ADSLOT LTD. - Annual Report 2008 | FinancialReports.eu

==> picture [234 x 37] intentionally omitted <==

annual report 2008

==> picture [596 x 219] intentionally omitted <==

----- Start of picture text -----

n
h
l
t
o i
i
n
h
w
an e
ali
c
g
str
Au
lo
m
T
h
e
b
a
y
l
a
e
n
re
di
a
a
p
c
o
m
----- End of picture text -----

ANSEARCH LIMITED

ABN 70 001 287 510

ANNUAL REPORT

30 June 2008

	Page
Chairman’s Report .........................................................................................................	3
Chief Executive Officer’s Report................................................................................……	4
Directors’ Report ............................................................................................. ………….	6
Auditors Independence Declaration ...............................................................................	21
Income Statements ................................................................................................. ……	22
Balance Sheets ..............................................................................................................	23
Statements of Changes in Equity...................................................................................	24
Cash Flow Statements ...................................................................................................	25
Notes to the Financial Statements .................................................................................	26
Directors’ Declaration .....................................................................................................	68
Independent Audit Report to the Members ....................................................................	69
Corporate Governance Information ...............................................................................	71
Shareholder Information ................................................................................................	73

CHAIRMAN’S REPORT

Dear Ansearch Shareholders,

The year just passed has been full of opportunities and challenges for the Company. A significant amount of repair work was required after the period of instability at the end of 2007, however this is now well behind us and we are clearly focused on what lies ahead for Ansearch.

The matters that were addressed at the end of 2007 presented us with an opportunity to appoint an entirely new board of directors, all of who have significant and relevant industry experience, and all of whom play an active role in governing and operating the Company.

We appointed a highly capable CEO early in 2008, Mr David Burden, who brings the requisite leadership and management capability to execute on the Company’s plans. In addition we have appointed a new senior management team with business building capability.

The business has been restructured and simplified into three core divisions, each with clear operational boundaries. We have reduced the number of brands in the market allowing us to invest more fully in the three brands that remain, removing some legacy brands that were impacting adversely on our reputation.

Our reputation in the market was certainly buoyed by the news that Ansearch had won 1[st] place in the Victorian section and 2[nd] place overall in the Deloitte Technology Fast 50 Australia for rapidly growing companies. Even more pleasing is that we were able to follow this up with being awarded 8[th] place overall in Deloitte’s Fast 500 Asia region.

The year just passed was not without its challenges. The board instability in late 2007, the Opes Prime crisis, changes in the market environment forcing the severing of low quality revenue streams and unprofitable customers (now stabilised), some historical legal matters and dealing with a number of legacy commercial issues all required management’s attention. I am pleased to report that each of these matters has been appropriately dealt with and the focus of the entire business has returned to revenue growth and building value into the Company.

Despite these trials, the Company has increased its revenue almost 50% over the previous year, and we continue to make progress towards returning the company to sustainable profitability – a testament to the commitment of the team at Ansearch and their desire to see the business grow. The team continues to identify emerging global opportunities in the online and mobile advertising space, and new ways to help small and medium business do ‘ better business online ’.

The investment made in growing our revenue means we remained in a loss making position during the year. The board has elected to adopt a conservative stance and conduct a number of non-cash adjustments and impairment of intangibles, which together more than doubled the underlying operating loss.

We have cemented our business partnerships with Google and Yahoo, created a number of impressive new business partnerships, and closed a range of business deals with highly regarded market participants.

In a tightening market we have taken swift action to reduce our costs of doing business, and re-focused our investment into infrastructure needed to transform the business from an entrepreneurial start-up to a solid and robust business capable of scaling rapidly.

I am delighted to be a part of a company with such exciting prospects, and to have the opportunity to participate in building and transforming the organisation into one that all stakeholders can be proud of.

Yours faithfully,

==> picture [145 x 40] intentionally omitted <==

Andrew Barlow Chairman Ansearch Limited 30 September 2008

CEO’s REPORT

Since stepping into the business in February of this year I have conducted a full review of the operations of the company, and I am delighted with the underlying core assets of the business. Webfirm with its customer base of SME’s, the Ansearch and Anzwers search engines, our agreements with Yahoo and Google, our growing portfolio of online publishers we represent and our team of dedicated professionals who work in the business are solid assets to build upon.

During the year under review, and in particular in the past six months since the formation of the new team, we have achieved a great deal. We have bedded down the acquisition of Webfirm made late last financial year and put in place a new strategy for its expansion. We have completed a number of vital technology infrastructure projects to improve reliability and productivity. We have consolidated and centralised the back office support functions of the business and driven a renewed focus on corporate compliance.

Furthermore we have structured the organisation into three core business divisions:

Webfirm – with a focus on assisting SME’s grow their business online, through the provision of Web design, production and hosting, as well as search engine optimisation and search engine marketing, mobile sites and advertising;
Ansearch Media – whose role is to represent the advertising inventory of local and international website publishers and to promote this to Australian advertisers; and
Searchworld – which includes our owned and operated sites including the new look Ansearch and Anzwers search engines, our search syndication products, and our new search advertising network.

In terms of new business development, we have expanded the Webfirm business to the eastern states, opening an innovative new retail store in Melbourne, with plans to roll out additional offices in both Perth and on the east coast in the coming year. We have established a number of significant new business partnerships, and have signed attractive deals with both Navteq and blinkx. Further we have signed deals to represent some large international website publishers advertising inventory, such as Intergi.com; the GoFish network; Break.com; Bullz-Eye.com and Savvy.com. Ansearch Media now represents websites with some 100 million page impressions per month.

According to the June 2008 IAB report, online advertising expenditure in Australia for the 12 months ended 30 June 2008 totalled $1,523.5 million. This is the first time the market has exceed $1.5 billion in a 12-month period. This is an increase of $324 million (or 27.0%) from the 12 months ended 30 June 2007. Of this growth our two key areas of activity in Ansearch Media and Searchworld saw the display advertising sector grow 23% and Search & Directories Advertising sector grew 34% based on expenditure for the 2008 Financial Year[1] .

Online advertising expenditure in Australia is forecast to continue growing by 27% next year, Mobile internet � use has doubled in the past 12 months[2] , providing excellent opportunities for Ansearch. Our highly pro active Board is continuing to support the executive team in the identification of future strategic initiatives that will drive strong domestic and international growth.

Our 2008 group revenues of $12.3 million are up from $8.4 million last year – a very pleasing result – and the Company has a further $1.0 million in sales made and awaiting booking as revenue as services are delivered.

Our reportable result for the year was a loss of $6.7 million, however this result was impacted by a number of non-cash adjustments and write downs. Our normalised operating result, after adjusting for the non-cash effects of the $1.0 million unearned revenue adjustment and $0.2 million share based expense was a loss of $2.8 million.

2 Source: www.admob.com/metrics

1 Source: IAB Report June 2008

CEO’s REPORT (Continued)

The result was affected by:

the investment in new infrastructure to support the maturation of the business;
reclassifying some booked revenue to unearned revenue on the balance sheet;
The impairment of the carrying value of some intangible assets and goodwill;
atypical expenses such as departing CEO and Chairman in 2007;
thorough review and clean out of the accounts providing a orderly set to take into FY 2009; and
fixing a number of legacy issues.

Pleasingly our results for the second half have demonstrated a steady improvement. Our losses have been decreasing steadily during 2008, and we are driving toward becoming profitable during this financial year.

Our cost reduction program has resulted in shedding 20% of the non-essential positions across the group, and the termination of projects not seen as core to our strategy or not able to demonstrate sufficient returns. We are continually driving greater operational efficiency and productivity across all areas of the business.

We have a dedicated team of employees who desire success for the business and we have realigned our compensation schemes to ensure every person working in the business is incentivised to build value for the shareholders.

The unique and diverse skills within Ansearch will support our aim of helping our SME customers to build, promote and profit from their online activities – to do ‘ better business online ’. Furthermore, Ansearch is well positioned to play a major role in the growing online media space both regionally and globally. 2009 will be a year where Ansearch builds out from its core strengths: via organic growth in each of its three core operating divisions, and via identifying and capitalizing on new opportunities presenting themselves to the company. With this we expect to restore investor confidence, and drive greater value into the business.

