has lodged with ASIC a "Notification of Resolution Altering the Constitution" - one hopes the company has consulted with its shareholders and had a special resolution passed before it changes its constitution

company has been renamed New Bounty Limited and has purchased the Tasmanian State Governments 49% holding in Australian Weaving Mills

shareholders have been unable to claim their capital loss as a liquidators declaration has not been issued to our knowledge

unable to ascertain directors' intentions - one director is uncooperative, waiting to hear from others

shell of company left, essentially with holding in Australian Weaving Mills and a mortgage

deed of company arrangement virtually fully effectuated

CALDB finds administrator failed to adequately investigate company or properly advise creditors

delisted at the discretion of ASX

directors advise intentions of undertaking a capital raising by way of a rights issue before year end

directors indicate proceeds from sale of assets will be taken up in paying secured creditors

ASIC completes investigation into company concluding that no action warranted against directors

deed of company arrangement executed and control returns to directors

company's shares suspended from trading

directors of the view that if companies continue to trade they may become insolvent

J Star of Star Dean-Willcocks appointed to act as voluntary administrator