EGI 0.00% $1.11 ellerston global investments limited

An Excellent Report

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    Posts 90% Revenue Growth to Underpin new Strategic Direction

    Document date: Tue 27 Aug 2002 Published: Tue 27 Aug 2002 09:47:20
    Document No: 148118 Document part: A
    Market Flag: Y
    Classification: Preliminary Final Report
    EGLOBAL INTERNATIONAL LIMITED 2002-08-27 ASX-SIGNAL-G

    HOMEX - Brisbane

    +++++++++++++++++++++++++
    Australian technology company eGlobal International Limited has today
    (Tuesday August 27, 2002) announced a 91% increase in revenues from
    sales and services to $17 million.

    The increase in revenues represents a significant improvement on the
    company's 2000-2001 financial year revenues of $9 million. eGlobal's
    profit before tax for the 2001-2002 financial year was $898,000.

    eGlobal Chairman Jim Goldburg said the result was most pleasing
    considering the tough trading conditions in the technology sector
    over the past 12 months and the costs incurred in cleaning up the
    former Coms21 business and the eBet Limited 'in specie' share
    distribution. He said the aforementioned costs were one-off costs
    and, therefore would not be incurred by the company in the following
    year.

    "Although the past year has presented very challenging market
    conditions, we have emerged as a much stronger company with a clear
    focus on the increasingly important and fast-growing sectors such as
    internet security and smart card technologies," he said.

    "Most importantly we have also undertaken some significant product
    development and restructuring that will place the company in a very
    strong position, with these new emerging technologies being sold into
    significant overseas markets in the years ahead. The doubling of our
    revenues reflects the continued expansion of our blue-chip corporate
    and government client base, which is supported by our commitment to
    achieving cost savings throughout the business. With a clear vision
    for expanding our presence in Asia and North America, we are
    confident of continued sales growth and improved performance in the
    current financial year."

    In an important step towards its evolution into a global technology
    group, eGlobal recently announced plans to acquire the Chinese
    business operations of its associated Hong Kong company eGlobal
    International Holdings Limited via the acquisition of eGlobal (Hong
    Kong) Ltd subject to the completion of due diligence and eGlobal
    shareholder approval.

    The acquisition will mean, among other advantages, that all revenue
    from Chinese smart-card projects will now flow back to eGlobal in
    Australia.

    During the past year, eGlobal has also established a strategic
    foothold in North America through the formation of a joint venture
    company, InsureNet America Inc, to supply an innovative new
    smart-card-based motor vehicle registration insurance system to
    American states.

    eGlobal Managing Director Gordon Chalmers said China and North
    America presented enormous growth opportunities for eGlobal. He said
    eGlobal's tailored smart-card and internet security solutions were
    perfectly suited to both markets and considerable energies had been
    expended during the last six months to prepare a new range of leading
    edge solutions for these markets.

    "China and North America both have huge populations and the need for
    managed information security and identification systems is
    paramount," he said.

    "In the aftermath of last year's terrorists attacks, there has been
    an increased consciousness amongst government and corporate bodies
    around the world of the personal and organisational security benefits
    provided by smart-cards and improved internet security. Our
    market-leading.internet security, mobile communication solutions and
    smart-card technologies are ideally positioned to meet these growing
    global needs.

    "As indicated during recent announcements, the company has been
    undertaking some exciting leading-edge hardware and software product
    development over the last six months. While this has cost the company
    significant investment, it is now clear that this been the correct
    path to follow and indeed some exciting opportunities to
    commercialise these new products are currently being tendered. These
    are the first steps in some significant re-alignment of the eGlobal
    business. Historically the company has been very reliant on
    project-generated revenues from our professional service divisions.

    "The current restructuring is all about moving strongly into markets
    where our newly developed technologies offer recurring annuity
    incomes. These income streams are based on clients' use of eGlobal
    intellectual property and hardware products or their use of eGlobal
    developed applications, which are hosted in our Data Centre. We are
    in a number of discussions about technology product representation in
    the region and also looking at a number of companies to partner and
    other options so as to more rapidly grow the business."

    Another significant milestone for eGlobal in the past year was the
    distribution of the company's 40,000,000 shares in gaming group eBet
    Limited.

    Mr Goldburg said the successful eBet distribution signaled a fresh,
    new beginning for eGlobal as a publicly-listed company in its own
    right. He said eGlobal had since been able to focus all of its
    energies and resources into establishing a clear market position in
    the provision of internet security, enterprise application
    integration and smart-card solutions.

    "We now offer a total solution package in information technology
    security for corporate and government clients," he said.

    "The worldwide market for information security solutions is estimated
    at approximately US$16 billion and is projected to grow by 25 per
    cent per annum to approximately US$31 billion by 2005. The Australian
    market is approximately $900 million and is also forecasted to grow
    by 25 per cent per annum to $1.8 billion by 2005.

    "Very few Australian companies can offer the complete set of services
    offered by eGlobal, which differentiates its offer by having a strong
    team of application software developers to supply a complete
    technology solution stack."

    ABOUT eGLOBAL

    Visit http://www.eglobal.net for further information.

    Further Information: eGlobal International Limited (ASX CODE:EGI)
    Gordon Chalmers 0438 812614
    Jim Goldburg 0407 289758
    Alan Smith

 
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