Yours faithfully,

==> picture [132 x 73] intentionally omitted <==

David Burden CEO Ansearch Limited 30 September 2008

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report

�� !"��# $%�� # ��&��' ��$��(�

��

) ��# ��*�

��	��# ��	��*
		��	��
+	��, ��!��%	��-. ��-��	-
+	��/ ��, ��!�0 . ��12 �3 ��%	��-��-��	-
+	��4��	�5-��-��	-
+	��6��7 # �	��-��-��	-
+	��0 ��	��-��-�8	��-��-��
+	��' ��	��-. ��-��	��-��-��
+	�9 ��' ��# �!��. ��%	�1-��-��	��-��-��
+	�4��:��!��+ �# ��. ��%	�1-+ ��-�	��-. ��-��
+	�) ��# 4��	��-��-�	��-. ��-��

��

==> picture [108 x 100] intentionally omitted <==

��

��, ��; ��/ ��# -��# ��< ��=9 �� # ��3 ��3 ��; ��/ ��(��+ ��, ��->��2 ��? ��!��(��(�� %�� @ A -3 ��# ��/ ��-��/ ��3 ��2 �� (�? ��>��) ��3 # �� # ��3 ��3 �� 0 ; ��4��!�A B (0 B 9 �%��+ �# ��@ A C�8��(��+ ��, ��2 ��+ �; �A ��!��(��; ��(�� %��-��3 ��# ��/ ��3 (��+ �; �A ��. �� 2 ��+ ��+ �# ��(��+ ��, ��2 ��/ �� 3 ��/ ��3 ��# �/ ��9 �2 �!��3 ��3 ��9 �2 � ��%��D ��!��/ ��/ ��# %��D + ��!��>�� / ��/ ��3 ��/ ��%(��+ ��, ��; ��3 ��3 �� @ E ��>��(

��*��# ��# ��(�

=��*��8�&�5��# ��(�

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

==> picture [86 x 86] intentionally omitted <==

�� ! ��

��" # ��$��

��/ ��, ��/ ��>��/ ��(��/ �� F��3 ��-��/ ��3 ��/ ��# ��=��/ ��558(��0 . �� 558��1��/ ��/ ��>��:��G �=) � ��/ ��3 ��+ , . ��2 ��4��< �� , ��A ># 2 ��!��F��3 ��# %��+ ��H ��3 ��< ��3 ��3 �� 55�(��/ ��# �=��# ��/ ��9 ��:�� / ��# ��!9 :��%��) ��=��A ��/ ��A ��!) =A A �%��6�� + ��>��!��+ �%(��/ ��+ �F��+ �3 ��+ ��>��# � ��3 ��3 ��/ ��

��*��# ��# ��(�

=��*��18�� # ��(�

==> picture [86 x 86] intentionally omitted <==

��% ��

��4��/ ��/ ��=��# ��# (� ��F��A 0 . �!A ��0 ��. ��%��# ��55��# ��? ��(�� + ��55��/ �� >��:��G ��/ ��3 �� (�9 ��? ��=��/ ��, ��4�� F��/ ��3 ��/ ��>�� (��, ��+ ��@ ��/ ��# �� , ��(��&�F0 ��F��(�

��# ��# ��(� =�� 8��5��# ��.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

==> picture [86 x 86] intentionally omitted <==

��& ��' ( �� ) ��

��

��(�6��7 # ��A ��6��# ��>��# ��; ��/ ��/ ��/ �� >��# ��=��(�? ��; ��>��9 �� # I��/ ��3 ��>�4��# �6��!��3 ��# ��# �3 ��@ A ��%��69 ��, ��/ ��0 ��>��!��/ ��/ ��# ��>�3 �� %(�9 ��) . ��0 ��:��, ��3 ��A ��2 ��(�J ��, ��3 �� 0 . ��A ��# ��# ��# �� =��6��# �6��, ��3 ��(��4��, ��/ ��+ ��+ ��F��3 �� 3 ��3 ��3 ��@ A ��# �!�� # ��%(�? ��K��+ ��69 �=��>0 ; ��!��3 ��>�� %(��>��# ��) . ��>A ��3 �� # ��3 ��# F��@ A -3 ��(�, ��/ ��@ A ��>��) . ��A �� A ��!��? ��3 ��3 ��%��F��=��# (�? ��3 �� 3 ��# ��>��# ��3 ��A ��>�0 ; ��(��+ �� !+ , �, A ��? ��%��+ ��@ ��/ ��# ��

��*��# ��# ��(�

=��*�8��11�111��# ��(�

Company Secretary

==> picture [107 x 100] intentionally omitted <==

��" ��

��( �* ��( ��+ ��$��

��0 ��# �A ��# ��2 ��. ��/ ��3 ��(�? �� # ��2 ��. ��# �A ��# ��+ # �� =�) ��# (��? ��>��3 �� / ��(��3 ��9 ��3 �� =��# ��A ��(�

=��*��&18�� # ��1��(�

$��

) ��; ��3 ��3 ��3 ��C1��111�!��*�� C��&&&�&85%(�

��

) ��/ ��(��/ ��3 ��# ��(�

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

Review of Operations

�� !��# �A ��%*

��+ ��3 ��/ ��/ ��# (�) ��/ �� / ��3 ��/ ��/ ��# ��/ ��# (� . ��# ��/ ��# ��; ��# ��/ ��3 �� # ��J �3 ��(�) ��< ��3 ��>; ��, �� # ��/ ��3 ��>�(�+ ��A ��/ ��' ��+ �� + ��' ��3 ��3 ��# ��3 ��-��>��+ ��$�� (�) ��3 ��3 ��3 ��>��/ ��(�

, �- ��

J �3 ��< ��3 # ��' ��(��9 ��$��3 ��A + 0 ��3 �� >��(��3 ��3 ��< ��>�# ��3 # ��0 ; ��/ ��/ �� >�# ��< ��3 ��3 ��(�) ��+ �(��, ��; ��/ �� / ��/ ��# ��/ �� # ��/ ��3 ��# ��/ ��/ ��(�=��/ �� ; ��3 ��+ ��3 ��-��3 ��# �A �(E ��(��3 ��K��/ ��3 �� 2 ��/ ��# ��3 ��(�

* �� !��# �A ��%��

A ��4��; ��/ ��# �� >��3 ��>; ��A E (�2 ��# ��# ��A ��3 ��=�� # ��/ ��# ��< ��# ��# ��3 ��/ ��3 ��(��/ �� 3 # ��0 ; ��/ ��3 ��K��/ ��3 �� 3 ��A ��>(�=��3 ��K�/ ��A �� !��(��(��(��%��3 ��>; ��A E (�

Principal Activities

) ��/ ��# ��# ��*��

. ��# ��/ ��3 ��
A # ��; ��
J �3 ��/ ��
A ��>��7 ��
. ��
) ��/ ��3 ��/ ��# ��; ��3 ��(

Significant changes in the state of affairs

) ��# ��*��

* ��

) ��# ��; ��# �C��1��# ��# � ��C�(�1��< ��(��&��' �� 3 ��3 ��(�� ) ��< ��>��9 ��(�

��

=��. ��3 ��# ��3 ��, ��+ ��4��:��+ ��) ��# �4�� , ��+ ��, ��+ ��' ��3 ��(��A �3 ��< ��# ��+ ��/ ��, ��+ �� 4��+ ��6��7 # ��/ ��3 ��, ��+ ��0 ��+ ��' �� (�

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

��. ��

=��. ��3 ��# ��# ��< ��J �3 ��C&( �� 8� ��# ��(��) ��< ��# ��(�

$��

��# ��0 . ��3 ��/ �� 3 ��*�A ��L�J �3 ��L��+ ��(��3 �� / ��3 ��; ��# �� 1 (��

��/ ��

) ��+ ��/ ��< ��; ��/ ��/ ��/ ��/ �� 3 ��>; (�

��+ ��/ ��; ��/ ��/ ��< ��/ ��< �� 3 ��/ ��H ��(�

) ��J �3 ��/ ��=��? �� >��+ �# ��(�

��* �- ��. ��)[��] 0 ��1) ) 2�

. ��5�' ��# ��# ��# ��# �� # ��C�(��*�

�% ��# ��# ��/ ��L�
��% ��; ��# �&8�&&&�&&8��# ��# ��3 K�� / ��L��
��% ��3 ��A ��3 ��(��

. �� # ��; ��# ��3 ��/ ��# �� / ��# ��/ ��!�� 3 �/ �%(�) ��1�A ��3 ��(�

. ��3 ��/ ��5��; ��/ ��

��-�; ��/ ��# ��/ ��3 ��!��# ��/ ��3 # �� ; ��# ��1�' ��1%��(�

�% 8��8��8��# ��!��%��K��# ��# ��4��L�
��% &��!��%��; ��/ ��4��(��) �� / ��/ ��/ ��(�

. ��8�A ��3 ��# ��3 ��/ ��M��A �� A ��3 ��# ��; ��3 ��/ ��/ �� A ��@ ��A ��

. ��A ��3 ��N��3 ��# ��(��:��5(�

��3 �/ ��# ��# ��# � ��# ��3 �� # ��(��

3 �4 ��( ��# ��

=��/ �� # ��; ��>��# ��3 ��K��# (�� # ��3 �# ��3 ��(��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

" ��

) ��# $��3 K��# ��/ ��A ��# � ��# ��# ��(

��5��

) ��3 ��3 ��# $��# ��&��' �� 3 ��3 # ��(�

��	6��	6��
	��- ��	��
	��
+ ��, ��	��	��
+ ��/ ��, ��	8	8
+ ��4��	5	5
+ ��6��7 # �	&	&
+ ��0 ��	��	�
+ ��' ��	�	�
+ �9 ��' ��# �	�	1
+ �4��:��
+ �) ��# 4��

