MARC had on 7 April 2006 placed  the rating of the above issue on MARCWatch with a Negative Outlook. The action resulted from M-Trex’s failure to provide the necessary information for MARC to carry out its first annual surveillance review.

Arising from MARC’s surveillance of the issue it has come to our attention that M-Trex is currently in breach of provisions under the Facility Agreement and Trust Deed, primarily relating to the utilisation of proceeds from the issuance. M-Trex has sought consent/indulgence from the note holders but up till the release of this announcement, the consent/indulgence from the note holders has not been formalised.

MARC is currently conducting its surveillance review, the outcome of which will be announced by the middle of August 2006.