In October 2008, Molecular Securities, Inc. (Molecular) filed a complaint against the Company
asserting claims for breach of contract. Molecular alleges that it is owed US$ 2.7 million for services
that it allegedly provided to TyraTech plus interest, attorneys' fees and costs. The Company
strongly refutes this claim and is vigorously defending itself in the lawsuit. After taking advice on
the merits and demerits of the lawsuit the Company does not intend to provide any liability for
the lawsuit. On 26 May 2011, the New York Supreme Court, Appellate Division of New York
County issued a ruling entering judgment in favour of the Company and against Molecular and
dismissing Molecular's complaint in its entirety. Molecular may choose to appeal the ruling with
the Court of Appeals (New York's highest court) in which case the Company will continue to
defend itself and continues to believe that the recording of any liability is inappropriate as
Molecular's claims are meritless. If Molecular were to prevail in the litigation there could be a
material adverse effect upon the Group's working capital which could in turn significantly delay
the development of the Group's business and its ability to achieve profitability.
Currency Effects : The Group has no significant overseas currency exposures and does not
use financial derivatives to manage currency risk.
Peter Jerome, Chief Financial Officer and Group Secretary
20 June 2011
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T y r a T e c h , I n c . : A n n u a l R e p o r t 2 0 1 0