��/ ��# ��/ ��3 ��3 # ��3 ��# $�� (�

�" �7 6" ��8 �$6��" / $�8 ��

) ��*�

�(�9 ��
, (��
�(�A ��/ ��
�(�A ��-3 ��

) ��/ ��-��< ��A ��A , ��8��(�) ��/ ��3 ��/ ��3 ��(��

�9�/ ��

��

) ��, ��3 ��/ ��0 ; ��/ �� ) ��(�

) ��, ��3 ��3 # �� / ��# ��>��/ ��3 K��/ ��; ��>��3 �� < ��# �, ��0 ; ��/ ��) ��(�) ��>�3 ��$��; ��/ ��$�� # (�

) ��, ��/ ��# ��# �� / ��3 # ��3 ��1��4��+ ��(�) ��$�� # ��(�

��

��/ ��3 ��3 ��(�) ��>�# ��3 ��/ �� 3 ��3 ��(�

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 ��

�9��

��>�# ��!��3 # ��A , ��8��%� ��3 ��(�

) ��>�# ��; ��/ ��*�

��

��, �� -0 ; ��/ �� . ��3 �� 2 ��3 �� + ��/ ��, �� 0 ; ��/ ��. �� 1�2 �3 ��# �� + �� 2 �� + ��4�� -0 ; ��/ �� 5��3 �� + ��6��7 # �� -0 ; ��/ �� + ��0 �� -0 ; ��/ �� :�� + ��' �� -0 ; ��/ �� . ��3 �� :�� + ��9 ��' ��# �� -0 ; ��/ �� ' ��# ��. ��3 �� . :��3 �� + ��4��:�� -0 ; ��/ �� :��. ��3 �� ' ��# ��. ��3 �� + ��) ��# �4�� -0 ; ��/ �� :��. ��3 ��

��' ��# ��. ��3 �� . ��3 ��3 �� :��3 �� :��. ��3 �� ' ��# ��. ��3 �� :��. ��3 ��

" # ��$��

��:�3 ��0 �� 0 ; ��/ ��. �� + ��' ��+ �� # �A ��# �� + ��0 �� # �A ��# �I��2 . + ��, �� 0 ; ��/ ��. ��M�J �3 ��9 �# �� + ��' ��0 �� 4��3 ��? ��OA ��P�M�A ��9 �# �� + ��A ��/ ��' �� 4��+ ��M��+ ��9 �# ��

!:��/ ��3 ��%� !:��. ��3 ��%� !��/ ��3 ��%� !��A ��3 ��%�

!��%�

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 ��

Consolidated Entity 2008	* ��:��- ��	3 ��:�� - ��	/ ��: ��( �� - ��	* ��:- ��(��	* ��:- ��(��
Name	* ��( ; �� �� 6��: ��( - �� $ $ $	8 �� - ��	* ��: �� $	* �� $	$��; ��	Total $
Executive director Mr D Burden (iii) Non-executive directors Mr A Barlow (from 22/10/07) Mr P Jermyn (to 7/12/07) Mr G Ridge( to 22/10/07) Mr C Ellison Mr T Grigg Mr D Jones (iv) Mr A Giles Mr A Vanzyl Other key management personnel Mr R Edge (i) Ms J Macpherson (ii) Mr D Element (from 1/11/07) Mr A Beecher (from 21/09/07) (v) Mr J Edis (v) Mr S Jones (from 7/4/08)	� ��51 - - &8� �5 - - �� - - &�� - - & �� - - �� 5 - - �� �8�8�& - �1�188 - - �� - - ��8�8�8 - - 8&�8�� - - �� - - �5 � �� �� ��1�� �� �� - �5�1� - -	��	�� - - - - - - - - 8��81 - - 5� 8 ��&5 ��&��	- - - - - - - - - - - - - �� -	8�� 5�� - - - - 5�� - - ��5 � �1�11� - - - -	�51�1 8 5&� �5 �� &�� & �� �� 5 �� 8 �1�188 �� ��8�� 1��5 �� ��1 8 �5��&5 &��5&�
Totals	<=�1�=>2< = ?� ?=! ) )	<) ) =) ) )	��=<1	?) =) ) )	<?2=<<?	<=?�>=1>�

!�%�:��/ ��3 ��(�

!��%�9 ��2 ��; ��, ��9 �# ��+ ��+ ��$��# ��/ ��4��# � A ��# ��/ ��(��:��. ��3 ��(�

!��%��0 ; ��/ ��. ��1�2 �3 ��# ��+ ��(�

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 ��

�9��

!�/ %�+ ��' ��-��3 ��C�8�8�&��&��. ��3 ��(��) ��3 ��/ �� 3 ��@ ��A ��(�� !/ %�+ ��, ��+ ��' ��0 ��3 ��C��&��+ ��(��) ��3 ��/ �� 3 ��. ��3 ��1�2 �3 ��# �� 0 . ��/ ��(�

Consolidated Entity 2007	Short-termbenefits	Post-employment benefits	Share- based payment
Name	Salary & fees Bonus Non- monetary benefits Other $ $ $ $	Super- annuation Other long- term employee benefit $ $	Options & rights $	Total $
Non-executive directors Mr P Jermyn Mr G Ridge Mr C Ellison Mr T Grigg Other key management personnel Mr D Jones Mr J Edis Mr E Balafas Mr D London Ms J Macpherson (i) Mr T Ward Mr A Wolf Mr R Edge Mr K Morris	� �� - - - &�� - - - &�� - - - &�� - - - � ��&&8 - - - ��8& - - - �&5��& - - - �� - - - ��8�51 - - - �� & - - - ��&1 - - - � �18� - - - 8��8 - - -	- - - - - - - - ��&5 - ��1� - ��1& - ��&81 - - - ��11& - ��5 - &��& - 8�� -	- - - - ��&& �&5�8�8 8�� �� �� 1 &�&�& - - ��&	� �� &�� &�� &�� ��&�1 &&��5&� � &�8�8 � ��& � �8��8�� ��&� 5 ��5�&&� ��1�1 18��5�
Totals	<= >?=�1> : : :	! 2= 1? :	2>= 1	1=) ��=<>2

!�%�9 ��2 ��; ��, ��9 �# ��+ ��+ ��$��# ��/ ��4��# � A ��# ��/ ��(�

�9�* ��

) ��>�# ��/ ��3 �� / ��(�) ��>�# � ��/ ��3 ��/ ��/ ��# �� ; ��(�) ��/ ��, ��/ �� >�# ��(�) ��K��/ ��3 ��< ��/ ��3 �� 3 ��(�

��, ��

) ��M��/ ��. ��3 ��(�, ��# ��/ ��C� ��3 �� / ��# �3 # ��, ��(�
��3 ��# �3 ��3 # ��# (�

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 ��

�9�* ��
��/ ��, ��+ ��
) ��M��-��1�2 �3 ��# ��(�
, ��# ��/ ��C&��3 ��/ ��# �3 # ��, ��(�
��3 ��# �3 ��3 # ��# (�
- ��4��
) ��M��/ ��5��3 ��(�) ��; ��4+ �� 3 ��3 ��(�
, ��# ��/ ��C ��3 ��/ ��# �3 # ��, ��
��3 ��# �3 ��3 # ��# (�
- ��6��7 # ��
) ��M��/ ��(�) ��; ��4+ �� 3 ��3 ��(�
, ��# ��/ ��C ��3 ��/ ��# �3 # ��, ��(�
��3 ��# �3 ��3 # ��# (�
��0 ��
) ��M��-��/ ��3 ��(�
9 ��C�� 4A ) ��# ��# (��
��3 ��# �3 ��3 # ��# (
A ��/ ��' ��! ��" ��# ��$�% ��" ��& ��
) ��M��-��8��(�
, ��# ��/ ��C� ��3 ��/ ��# �3 # ��, ��(�
��3 ��# �3 ��3 # ��# (�

+ ��, ��

) ��M��(�
, ��# ��/ ��C��3 ��/ ��# �3 # ��, ��(�
��3 ��# �3 ��3 # ��# (�
- ��' ��0 ��
) ��M��(�
, ��# ��/ ��C�� 3 ��/ ��# �3 # ��, ��(�
��3 ��# �3 ��3 # ��# (�

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 ��

�9�* ��:- ��

) ��; ��/ ��# ��# ��/ ��*� $��:�1) ) 2�

$��:1) ) 2
IssueDate Number of Options Expiry Date Exercise Price $	Value of options atgrant date Fair Value Per Option $ Date vested and exercisable
17-Oct-2007 833,333 30-Jun-2010 0.15 03-Mar-2008 20,500,000 10-Apr-2011 0.10 02-Apr-2008 5,000,000 30-Jun-2009 0.10 02-Apr-2008 5,000,000 30-Jun-2009 0.15 02-Apr-2008 5,000,000 31-Dec-2009 0.20 02-Apr-2008 5,000,000 30-Jun-2010 0.25 02-Apr-2008 5,000,000* 31-Dec-2010 0.30	16,667 0.0200 30-Jun-2008 147,500 0.0072 Immediately 8,500 0.0017 Immediately 4,500 0.0009 30-Jun-2008 6,500 0.0013 31-Dec-2008 9,000 0.0018 30-Jun-2009 12,000 0.0024 31-Dec-2009 204,667

Q�-�These options were subject to the performance condition that they would vest immediately if the volume weighted average price of Ansearch Limited shares trade at more than the exercise price of the option for 30 consecutive days; or the Company is sold at an implicit valuation of $150 million or more; or the CEO of the Company is made redundant.

