Welcome to the third edition of the Stirling Connection. There is always an extra sense of achievement when you get to the magical third edition.  The first edition is always full of enthusiasm - why not, it has not been done before. The second edition is met with some surprise because there are always those that doubt your ability to repeat the effort, and then comes the third edition.  I always think it is an edition that says - we're back and even if you wanted us to go away, we haven't!

We are now starting to get a format going. The structure of the Stirling Connection - Feature Article; In the News; About Town and A Little Bit of Humour to Finish Off, seem to work; well at least in my opinion.

We have come back for more punishment in this edition too, with another audience question to answer.  I must confess the response to the last question, (even when we cheated and asked it twice) was not good.  To those three lonely souls that took the time to respond - I thank you very much for your interest. To each of the other one hundred and seventy eight readers - you have a second chance.

As a final note, if there is some aspect of Stirling's business or the technology areas in which Stirling operates that you would like addressed, we will endeavour to answer it for you to the best of our ability and within the scope of public disclosure.  My ambition for the Stirling Connection is that it will become a vehicle by which we can interact with our shareholders.

Enjoy the third edition of the Stirling Connection; the fourth edition depends on it!

Frogs to the Rescue

A report from the CSIRO (Feed Mix Business News, February 27, 2006) has highlighted the potential that a particular Australian species of frog could lead to a dramatic reduction in the amount of feed that livestock need during drought.  The green striped burrowing frog (you know the one I mean - it has a green stripe!), common to Queensland's dry interior makes a rapid recovery after hibernating through drought, sometimes for many years.

This particular frog, according to researchers at CSIRO, has a muscle structure not dissimilar to a range of animals.  Recent findings indicate that a high level of antioxidants in the muscle inhibit muscle breakdown normally associated with long periods of inactivity and may suggest potential benefits to the livestock industry.
(Another example of the benefits of biotechnology!)

More than Meats the Eye

The Annual Meat Conference held in the United States in Grapevine, Texas, indicated that recent surveys have shown that on average, 4.3 home-cooked meals include a meat item eack week.  In a report published by USA AgNet, (March 16, 2006), 81.3% of US Meat consumers prepare beef once or more per week, and 90.1% prepare chicken once or more per week.  Fresh meat also topped ready-to-eat meats and ready-to-heat meat products.

The survey was based on responses from 1,750 consumers nationwide.  Respondents had to be at least 18 years old, a primary food shopper and not a vegetarian or vegan.

(Having lived in the US for over three years, all I can say is that things must have changed since I lived there.  My recollection of US consumers does not reflect these figures, and only a few American homes have home-cooked meals with any regularity.) 

Green M&M's, What's Next?

The anwer is green eggs and bacon!
An article in Biotechnology News (BiotechnologyNews.net, subscription required) described how researchers in Taiwan had successfully implanted DNA (the genetic blueprint in all cells) from jellyfish to breed fluorescent green pigs.  Three male piglets now successfully glow in the dark under a blue light.  In the daylight the pigs' teeth, trotters (that's their feet) and their skin has a greenish hue to it.  Although they are green and their internal organs are also green, they appear to be the same as normal pigs. 

You may be asking why would anyone want fluorescent pigs? Well, apart perhaps from providing assistance in some of those very poorly lit restaurants, the scientists intend to use the pigs to help monitor and trace changes in cell tissue during physical development. (It's probably not the best advertisement for winning people's attitudes to genetic engineering though!)

About Town

Wall Street Reporter Interview
Be sure to read the insight into Stirling Products and their globalisation strategy conveyed in a media interview by Ian Roberts of the Wall Street Reporter, New York and CEO/Managing Director, Dr Calvin London.  The interview was conducted on April 18.  A copy of the transcript is available by clicking on the image.   

Watts International Pet Food Forum
While in Chicago, United States for the Bio 2006 Conference, Calvin London also attended the 2006 International Petfood Forum.  The conference was attended by delegates from several different European, South East Asian and North American countries, including three companies from Australia (Stirling and two others).  Among the topics presented, sessions including discussion on feline obesity, palatability of different pet food diets and the European regulatory system for companion animals were of particular interest to Stirling.

BIO 2006
We all know that the biggest things happen in the United States and biotechnology conferences are no exception.  This year the BIO 2006 Annual International Convention was no exception. The biggest biotechnology conference in the world was attended by over 18,000 delegates and included a conference with over 180 sessions [not that many at BIO ever get to see many of these!], business partnering and investment forums and over 1600 organisations in the largest ever trade exhibit.

Stirling Products' Dr Calvin London was part of the delegation to BIO 2006 that was headed by the State Premier and Minister for State Development the Honourable Alan Carpenter and included Professor Barry Marshall, Nobel Laureate.

"This year's Bio was extremely successful for Stirling Products", commented Calvin London.  "There was a much greater agricultural and animal health presence this year and we were able to capitalise on this and make some very useful contacts.  I was proud to be part of the WA delegation which once again demonstrated a united and talented front under the direction of the State Department of Industry and Resources". [Well done guys, a special thanks to all at DOIR from Stirling and especially to the "Colltech girls" for watching the stand while I was at meetings!].

