In additional to reducing marketing and technical costs, the HMO board also made the decision to transfer operation of the HMO platform from Israel to Australia. Following a detailed review of the HMO platform the board of HMO has determined that it wishes to continue to operate the HMO platform, albeit with a more conservative cost structure and with a different user /marketing strategy. Firstly, with the bulk of the previous operating costs now removed, HMO has migrated operation of the HMO platform to an Australian technical team who have a defined scope and a fixed monthly budget. This has reduced expenditure associated with the operation and management of
the HMO platform to approximately USD 10,000 per month.

The board of HMO advised that founding board member, Mr. Moran Chamsi, has tendered his resignation from the board with effect from receipt of the termination payments outlined above, which
is expected shortly. With the resignation of Mr. Chamsi the HMO Board is pleased to advise that founding Chairman Mr. Howard Digby has agreed to rejoin the Company as a Non-Executive Director. More recently, he was with The Economist Group as Regional Managing Director. Prior to this he held senior regional management roles at Adobe and Gartner.