$��:�1) ) ?�

$��:1) ) ?
Issue Date Number of Options Expiry Date Exercise Price $	Value of options atgrant date Fair Value Per Option $ Date vested and exercisable
13-Oct-2006 6,666,666 30-Jun-2008 0.10 13-Oct-2006 4,166,667 30-Jun-2008 0.15 13-Oct-2006 4,166,667 30-Jun-2008 0.20 30-Jun-2007 2,500,000 30-Jun-2009 0.15 30-Jun-2007 1,833,332 30-Jun-2009 0.10 30-Jun-2007 299,999 30-Jun-2009 0.10	178,630 0.027 Immediately 92,118 0.022 Immediately 78,071 0.019 Immediately 72,498 0.029 30-Jun-2007 60,514 0.033 30-Jun-2007 7,611 0.025 30-Jun-2007 489,442

) ��3 ��# ��# ��/ ��3 # ��; ��# � ��1�' ��1(�J ��; ��3 ��/ ��3 ��# �� (�

) ��; ��3 ��-��; ��(�

. ��# ��/ ��/ ��(�

) ��, ��# ��; ��/ ��# ��$��; ��>��(�

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued) �" �7 6" ��8 �$6��" / $�8 ��

�9�* ��:- ��

��/ ��# ��# ��/ �� >�# ��4��3 ��*�

Name	Number of options granted during theyear	Number of options granted during theyear	Number of options vested during theyear	Number of options vested during theyear
	2008	2007	2008	2007
Directors of Ansearch Limited Mr A Barlow ��'��('��) (� ��(+ Mr P Jermyn ��, , ��('��('��(' Mr G Ridge ��- + �" ��('��, , ��(' + ��/ ��, �� ��. " �/� �0 �(+ ��) (� ��(+ + ��4�� + ��6��7 # � + ��' �� + ��0 �� + �) 4�� Other Key Management Personnel Mr R Edge + �' + �� + ��0 �� + �' 0 �� Mr A Beecher + �A ' �� Mr D London Mr K Morris Mr E Balafas Mr T Ward	�� - - � �� - - �� - - �� �&&�&&& - - - - - - - -	- - - - - - �� - - - �&&�&&& - �� - - 111�111 &&&�&&& �11�111 �&&�&&&	�� - - �� - - �� - - �� �&&�&&& - - - - - - - -	- - - - - - �� - - - �&&�&&& - �� - - 111�111 &&&�&&& �11�111 �&&�&&&

) ��/ ��; ��/ ��< ��# ��/ �� / ��3 ��3 �/ �(�2 ��/ ��# �� , ��>-A ��>��; �� ; ��/ ��# ��# ��; ��/ ��# ��>�� (�

) ��# ��&��' ��*�

) ��	��	��# ��	��&�' ��	��	��*
Model Input	Class #1	Class #2	Class #3	Class #4	Class #5	Class #6	Class #7
Grant Date	17/10/07	31/03/08	02/04/08	02/04/08	02/04/08	02/04/08	02/04/08
Exercise Date	30/06/08	03/03/08	02/04/08	30/06/08	31/12/08	30/06/09	31/12/09
Expiry Date	30/06/10	10/04/11	30/06/09	30/06/09	31/12/09	30/06/10	31/12/10
Exercise Price	$0.15	$0.10	$0.10	$0.15	$0.20	$0.25	$0.30
Exercise Factor	2.5	2.5	2.5	2.5	2.5	2.5	2.5
Price at Grant Date	$0.064	$0.019	$0.015	$0.015	$0.015	$0.015	$0.015
Expected Volatility	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
Expected Dividend Yield	0%	0%	0%	0%	0%	0%	0%
Risk Free Interest Rate	6.56%	6.26%	6.26%	6.26%	6.26%	6.26%	6.26%

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 ��

�9�* ��:- ��

) ��# ��&��' ��*�

Model Input	Class #1	Class #2	Class #3	Class #4	Class #5	Class #6	Class #7
Grant Date	13/10/06	13/10/06	13/10/06	13/10/06	13/10/06	13/10/06	13/10/06
Exercise Date	13/10/06	13/10/06	30/06/07	30/06/07	30/06/07	30/06/07	30/06/07
Expiry Date	30/06/08	30/06/08	30/06/09	30/06/08	30/06/09	30/06/09	06/09/09
Exercise Price	$0.20	$0.15	$0.15	$0.10	$0.10	$0.10	$0.10
Exercise Factor	2.5	2.5	2.5	2.5	2.5	1.5	1.5
Price at Grant Date	$0.064	$0.064	$0.064	$0.064	$0.064	$0.064	$0.064
Expected Volatility	114.5%	114.5%	114.5%	114.5%	114.5%	114.5%	114.5%
Expected Dividend Yield	0%	0%	0%	0%	0%	0%	0%
Risk Free Interest Rate	5.78%	5.78%	5.78%	5.78%	5.78%	5.78%	5.78%

" 9��

2 ��3 ��*�

��	��3 ��*
Name	A Remuneration consisting of options	B Value at grant date	C Value at exercise date	D Value at lapse date
Mr A Barlow Mr P Jermyn Mr G Ridge Mr D Burden Mr A Giles Mr A Vanzyl Mr D Jones Mr C Ellison Mr T Grigg Mr R Edge Ms J Macpherson Mr D Element Mr J Edis Mr A Beecher Mr S Jones	1&(�8N - - ��( 5N - - &�(�1N - - �(&&N ��(�8N - - - -	5�� - - 8�� - - 5�� - - ��5 � �1�11� - - - -	- - - - - - - - - - - - - - -	- - - - - - - - - - - - - - -

��R �) ��/ ��3 ��/ ��,

, �R �) ��/ ��A , ��# ��

��R �) ��/ ��; ��; ��# ��

��R �) ��/ ��# ��

) ��>��(��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

$8 @ " ��6+ $��8 �$6�

* ��

@ ��# ��*�

��# ��	��*
Issue Type Expiry Date Exercise Price $	Number under option
Ordinary options 10 Apr 2011 0.10 Ordinary options 30 Jun 2009 0.10 Ordinary options 30 Jun 2009 0.15 Ordinary options 31 Dec 2009 0.20 Ordinary options 30 Jun 2010 0.25 Ordinary options 31 Dec 2010 0.30 Ordinary options 10 Apr 2011 0.10 Ordinary options 30 Jun 2009 0.10 Ordinary options 30 Jun 2010 0.15 Ordinary options 31 Dec 2008 0.04 Ordinary options 30 Jun 2012 0.02 Total	17,500,000 5,000,000 7,500,000 5,000,000 5,000,000 5,000,000 500,000 1,066,665 1,066,665 12,385,400 30,100,000
	90,118,730

��# ��# ��# ��# ��# (�

��$��

) ��# ��# ��3 ��# �� 3 ��# ��/ ��# ��3 ��# ��; �� # ��(�

A ��# ��# �� 4��# �� # ��/ ��/ ��*�

!�% ��3 ��# L��

!3 % ��/ ��A ��&�! %��!1%��

��3 # ��8��!&%��(�

��3 ��3 # ��(�

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Directors’ Report (Continued)

��5��

) ��$��# ��&��' ��3 ��/ ��3 �� (�

/ ��- ��( �

��0 ��1 ��& ��

��# ��# �K��J �/ ��9 �# �� 1 ��. ��0 A �9 �# ��C��/ ��K��< ��# ��>�� (�J ��>��# ��J �/ ��K�� / ��# ��# (�� C8��-�C5��(�

6��* ��

) ��3 ��$��/ ��-��/ ��# ��3 �� 3 # ��4�/ ��(�) ��/ �� 3 ��; ��$��*�

��M��/ ��/ ��/ ��3 # ��# ��/ ��# � ��# ��3 K��/ ��# ��L��
) ��/ ��/ �� 9 0 A ��0 ��9 ��(�

��

, �. �E ��G ��!�A J -6=�%�9 �# ��# $��(�

) ��(�

==> picture [145 x 40] intentionally omitted <==

��, �� &��A ��3 ��

==> picture [153 x 32] intentionally omitted <==

The Board of Directors Ansearch Limited Level 3, 95 Coventry Street South Melbourne VIC 3205

==> picture [170 x 151] intentionally omitted <==

DECLARATION OF INDEPENDENCE BY MICHAEL CLIMPSON TO THE DIRECTORS OF ANSEARCH LIMITED

As lead auditor of Ansearch Limited for the year ended 30 June 2008, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.

