will it ever recover to the 38p i paid for them??

Thanks for that, all looks abit gloomy, glad only a very small holding, not worth selling just stick to the back of the drawer. Would like to know abit more about exact breach of contract?

From 3i BB

"Pyglet - 27 May'04 - 14:39 - 1570 of 1606

Just spoken to Richard Scott - they are drafting an RNS which should be released later today which will put more meat on the bone. He thinks that if anything it is a sihgn of good news and is nothing to panic about. He had to go as the lawyers were on the other phone."

guess arx have done a deal or are about to do a deal without going through the wmk path. wmk want to make sure they get their slice of the pie.

Initial panic seems to be over, if it is over a new contract then its a sort of
positive note, lol, keep smiling.

How interesting!

Adieh,

we'll see, but I don't share the optimism being thrown around on the ADVFN thread, not yet at least!

RNS just out, looks like areobox arn't happy with waterhouse actions, areobox have the patent and the product... Should come through with large order in the near future. Fingers crossed...

Adieh,

Well that's what people are ASSUMING on ADVFN, but there's no substance more that wishful thinking to their posts IMHO.

This is clearly somewhat messy, and both sides seem headed towards litigation, which will be both costly, and a distraction form the main business.

The market doesn't like doubt, yet that is what ARX now has unless they announce a decent order in the very near future.

Without this news they were is a downtrend, and burning through their cash.

I cannot see how these RNS can possibly make anyone feel better about ARX, or the shareprice.

The RNS eluded to a deal that is what has caused this split... Lets wait and see if the contract is announced.

Adieh,

And the next one please!

This is certainly starting to look messy now IMHO.

--------------------------------------------------------------------------

Watermark Group PLC
27 May 2004

Watermark Group plc ('Watermark')

Agreements with Aerobox plc

Watermark announces that it is in receipt of a termination notice in relation to the Agreements dated 3 September 2003 from Aerobox plc and has noted an announcement made by Aerobox plc, issued after Watermark's own decision to announce the requirement for Aerobox plc to remedy its substantial breaches of contract.

The allegations contained in this announcement are completely without foundation and will be vigorously resisted. Watermark will, in its turn, take all action necessary to protect its interests and rights arising out of its agreements with Aerobox plc.

For further information

John Caulcutt / Crispin Quail Jeremy Carey / John West
Watermark Group plc Tavistock Communications
Tel: 01489 897800 Tel: 020 7600 2288
e-mail: info@watermarkplc.co.uk e-mail: jwest@tavistock.co.uk

This information is provided by RNS
The company news service from the London Stock Exchange

Adieh,

The company announced this only 8 days ago, and IMHO, this does not alude to substantial orders in the pipeline, or otherwise surely they could be accused of misleading the market?


"The Company anticipates further orders but timing can never be certain".

rns from today....

LONDON (AFX) - Watermark Group PLC said allegations made by Aerobox PLC in
connection with the companies' dispute - both accuse each other of substantial
breech of contract - are completely without foundation and will be vigorously
resisted.

Watermark said it has received a termination notice from Aerobox in relation to
their agreements dated Sept 3 2003.

In Sept 2003, the companies formed a 50-50 joint venture to market and supply
globally lightweight and durable airfreight containers - dubbed ULDs, for unit
load device - produced by AeroBox, with Watermark providing marketing expertise.

In a statement yesterday AeroBox refuted allegations that it has breached the
terms of the Sept 3 agreements with Watermark.

The statement came as a reaction to Watermark announcing earlier the same day
that it has served a notice for breach of contract on Aerobox relating to the
production of cargo ULD's for aircraft.

Aerobox said yesterday that, just prior to that announcement, it received a
letter from Watermark requiring AeroBox to remedy the alleged breach of contract
within 30 days.

AeroBox said it has been in discussions with Watermark in relation to AeroBox's
dissatisfaction with the marketing arrangements for over five months. Until now,
discussions have centered around AeroBox's serious concerns at breaches by
Watermark of the agreements, it said.

AeroBox said it has repeatedly asked Watermark to remedy these breaches and
provide invoices to substantiate the level of its marketing expenses which
significantly exceeded the agreed budget. 'Watermark has failed to do so,' it
said.

These breaches resulted in AeroBox terminating the agreements yesterday with
immediate effect.

Termination by virtue of breach by Watermark of the agreements results in
Watermark's rights to subscribe for between 10 and 12.5 pct of AeroBox equity at
nominal value automatically lapsing.

AeroBox yesterday added it believes that appointing several sales agents
focused on specific territories will result in a faster roll out than would be
possible under the Agreements with Watermark.

newsdesk@afxnews.com

lam

News that Watermarks CEO and FD have lifted they stake in the company.

aldwickk,

Yes there have been some director buys today, showing faith I guess.

They obviously know far better than anyone how strong their case is, and I would imagine this is to support their shareprice, nothing more.

Having said that, 35,000 shares is a substantial sum of money, and I doubt he would throw it away unless he had some degree of confidence.

I do not share the rose tinted view that ARX are the good guys here at all, and the more I read the rampy rubbish, the more I have doubts.

This will take some time to unravel IMHO, and ARX will be risky until then.

Broker note updated 1/6/04

Rrom advfn BB Quote:

"Buy 19.25p

AeroBox has terminated its JV agreement with Watermark plc after protracted negotiations failed to remedy certain alleged breaches by Watermark.

Each party will defend its stance, which could result in litigation and thus legal fees. Investors should offset the negative aspects of this against an AeroBox which is free of high commission charges, generous sales and marketing fees and12.5% dilution due to shares being issued to Watermark at nominal value.

The worst case scenario for AeroBox is that it will have to take a 12.5% dilutionhit which is already factored into our figures. Ongoing sales and marketing costsare likely to be reduced substantially (2003: second half 350,000) going forward,which has not yet been factored into are numbers.

AeroBox is now operationally free of Watermark and can deal directly withregional agents who are more experienced and have better knowledge andunderstand of the cargo and freight markets. AeroBox has been approached by agents wishing to act for it, and we would not be surprised to hear more about these soon.

We consider the termination of the Watermark agreement as positive fo rAeroBox. It is important to remain focused and we can only reiterate our previouscomments that AeroBox is in an advanced trialling stage of a unique product,which has a strong chance of capturing 25% of the market over the next 5 years,currently in total worth $200m per annum. AeroBox is suffering growing pains, but with David Sebire and Richard Scott on board, we believe the management are fully committed to making AeroBox one of the largest suppliers of cargo and freight containers in the world. We rate AeroBox as a BUY."

Who is the broker ?

From the BB its Seymour Pierce circulated to their clients on 1/6/04

is there any hope of a short term recovery in the price? i bought at 38p!! and its now circa 16p

wait and wait for the announcement. as a non holder i am looking to get in after they have some substantail orders. i don't mind paying small up from this level but need a degree of certainty that the product will be adopted.

I'm in the keith thomas club too...lol.... I'm holding onto mine as I believe it will all come good eventually...... if the shares start tracking north then I'll buy more on the way up...as they have seemed to have levelled.