The Directors recognise the value of good corporate governance as a positive contribution to the well being of the business.

The Company's policy is to comply with the provisions of the 2003 FRC Combined Code so far as is practicable and appropriate for a public company of its size and nature, although as an AIM company it is not required to comply. The Board has established an audit committee, a remuneration committee and a nomination committee with formally delegated duties and responsibilities. The members are the Non-Executive Directors.

The audit committee receives and reviews reports from management and the auditors relating to the annual and interim accounts and the accounting and internal control systems in use throughout the Group. The audit committee has unrestricted access to the auditors.

The remuneration committee reviews the scale and structure of the executive Directors’ remuneration and the terms of their service contracts. The remuneration and terms and conditions of appointment of the Non-Executive Directors are set by the Board. No Director may participate in any meeting at which discussions on decisions regarding their own remuneration take place. The remuneration committee also administers the Share Option Scheme.

The nomination committee reviews the structure, size, composition and performance of the Board of Directors. It is also responsible for developing proposals for change in the Board when appropriate.

The Company will take all reasonable steps to ensure compliance by the Directors and applicable employees with the provisions of the AIM Rules relating to dealings in securities of the Company and has adopted a share dealing code for this purpose.