==> picture [97 x 34] intentionally omitted <==

Michael Climpson Director

==> picture [97 x 28] intentionally omitted <==

BDO Kendalls Audit & Assurance (NSW-VIC) Pty Ltd Chartered Accountants

Melbourne, 30[th] of September 2008

BDO Kendalls is a national association of separate partnerships and entities. Liability limited by a scheme approved under Professional Standards Legislation.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Income Statements

For the year ended 30 June 2008

Income Statements For the year ended 30 June 2008
		CONSOLIDATED		COMPANY
		2008	2007	2008	2007
	Notes	$	$	$	$
Total revenue from continuing operations	�	��	��	��	��
Direct costs of revenue generation		��	��	�	�
Depreciation and amortisation expenses		��	��	��	��
Finance costs		��	��	��	��
Salaries and employment related costs (including		��	��	��	��
contractors)
Telephone and internet		��	��	��	��
Share based payment expense		��	��	��	��
Marketing costs		��	��	��	��
Lease – rental premises		��	��	��	��
Provision for impairment of intangibles		��	��	�	�
Provision for impairment of receivables		��	��	��	��
Impairment of Intangibles		��	�	�	�
ASX fees		��	��	��	��
Legal fees		��	��	��	��
Travel expenses		��	��	��	��
Domain names and licences		��	��	�	�
Audit and accountancy fees		��	��	��	��
Other expenses		��	��	��	��
Loss before income tax expense	�	��	��	��	��
Income tax expense	�	�	�	�	�
Loss from continuing operations		��	��	��	��
Profit/(loss) from discontinued operations	��	�	�	�	�
Loss for the year		��	��	��	��
Loss attributable to minority interest		�	�	�	�
Loss attributable to members of Ansearch Limited	��	��	��	��	��
		��	��
		��	��
Earnings per share (EPS) from loss from continuing
operations attributable to the ordinary equity holders of
the company
Basic earnings per share	��	��	��
Earnings per share (EPS) from loss attributable to the
ordinary equity holders of the company
Basic earnings per share	��	��	��
Diluted earnings per share		��	��

The above Income Statements should be read in conjunction with the accompanying notes.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Balance Sheets As at 30 June 2008

		CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
		2008	2007	2008	2007
	Notes	$	$	$	$
CURRENT ASSETS
Cash and cash equivalents	�	��	��	��	��
Trade receivables	�	��	��	��	��
Other	�	��	��	��	��
Total current assets		��	��	��	��
NON-CURRENT ASSETS
Receivables	��	�	�	�	��
Other financial assets	��	�	�	��	��
Property, plant & equipment	��	��	��	��	��
Intangible assets	��	��	��	�	�
Total non-current assets		��	��	��	��
Total assets		��	��	��	��
CURRENT LIABILITIES
Payables	��	��	��	��	��
Other	��	��	��	�	��
Total current liabilities		��	��	��	��
Total liabilities		��	��	��	��
NET ASSETS		��	��	��	��
EQUITY
Issued capital	��	��	��	��	��
Reserves	��	��	��	��	��
Retained losses	��	��	��	��	��
TOTAL EQUITY		��	��	��	��

The above Balance Sheets should be read in conjunction with the accompanying notes.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Statements of Changes in Equity For the year ended 30 June 2008

		CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
		2008	2007	2008	2007
	Notes	$	$	$	$
Total equity at the beginning of the financial year		��	��	��	��
Increase in employee share based payments reserve	��	��	��	��	��
Net expense recognised directly in equity		��	��	��	��
Loss for the year attributable to members of the company	��	��	��	��	��
Loss attributable to minority interests		�	�	�	�
Total recognised income and expense for the year		��	��	��	��
Transactions with equity holders in their capacity as equity
holders:
Contributions of equity, net of transaction costs		��	��	��	��
Changes in minority interests from disposals		�	�	�	�
Total equity at the end of the financial year		��	��	��	��

The above Statements of Changes in Equity should be read in conjunction with the accompanying notes.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Cash Flow Statements

For the year ended 30 June 2008

		CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
		2008	2007	2008	2007
	Notes	$	$	$	$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from trade and other debtors (inclusive of GST)		��	��	��	��
Interest received		��	��	��	��
Payments to trade creditors, other creditors and employees		��	��	��	��
(inclusive of GST)
Interest paid		��	��	��	��
Net cash outflows from operating activities	��	��	��	��	��
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment		��	��	��	��
Payments for controlled entities, net of cash acquired		��	��	�	��
Loans to controlled entities		�	�	��	��
Net cash outflows from investing activities		��	��	��	��
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares		��	��	��	��
Repayment of convertible note		�	��	�	��
Net cash inflows from financing activities		��	��	��	��
Net (decrease)/increase in cash held		��	��	��	��
Cash at the beginning of the financial year		��	��	��	��
CASH AT THE END OF THE FINANCIAL YEAR	�	��	��	��	��

The above Cash Flow Statements should be read in conjunction with the accompanying notes.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements

For the year ended 30 June 2008

1. Summary of Significant Accounting Policies

The financial report covers Ansearch Limited and controlled entities (“Group”), and Ansearch Limited as an individual parent company (“Company”). Ansearch Limited is a listed public company, incorporated and domiciled in Australia. The financial report is for the financial year ended 30 June 2008 and is presented in Australian dollars.

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Going concern

The financial report for the year ended 30 June 2008 has been prepared on a going concern basis.

As a developing business, the Group has experienced full year operating losses of $6,270,666 and net cash outflows from operating activities of $2,552,714 and has a working capital deficiency. The continuing viability of the company and its ability to continue as a going concern is dependent upon the Group being successful in its current efforts in accessing additional sources of capital and/or revenue.

As a result there is a level of uncertainty whether the Group will continue as a going concern and, therefore, whether it will realise its assets and settle its liabilities and commitments in the normal course of business and at the amounts stated in the financial report. However, the directors believe that the Group will be able to access sufficient sources of funds and, accordingly, have prepared the annual financial report on a going concern basis. At this time, the directors are of the opinion that no asset is likely to be realised for an amount less than the amount at which it is recorded in the financial report at 30 June 2008.

Accordingly, no adjustments have been made to the financial report relating to the recoverability and classification of the asset carrying amounts or the amount and classification of liabilities that might be necessary should the Group not continue as a going concern.

Refer to note 1(x) for a description of the significant items considered by management in assessing the going concern of the Group.

(b) Basis of preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations), other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.

Compliance with IFRS

Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial statements and notes of Ansearch Limited comply with International Financial Reporting Standards (IFRS).

Adoption of new and revised accounting standards

The Group adopted the following Standards as listed below which only impacted on the Group’s financial statements with respect to disclosure:

Revised AASB 101 Presentation of Financial Statements (issued October 2006)
AASB 7 Financial Instruments: Disclosures

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued)

For the year ended 30 June 2008

1. Summary of Significant Accounting Policies (Continued)

(b) Basis of preparation (Continued)

Early adoption of standards

The Group has elected to apply s.334(5) of the Corporations Act 2001 to apply AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 even though the Standards are not required to be applied until reporting periods beginning on or after 1 January 2009. AASB 8 replaces AASB 114 Segment Reporting.

AASB 8 is a disclosure standard which has resulted in a redesignation of the Group’s reportable segments (see note 2), but has no impact on the reported results or financial position of the Group. The operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by senior management in order to allocate resources to the segment and to assess its performance. This has resulted in an increase in the number of reportable segments presented. As goodwill is allocated by management to groups of cash generating units at a segment level, the change in reportable segments has required a reallocation of goodwill of $5,132,469 from the Ansearch operating segment to the newly identified operating segment ‘web development and hosting’. This in itself has not resulted in any impairment of goodwill.

Historical cost convention

These financial statements have been prepared under the historical cost convention.

Critical accounting estimates

The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates. The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

(c) Principles of consolidation

Subsidiaries

The consolidated financial statements comprise those of the Company, and the entities it controlled at the end of, or during, the financial year. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefit from its activities. The balances and effects of transactions between entities in the consolidated entity included in the financial statements have been eliminated. Where an entity either began or ceased to be controlled during the year, the results are included only from the date control commenced or up to the date control ceased. The accounting policies adopted in preparing the financial statements have been consistently applied by entities in the consolidated entity.

Investments in subsidiaries are accounted for at cost in the individual financial statements of Ansearch Limited.

(d) Cash and cash equivalents

For the purposes of the cash flow statement, cash includes deposits at call which are readily convertible to cash and are not subject to significant risk of changes in value, net of bank overdrafts.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued)

For the year ended 30 June 2008

1. Summary of Significant Accounting Policies (Continued)

(e) Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and any impairment in value. The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Depreciation is calculated on a straight line basis for all plant and equipment. Estimates of remaining useful lives are made on a regular basis.

The following depreciation rates are used for each class of depreciable asset:

Computer & Office Equipment 20 – 40% per annum Furniture & Fittings 20 – 25% per annum Leasehold Improvements 20% per annum Software 40% per annum R & D Equipment 30 – 40% per annum

(f) Receivables

Trade receivables are recognised initially at fair value and thereafter are measured at amortised cost, less provision for impairment. They are non-derivative financial assets with fixed or determinable amounts not quoted in an active market. Trade accounts receivable are generally settled between 14 and 60 days and carried at amounts recoverable.

Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the income statement. Subsequent recoveries of amounts previously written off are credited against the allowance account.

(g) Trade and other creditors

Trade accounts payable and other creditors represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 45 days of recognition.

(h) Borrowings

Borrowings are initially recognised at fair value (less transaction costs) and subsequently measured at amortised cost. Any difference between the proceeds and the redemption amount is recognised in the income statement over the period of the borrowing using the effective interest rate method.

(i) Finance costs

Finance costs are recognised as expenses in the period in which they are incurred except where they are incurred in the construction of a qualifying asset in which case the finance costs are capitalised as part of the asset.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

1. Summary of Significant Accounting Policies (Continued)

(j) Income tax

The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

Tax consolidation legislation

Ansearch Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation. The head entity, Ansearch Limited, and the controlled entities in the tax consolidated group account for their own current and tax deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a standalone taxpayer in its own right.

In addition to its own current and deferred tax amounts, Ansearch Limited also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group.

