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good profit turnaround

  1. towie

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    Half Yearly Report

    Document date: Fri 07 Mar 2003 Published: Fri 07 Mar 2003 14:00:46
    Document No: 151759 Document part: A
    Market Flag: Y
    Classification: Half Yearly Report
    EGLOBAL INTERNATIONAL LIMITED 2003-03-07 ASX-SIGNAL-G

    HOMEX - Brisbane

    +++++++++++++++++++++++++
    eGLOBAL RESTRUCTURE BUILDS SOLID PLATFORM FOR FUTURE GROWTH

    Australian technology company eGlobal International Limited has today
    (Friday, February 28, 2003) posted a net profit after tax of $1.09
    million for the first half of the 2002-2003 financial year.

    The result represents a $1.33 million turnaround from a net loss of
    $249,000 for the previous corresponding half-year and was achieved
    during a period that has seen a very major restructuring of eGlobal's
    business operations aimed primarily at focusing on the fast-growing
    information technology security sector.

    eGlobal chairman Jim Goldburg said the result was a reflection of the
    amount of work that has gone into repositioning the business and
    developing new technologies and markets.

    "With a new board and strategic direction in place, eGlobal has
    established a solid foundation for future growth and profitability,"
    he said.

    "We are now looking forward to continuing to drive the company
    forward to maximise its full potential, both in Australia and in the
    huge growth markets of North America and China."

    Mr Goldburg said the restructure of eGlobal's business operations
    means the company is now strategically positioned in the information
    technology security market, which presents enormous growth
    opportunities globally.

    "The sale of our SAP business to Logica for $6.5 million in September
    and our acquisition in January of specialist information security
    company Citadel Securix Limited for $2.73 million clearly highlights
    the future direction of our Australian operations," he said.

    "We are effectively repositioning the company, which is now strongly
    focused on its core business of information technology security.
    Market interest in such technologies continues to grow
    internationally in the climate of ongoing terrorism threats and we
    are now well placed to cater for that demand by offering a
    comprehensive and market-leading product offering."

    Mr Goldburg said the acquisition of Citadel Securix has strengthened
    eGlobal through the addition of a blue chip corporate and government
    client list, which complements eGlobal's existing strong client base.
    He stated that annuity revenues were now over 30% of all income and
    that this was expected to rises significantly during the current
    year.

    eGlobal managing director Gordon Chalmers said establishing a
    presence in North America through the commercialisation of the Motor
    Vehicle Insurance Verification Engine (MIVE) has been a major focus
    of company management during the first half-year.

    He said while there have been some delays in the commercialisation of
    MIVE, an innovative new smart-card-based motor vehicle registration
    insurance system, the applications and systems development is now
    complete and eGlobal remains very optimistic about its potential in
    the North American market. Considerable marketing activities are now
    underway and discussions were progressing in a number of States about
    the systems potential.

    Mr Chalmers said China also remains a major focus of eGlobal's
    future growth plans. He said the licensing agreement for eGlobal
    technology to be utilised in the Chinese smart-card-based social
    insurance programs is now generating revenue streams. eGlobal is also
    continuing its negotiations to acquire a Chinese affiliate company.

    Another area of growth expectation is the recently completed Aged
    Care Portal. This software product suite recently won 'The Australian
    Aged Care Industry Best Innovation Award 2002' which was presented to
    eGlobal at the International Aged Care Housing Summit in Melbourne.
    eGlobal has commenced full commercialisation of the Portal and it is
    currently being used successfully by hundreds of Aged Care Facilities
    across New South Wales and Canberra.

    "eGlobal is committed to growing its core business of information
    security by developing exciting new technologies and products for the
    domestic and overseas markets," he said. "The commercialisation of
    these products, particularly in North America, should hopefully place
    us in strong position for the remainder of the current financial
    year."

    The trading result for the period was as expected as it reflects:

    * The impact of the sale of the SAP business on 12th September 2002;
    * The restructuring of the main eGlobal business, with very heavy
    investment in the completion and commercialisation of two major
    software products;
    * Ongoing repositioning of the business and significant development
    of software and hardware;
    * The continued downturn in the Australian IT Market.

    Mr Chalmers stated that, "It is pleasing that eGlobal's core
    business activities include a clear focus on IT Security and that the
    Company is now very much focused on this expanding market space.
    eGlobal will continue to expand into these markets with a range of
    new technologies being developed for the domestic and overseas
    markets during the significant downturn that continues to plague the
    IT industry in Australia and abroad."

    Further Information: Gordon Chalmers
    MANAGING DIRECTOR


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