good profit turnaround

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

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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