(k) Employee benefits

Wages and salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled within 12 months of the reporting date are recognised in other creditors in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued)

For the year ended 30 June 2008

1. Summary of Significant Accounting Policies (Continued)

(k) Employee benefits (Continued)

Long service leave

The liability for long service leave expected to be settled within 12 months of the reporting date is recognised in current payables and is measured at the amount expected to be paid when the liabilities are settled. The liability for long service leave expected to be settled more than 12 months from the reporting date, is recognised in the non-current provision for employee benefits. It is accrued in respect of all employees at the present value of future amounts expected to be paid based on a projected weighted average increase in wage and salary rates over an average period of 12 years. Present values are calculated using a weighted average rate based on government guaranteed securities. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

Share-based compensation benefits

Shares options granted before 7 November 2002 and/or vested before 1 January 2005 No expense is recognised in respect of these options. The shares are recognised when the options are exercised and the proceeds received allocated to share capital.

Shares options granted after 7 November 2002 and vested after 1 January 2005 The fair value of options is recognised as an employee benefit expense with a corresponding increase in equity. The fair value is measured at grant date and recognised over the period during which the employees become unconditionally entitled to the options.

The fair value at grant date is determined using a binomial option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.

Upon the exercise of options, the balance of the share-based payments reserve relating to those options is transferred to share capital and the proceeds received, net of any directly attributable transaction costs, are credited to share capital.

(l) Intangible Assets

Goodwill

Goodwill is calculated as the excess of the fair value of consideration paid over the fair value of the identifiable net assets of the entity or operations acquired. Goodwill acquired in business combinations is not amortised. Instead, goodwill is tested for impairment annually, being allocated to the cash flows of the relevant cash generating unit and is carried at cost less accumulated impairment losses.

Intellectual property

The intellectual property relates to the names, branding and domains acquired as a result of the acquisition of Webfirm and Searchworld. The carrying value is tested for impairment annually or more frequently if events or changes in circumstances indicate impairment. It is carried at cost less impairment losses .

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued)

For the year ended 30 June 2008

1. Summary of Significant Accounting Policies (Continued)

(l) Intangible Assets (Continued)

Research & Development expenditure

Expenditure on research activities, undertaken with the prospect of obtaining new scientific or technical knowledge and understanding, is recognised in the income statement as an expense when it is incurred.

Expenditure on development activities, being the application of research findings or other knowledge to a plan or design for the production of new or substantially improved products or services before the start of commercial production or use, is capitalised if the product or service is technically and commercially feasible and adequate resources are available to complete development. The expenditure capitalised comprises all directly attributable costs, including costs of materials, services, direct labour and an appropriate proportion of overheads. Other development expenditure is recognised in the income statement as an expense as incurred. Capitalised development expenditure is stated at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the cost over the period of the expected benefit. The carrying value is tested annually for impairment.

Domain name

The Anzwers domain name was acquired in February 2006 and brought to account at cost. The carrying value is tested for impairment annually or more frequently if events or changes in circumstances indicate impairment. It is carried at cost less impairment losses.

(m) Leased assets

Leases of assets under which the consolidated entity assumes substantially all the risks and benefits of ownership are classified as finance leases as distinct from operating leases under which the lessor effectively retains substantially all such risks and benefits. Property, plant and equipment acquired by finance leases is capitalised at the present value of the minimum lease payments as a finance lease asset and as a corresponding lease liability from date of inception of the lease. Lease assets are amortised over the period the entity is expected to benefit from the use of the assets or the term of the lease, whichever is shorter. Finance lease liabilities are reduced by the component of principal repaid. Lease payments are allocated between the principal component of the liability and interest expense.

Other operating lease payments are charged to the income statement on a straight-line basis over the period of lease term.

(n) Other financial assets

The company only has investments in controlled entities which are carried in the financial report at cost less any impairment losses.

(o) Goods and services tax

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

i. Where the amount of GST incurred is not recoverable from taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or
ii. For receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

1. Summary of Significant Accounting Policies (Continued)

(p) Revenue recognition

Amounts disclosed as revenue are net of returns, allowances and duties and taxes paid.

Revenue is recognised for the major business activities as follows:

Rendering of services

Service revenue is recognised when all of the benefits of the service have been passed onto the customer.

Website development revenue is recorded based on a twelve (12) week program of project delivery. Any projects not completed within this period are deemed to be twenty percent (20%) incomplete. Website hosting, search engine renewal and domain name registration revenue is recorded over a one year duration. Prepaid revenue calculated in this regard is excluded from revenue and is being treated as unearned revenue in the Balance Sheet.

Interest revenue

Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.

Sale of non-current assets

The net gain from the sale of non-current asset sales is recognised in income at the date control of the asset passes to the buyer, usually when the signed contract of sale becomes unconditional.

(q) Acquisition of assets

The purchase method of accounting is used for all acquisitions of assets regardless of whether equity instruments or other assets are acquired. Cost is measured as the fair value of the assets given up, shares issued or liabilities undertaken at the date of acquisition plus incidental costs attributable to the acquisition. Where equity instruments are issued in an acquisition, the value of the instruments is their market price as at the date of acquisition, unless the notional price at which they could be placed in the market is a better indicator of fair value. Transaction costs arising on the issue of equity instruments are recognised directly in equity.

Any deferred settlement of cash consideration is discounted to its present value as at the date of acquisition. The discount rate used is the incremental borrowing rate that the Company can obtain from an independent financier under comparable terms and conditions.

(r) Leasehold improvements

The cost of improvements to leasehold properties is amortised over the unexpired period of the lease or the estimated useful life of the improvement to the consolidated entity, whichever is the shorter.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

1. Summary of Significant Accounting Policies (Continued)

(s) Earnings per share

(i) Basic earnings per share

Basic earnings per share for continuing operations and total operations attributable to members of the Company are determined by dividing net profit after income tax from continuing operations and the net profit attributable to members of the Company respectively, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial period. The number of shares used in the calculation at any time during the period is based on the physical number of shares issued.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

(t) Dividends

Provision is made for the amount of any dividend determined or recommended by the directors on or before the end of the financial year but not distributed at balance date.

(u) Discontinued operations

A discontinued operation is a business unit or investment of the Company that has been disposed of or which the Company has lost control of, or in the case of an investment in a joint venture where the Company has ceased active involvement or the operating activities of the investee. The results of discontinued operations are disclosed separately on the face of the income statement.

(v) Impairment of assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

(w) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the Chief Executive Officer.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

==> picture [128 x 24] intentionally omitted <==

1. Summary of Significant Accounting Policies (Continued)

(x) Critical accounting judgements and key sources of estimation uncertainty

Critical judgements in applying the entity’s accounting policies

The following are the critical judgements (apart from those involving estimations, which are dealt with below), that management has made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

(i) Revenue recognition

In light of the record of total contract revenue in advance in web development and web hosting business operations, management was required to consider whether it was appropriate to recognise the revenue from these transactions in the current period, in line with Group’s general policy of recognising revenue to be comparable with services rendered. In making its judgement, management considered the standard duration of such contracts, stage of progress in contracts and commencement date of such contracts. Accordingly, management has deferred recognising some web development and web hosting revenue comparable with services to be rendered in the future.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future and other key estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(i) Impairment of goodwill and intangible assets

Determining whether goodwill and intangible assets are impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cashgenerating unit and a suitable discount rate in order to calculate the present value.

The carrying amount of goodwill and intangible assets at the balance sheet date was $3,150,000 (2007: $4,982,823) after an impairment loss of $2,432,469 (2007: $30,870) was recognised during the current financial year. Refer to Note 13 for further details.

(ii) Going concern

As described in note 1(a), the financial statements have been prepared on a going concern basis. Significant matters considered by the Directors in determining that it is appropriate for the financial report to be prepared on a going concern basis include:

• A cash injection for additional issued capital was received subsequent to year end in the amount of $1,276,000;

• The Directors believe that the Group will be successful in raising additional sources of capital in the future from the share purchase plan currently being offered to all shareholders;

• The Group has recently launched new products in the Searchworld and Webfirm divisions, which the directors expect to gain traction over the coming months;

Operating profitability has been improving with the appointment of a new CEO; and
Management will continue to monitor and reduce expenditure if further revenues do not
materialise, or should the share purchase plan not receive the anticipated take up rate.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

(y) New standards and interpretations issued but not effective

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2008 reporting periods, and have not yet been adopted by the Group. The Group’s and the parent entity’s assessment of the impact of these new standards and interpretations is set out below.