Boardroom Radio Interview
CEO and Managing Director, Calvin London recently conducted an interview with Boardroom Radio.  Boardroom Radio is a Sydney-based media outlet that services investors and broking firms throughout Australia. 
Some of Boardroom Radio's distribution partners are IRESS [that reaches more than 12,000 broker, fund manager and professional investor screens across Australia], Westpac Broking, Egoli [Shaws Stockbroking], The Intelligent Investor, Australian Institute of Company Directors, Share Cafe, Market Informer, Eureka Report, Sharescene.com.au and Man Financial.
You can access the interview here.

LandLine Feature on Antibiotics in the Meat Industry
Followers of Stirling will remember that late last year we (Dr Calvin London, Professor Clive Page and Dr Gunnar Aberg) conducted an interview with LandLine Reporter Shaun Murphy.
This story has been completed and will feature several of Australia's leading animal biotechnology companies including Stirling Products. It is expected to go to air this Sunday, June 4.  LandLine is Australia's most watched rural program and airs on Sunday mornings on the ABC channel. 

Wall Street Small-Cap Discovery Conference, New York
Stirling will be presenting at the Wall Street Reporter Small-Cap Discovery Conference in New York in June.  This conference is a premier event for emerging growth companies and attracts small market cap companies and institutional investors from around the world.  It is also attended by over 200 fund managers, analysts and investment bankers.

Agricultural Biotechnology International Conference [ABIC] - Melbourne, August 6-9 2006
Following Stirling's successful Trade Exhibition at the 2005 AusBiotech Annual conference in Perth last year, Stirling will be part of the Trade Exhibition at this year's ABIC 2006 "Unlocking the Potential of Agricultural Biotechnology". Previous ABIC conferences have attracted over 800 international delegates.  More details may be found on the AusBiotech website.

Stirling's ASX Releases in 50 Words or Less

May 23 - Updated Company Presentation
The presentation which is also available on our website, provides updated information to investors and shareholders relevant to the progress that has been made by Stirling in the last six months.

May 22 - Stirling finalises A$1.3 million Placement to Indus Capital Partners, LLC
This probably does not need any further explanation except - $$$$$$$$$.  The funds will be used to progress the development of both the growth agent platform and the companion animal obesity application in both less regulated and the more sophisticated regulated markets.

May 22 - Stirling Closes Second Successful Trial of R-Salbutamol in Poultry
This announcement details the final data generated from the second trial in poultry.  Just as in the first trial, the residual levels in meat are extremely low.  Residue levels were as low, if not lower when R-salbutamol was administered in water rather than in feed pellets.

May 22 - Stirling Continues Next Study in Lambs
The long-awaited second production trial in sheep will determine the positive effects that R-salbutamol has on production characteristics and carcass quality in Merino lambs.  The data generated will be used to support applications primarily aimed at registrations in South Africa, Australia and New Zealand.

April 5 - Stirling Assigned Patent Application for New Manufacturing Process
The patent application assignment provides Stirling with the potential to extend the current life of our existing patents and provides the company with a novel manufacturing process for R-salbutamol. The synthetic process will be able to manufacture the large quantities required and at acceptable costs.

There has also been considerable press coverage in the last two months nationwide, especially in relation to the applications for treatment of obesity in companion animals.  Visit the website to view the articles.

A Little Bit of Humour to Finish Off

[The two articles in this edition are perhaps more surprising than humorous and pick up on the theme of the feature article].

Lettuce, Turnip and Wholly-Cow!
Dan Murphy, a US agricultural writer captured the absurdity of how some regulations and endorsements work [Meatingplace.com, January 1, 2006].  He comments on a press release that was made late last year by a United States company that proudly annnounced they had developed the first bagged lettuce to display the American Heart Association Heart-Check Mark.

According to the announcement the freshly washed, ready-to-use, individual lettuce leaves (Green Leaf, Red Leaf, Green Cascade mix and Romaine) meet the criteria for saturated fat and cholesterol, thus making the full lettuce line a "healthy food".

Apparently the lettuce leaves are individually selected and separated from the core by a patented no-cut system leaving its vital tissues intact.  Dan recollects his younger days when he would have been about one of a dozen other losers (his assessment, not mine) tearing lettuce leaves apart across a four-foot conveyor for eight hours a night, according to the article.

Now it has always been a mystery to me how anyone could be lured into the "individually bagged lettuce" thing, but to now have the choice of Heart Association endorsed lettuce leaves?

One million rabbits around the world cannot be wrong and to the best of my knowledge, cholesterol from lettuce leaves is not a big health threat to rabbits.  While lettuce is a basic addition to any salad, the nutritional content of a lettuce leaf is hardly going to rock the Richter scale of important food substrates.  This cheapens the whole AHA system for endorsing foods that truly do lead to a reduction in adverse components in food.

No Meat Please, We're Kind of Vegetarian...
A student teacher attending a seminar promoting and explaining agriculture in the classroom was outraged at hearing what goes on in a packing plant. She did not realise that in order to have a hamburger, a cow had to be slaughtered. 

At the lunch break she sat down to have her lunch and proclaimed that she could never eat another hamburger because it involved killing an animal... she ordered chicken instead.

***Look out for the feature article in the next edition - "It's All In a Mouthful"***