Revised AASB 101 Presentation of Financial Statements introduces as a financial statement (formerly ‘primary’ statement) the ‘Statement of Comprehensive Income’. The revised standard does not change the recognition, measurement or disclosure of transactions and events that are required by other AASBs. The revised AASB 101 will become mandatory for the Group’s 30 June 2010 financial statements. The Group has not yet determined the potential effect of the revised standard on the Group’s disclosures.
Revised AASB 123 Borrowing Costs removes the option to expense borrowing costs and requires that entity capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. The revised AASB 123 will become mandatory for the Group’s 30 June 2010 financial statements, but will not represent a change of accounting policy for the Group.
Revised AASB 3 Business Combinations makes certain changes affecting future acquisitions only (such as the requirement to expense instead of capitalising acquisition costs, and a different treatment of step acquisitions). As there is no impact on the accounting treatment of previous acquisitions, there should be no financial impact upon initial adoption of this revised standard.
Revised AASB 127 Consolidated and Separate Financial Statements makes certain changes in relation to measurement of subsidiaries held for sale. This amendment will have no impact when first adopted because the Group uses the cost method to account for its investments in subsidiaries.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

2. Segment Information

2008 Business segments Revenue External sales Total revenue from continuing operations Result Segment result from continuing operations Interest revenue Interest expense Other income Share based and other expenses Impairment of intangibles Loss before tax Income tax expense Loss for the period from continuing operations Other segment items included in the income statement are as follows: Depreciation (note 12) Amortisation (note 12) Additions to non-current assets Balance Sheet Segment assets Segment liabilities Net assets	Corporate Search Media Display Media Owned & Operated Sites Web Development & Hosting Unallocated or Eliminated - 5,718,873 1,944,977 759,585 3,586,741 140,300 - 5,718,873 1,944,977 759,585 3,586,741 140,300	Total 12,150,476 12,150,476
	(5,117,727) 1,415,221 (831,139) (741,892) (484,779) 1,649,294 53,815 - 7,653 6,347 53,928 3,392 42,362 - - - 13,023 - 328,018 - 265 - 177,644 16,490 11,307,211 2,241,967 965,548 6,422,801 3,471,400 (17,734,052) (8,638,701) (2,097,700) (2,805,588) (9,075,448) (5,429,671) 25,138,624	(4,111,022) 109,513 (6,862) 6,971 (276,797) (2,442,469) (6,720,666) -
		(6,720,666)
		125,135 55,385 522,417 6,674,875 (2,908,484)
	2,668,510 144,267 (1,840,040) (2,652,647) (1,958,271) 7,404,572	3,766,391

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

2. Segment Information (Continued)

2007 Business segments Revenue External sales Total revenue from continuing operations Result Segment result from continuing operations Interest revenue Interest expense Other income Share based and other expenses Loss before tax Income tax expense Loss for the period from continuing operations Other segment items included in the income statement are as follows: Depreciation (note 12) Amortisation (note 12) Additions to non- current assets Balance Sheet Segment assets Segment liabilities Net assets	Corporate Search Media Display Media Owned & Operated Sites Web Development & Hosting Unallocated or Eliminated - 1,809,566 1,696,800 2,810,645 1,898,585 102,186 - 1,809,566 1,696,800 2,810,645 1,898,585 102,186	Total 8,317,782 8,317,782
	(2,319,611) 446,167 (608,560) 775,564 917,331 (112,660) 10,209 - 3,354 8,969 - 1,824 6,777 - - - - - 161,082 - 21,838 12,657 121,769 8,114 10,062,578 1,798,566 628,327 4,334,302 1,244,367 (6,129,443) (6,744,974) (1,352,399) (1,633,137) (6,296,732) (837,068) 11,143,133	(901,769) 49,640 (131) 38,985 (520,074) (1,333,349) -
		(1,333,349)
		24,356 6,777 325,460 11,938,697 (5,721,177)
	3,317,604 446,167 (1,004,810) (1,962,430) 407,299 5,013,690	6,217,520

Notes to and forming part of the segment information

Business segments

The consolidated entity is organised into the following segments by product and service type:

Search Media

Driving on-line users to websites through provision of contextually mapped search advertising.

Display Media

Commercialises the audience by generating revenue from a websites’ end users through traditional display advertising.

Owned & Operated Sites

Directed at audience acquisition through provision of high quality search engines.

Web Development and Hosting

Designing and developing websites, maintenance of the sites ongoing, and promoting the websites.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

2. Segment Information (Continued)

Geographical information

Revenues from external customers are attributed to individual countries based on the invoiced address for the services. Revenue for the 2007 financial year was generated in Australia.

	Revenue from	Revenue from	Non-current	Non-current
	external customers		assets
	2008	2007	2008	2007
	$	$	$	$
Continuing Operations
Australia	��	��	��	��
North America	��	�	�	�
Total revenue from continuing operations	��	��	��	��

Accounting policies

Segment revenues, expenses, assets and liabilities are those that are directly attributable to a segment and the relevant portion that can be allocated to the segment on a reasonable basis. Segment assets include all assets used by a segment and consist primarily of operating cash, receivables, capitalised R&D and other intangible assets, net of related provisions but does not include non-current inter-entity assets and liabilities which are considered quasi-equity in substance. Segment liabilities consist primarily of trade and other creditors, employee benefits and sundry provisions and accruals. Segment assets and liabilities do not include income taxes.

Inter-segment transfers

Segment revenues, expenses and results include transfers between segments. Such transfers are priced on an arm’s-length basis and are eliminated on consolidation.

		CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
		2008	2007	2008	2007
		$	$	$	$
3.	Revenue
	Continuing Operations
	Sales revenue	��	��	�	�
	Interest revenue	��	��	��	��
	Gain on settlement of convertible note	�	��	�	��
	Sundry income	��	��	�	��
	Total revenue from continuing operations	��	��	��	��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

		CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
		2008	2007	2008	2007
		$	$	$	$
4.	Expenses
	Loss before income tax includes the following
	specific expenses:
	Amortisation and depreciation
	Amortisation – Leasehold improvements:	��	��	��	��
	Depreciation – Plant & Equipment	��	��	��	��
	Finance costs
	Interest paid/payable to unrelated entities	��	��	��	��
	Other charges against assets
	Impairment of intangibles	��	��	�	�
	Impairment of receivables	��	��	��	��
	Rental expense – operating leases	��	��	��	��
	Defined contribution superannuation expense	��	��	�	��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

			CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
			2008	2007	2008	2007
		Notes	$	$	$	$
5	Income Tax Expense
	(a) Numerical reconciliation of income tax expense
	to prima facie tax benefit
	Loss for the year		��	��	��	��
	Prima facie tax benefit on loss before income tax at
	30% (2007: 30%)
	Economic entity		��	��
	Parent entity				��	��
	Tax effect of:
	Other non-allowable items		��	��	��	��
	Write-downs to recoverable amounts		��	�	�	��
	Share options expensed during year		��	��	��	��
	Sundry items		��	��	��	��
			��	��	��	��
	Deferred tax assets not recognised		��	��	��	��
	Income tax expense attributable to entity		�	�	�	�
	(b) Deferred Tax Assets Not Brought to Account*
	Deferred tax assets not brought to account, the
	benefits of which will only be realised if the
	conditions for deductibility set out on Note 1(j) occur
	Temporary differences		��	��	��	��
	Tax Losses:
	Operating losses		��	��	��	��
	Capital losses		��	��	��	��
			��	��	��	��

*Deferred tax assets not brought to account at 30 June 2008 are less than closing comparative balance plus current year movements. This is due to forfeiture of some carry forward tax losses due to changes in business operations and ownership. These changes have resulted in the group no longer meeting the same business or same ownership tests.

6. Dividends

No dividends were declared in the current year or prior year by the Company. There are no franking credits available to shareholders of the Company.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

		CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
		2008	2007	2008	2007
	Notes	$	$	$	$
Cash and cash equivalents
Cash at bank and on hand		��	��	��	��

7. Cash and cash equivalents

8. Receivables

Receivables
Current:
Trade debtors	��	��	��	��
Provision for impairment of receivables	��	��	�	��
	��	��	��	��
Other receivables	��	��	��	��
Provision for impairment of other receivables (ii)	��	��	��	��
	��	��	��	��

‘Other receivable’ amounts generally arise from transactions outside the usual operating activities of the consolidated entity. No interest is chargeable and collateral is generally not obtained.

a) Impairment of receivables:

(i) The average credit period on sale of goods and rendering of services in the owned & operated site and search and display media segments is 45 days. No interest is charged on trade receivables exceeding normal credit terms. An allowance has been made for estimated non-recoverable trade receivable amounts arising from the past sale of goods and rendering of services, determined by reference to past default experience.

The website development and hosting segment invoices the customer on the full sales values at sale date with collection terms being related to various contract completion stages of website development and annual hosting services. A particular debt exceeding 90 days does not necessarily mean delinquent debt as the contract may still be at work in progress stage with corresponding debtor balance not due for collection.

Before accepting any new customers, the Group internally reviews the potential customer’s credit quality. A substantial deposit on contract in website development and hosting segment of the Group mitigates initial credit risk.

Included in the Group’s trade receivable balances are debtors with a carrying amount of $548,527 (2007: $818,861) which are past due at the reporting date for which the Group has not provided as there has not been a significant change in credit quality and the amounts are still considered recoverable. The Group does not hold any collateral over these balances. The average age of these receivables is 96 days (2007: 97 days).

(ii) Included in other receivables is an amount of $800,000 due under the terms of a Sale and Purchase Agreement pursuant to the disposal of 65% equity in Optum ES Pty Ltd. This amount has become delinquent and the company has commenced legal action in the Supreme Court of Western Australia. A full provision has therefore been made against this amount. Also included is an amount of $1,363,343 which was the outstanding balance on the intercompany loan from Ansearch Limited to Optum E S Pty Ltd at the date of deconsolidation. As this is no longer an intercompany account, it has been recognised in ‘Other receivables’ from 2007. The balance has been fully provided for in prior years and the impairment provision has also been reclassified to this note.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

8. Receivables (Continued)

Ageing of receivables is as follows:

Ageing of past due but not impaired

	CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
	2008	2007	2008	2007
	$	$	$	$
60 – 90 days	��	��		�	�
Over 91 days	��	��		�	�
	��	��		�	�

Movement in the allowance for doubtful debts

Movement in the allowance for doubtful debts
	CONSOLIDATED		COMPANY
	2008	2007	2008	2007
	$	$	$	$
Balance at beginning of the year	��	�	��	�
Provision for impairment recognised during the year	��	��	�	��
Amounts written off as uncollectible	��	�	��	�
Amounts recovered during the year	��	�	�	�
Balance at the end of the year	��	��	�	��

In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to reporting date. The concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly, the directors believe that there is no further credit provision required in excess of the allowance for doubtful debts.

b) Fair value of receivables:

Fair value of receivables at year end is measured to be the same as receivables net of provision for impairment.

			CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
			2008	2007	2008	2007
		Notes	$	$	$	$
9.	Current Assets – Other
	Income tax refundable		��	�	�	�
	Sundry		��	�	�	�
	Prepayments (i)		��	��	��	��
			��	��	��	��

(i) Prepayments have amortisation periods of less than 12 months.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

Notes 10. Receivables Non-current: Amounts owing by controlled entities Impairment of amounts	CONSOLIDATED COMPANY 2008 2007 2008 2007 $ $ $ $ � � �� �� � � �� ��
	� � � ��

Due to the deconsolidation of Optum E S Pty Ltd , the amounts that had been loaned to that entity whilst a controlled entity have been reclassified as ‘Other receivables’ as that entity is no longer part of the Ansearch Group. The sum total of those amounts had previously been fully provided for and the provision has also been reclassified into ‘Other receivables’.

Following a review of the recoverability of amounts loaned to controlled entities during the 2008 financial year, the Board concluded that the recoverability of these balances was not probable and have made a provision for impairment of these amounts.

Notes 11. Other Financial Assets Non-current: Share in controlled entities �� Impairment of investments	CONSOLIDATED COMPANY 2008 2007 2008 2007 $ $ $ $ � � �� �� � � � ��
	� � �� ��

The increase in the share in controlled entities relates to the direct contribution of Ansearch Limited to the acquisition of Webfirm and Searchworld being the issue of share capital and incurring the costs of acquisition. Refer to Note 21 – Business Combinations.

Following a review of the carrying of the Group’s investment in Webfirm and Searchworld, the Board concluded that the amount and probability of receipt of the cash flows expected to be generated by the Group’s investment in these businesses justified the carrying value and no impairment of the investment was made during the year.

Following a review of the carrying of the Group’s investment in other controlled entities in the year ended 30 June 2008, the Board concluded that the amount and probability of receipt of the cash flows expected to be generated by the Group’s investment in these businesses justified the net carrying value and no further change to the impairment amount was made during the year.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

		CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
		2008	2007	2008	2007
	Notes	$	$	$	$
12. Non-Current Assets – Property, plant and	equipment
Leasehold improvements – at cost		��	��	��	��
Less: Accumulated amortisation		��	��	��	��
		��	��	��	��
Plant and equipment – at cost		��	��	��	��
Less: Accumulated depreciation		��	��	��	��
		��	��	��	��
Computer equipment – at cost		��	��	�	�
Less: Accumulated depreciation		��	��	�	�
		��	��	�	�

Total carrying amount of property, plant and equipment		��	��	��	��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

12. Non-Current Assets – Property, plant and equipment (Continued)

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current financial year are set out below:

2008

CONSOLIDATED Carrying amount at 1 July 2007 Additions Disposals/write offs Depreciation/amortisation expense Carrying amount at 30 June 2008 COMPANY Carrying amount at 1 July 2007 Additions Disposals/write offs Depreciation/amortisation expense Carrying amount at 30 June 2008 2007 CONSOLIDATED Carrying amount at 1 July 2006 Additions Depreciation/amortisation expense Carrying amount at 30 June 2007 COMPANY Carrying amount at 1 July 2006 Additions Depreciation/amortisation expense Carrying amount at 30 June 2007	Leasehold Plant and Computer Improvements Equipment Equipment Total $ $ $ $ �� �� �� �� �� �� �� �� �� �� �� �� �� �� �� ��
	�� �� �� ��
	�� �� � �� �� �� � �� �� � � �� �� �� � ��
	�� �� � ��
	Leasehold Plant and Computer Improvements Equipment Equipment Total $ $ $ $ �� �� �� �� �� �� �� �� �� �� �� ��
	�� �� �� ��
	�� �� � �� �� �� � �� �� �� � ��
	�� �� � ��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

13. Non-Current Assets – Intangible Assets

CONSOLIDATED Year ended 30 June 2008 Opening net book amount Acquisitions/restatements Impairment of assets Carrying amount at 30 June 2008 At 30 June 2008 Cost Accumulated amortisation/impairment Carrying amount at 30 June 2008 CONSOLIDATED Year ended 30 June 2007 Opening net book amount Acquisitions – business combinations Carrying amount at 30 June 2007 At 30 June 2007 Cost Accumulated amortisation/impairment Carrying amount at 30 June 2007	Intellectual Domain Property Name Goodwill Total $ $ $ $ �� �� �� �� �� � �� �� �� �� �� ��
	�� �� �� ��
	�� �� �� �� �� �� �� ��
	�� �� �� ��
	Intellectual Domain Property Name Goodwill Total $ $ $ $ � �� � �� �� � �� ��
	�� �� �� ��
	�� �� �� �� �� � � ��
	�� �� �� ��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

13. Non-Current Assets – Intangible Assets (Continued)

Goodwill

Goodwill relates to the acquisition of Webfirm and Searchworld as disclosed in Note 21 – Business Combinations .

(a) Impairment tests for goodwill

Goodwill is allocated to the Group’s cash generating units (CGUs) identified according to business segments and country of operation. All goodwill relates to the acquisition of Webfirm and Searchworld as disclosed in Note 21 – Business Combinations . It has been allocated to the web development and hosting CGU.

The recoverable amount of the CGU is determined based on value-in-use calculations. These calculations use cash flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the five-year period are extrapolated using an estimated growth rate of 7.5%. The growth rate does not exceed the expected long-term average growth rate for the business in which the CGU operates.

The recoverable amount of goodwill is estimated to be approximately $3 million, thus the carrying value of goodwill has been impaired by $2,132,469.

(b) Key assumptions used in value-in-use calculations

The following are the key assumptions in the director’s estimation of the recoverable amount of goodwill. The director’s believe the revenue growth expectations are achievable, and believe the forecast net profit after tax as a percentage of revenue are conservative estimates.

	��	��	��	��	��
��	��	��	��	��	��
��	��	��	��	��	��
! ��" ��#��$ #��$ % �$ & $ �#��	��	��	��	��	��

Discount rate of 20%
Perpetuity growth rate of 7.5% from 2013

(c) Impairment charge

The impairment charge arose from the following key events:

Consideration of the latest year-to-date results for the CGU being below initial expectations
Further deterioration of capital markets indices during September, and the impact these market conditions will have on the company’s ability to raise capital for investment in this CGU
Decision to adopt a conservative approach to profitability targets for this CGU

Intellectual property

Intellectual property relates to the various business names and domain names held as a result of the Webfirm acquisition (Note 21). During the year the directors decided to change the branding of the Webfirm business and have reassessed the fair value of this intellectual property to be $50,000. This intellectual property pertains to the Web Development & Hosting segment (refer Note 2).

Domain Name

The Anzwers domain name was purchased in February 2006. The directors have determined that the carrying value of the Anzwers domain name should be written down to $100,000 (impairment of $150,000) on the basis of current revenue and cash flow forecasts and a decision to delay further investment in this search engine platform.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

	CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
	2008	2007	2008	2007
	$	$	$	$
14. Current liabilities – Payables
Trade creditors	��	��	��	��
Employee benefits	��	��	�	��
Other creditors	��	��	��	��
GST payable	��	�	�	�
PAYG, superannuation and employment creditors	��	��	�	�
Related entities	�	��	�	��
	��	��	��	��

All current liabilities of the Group have settlement dates of less than one year. The Group has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.

	CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
	2008	2007	2008	2007
	$	$	$	$
15. Current liabilities – Other
Webfirm/Searchworld acquisition consideration balance	�	��	�	��
Webfirm/Searchworld unearned revenue	��	�	�	�
	��	��	�	��

Refer Note 21 – Business Combinations for details regarding terms and conditions regarding the Webfirm/Searchworld acquisition.

	COMPANY	COMPANY	COMPANY	COMPANY
	2008	2007	2008	2007
	Number	Number	$	$
16. Contributed equity
Ordinary Shares – Fully Paid	��	��	��	��
Ordinary Shares – Partly Paid	�	��	�	��
	��	��	��	��

There is no limit on the ordinary shares authorised for issue. Ordinary shares have no par value.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

16. Contributed equity (Continued)

Movements in Paid-Up Capital

Date	Details	Number of	Issue	Capital	Value
		shares	price	raising costs
			�		�
��' ��	( " ��) $ �$ �* �	��			��
��' $ ��	�#��& �& & ��+,�& �$ ��	��	��	��	��
��' $ ��	- % ��* �& ��#��" ��&	��	��		��
��. $ / ��	�#��& �& & ��+,�& �$ ��	�	��		��
��. $ / ��	0 ��#��#- ��& �$ ��&	��	�		�
��. $ / ��	,& & ��#& �$ ��& ��1 �) #��2 ��&	��	��		��
��' ��	3 $ �$ �* �	��			��
��' ��	,& & ��#& �$ ��& ��1 �) #��2 ��&	��	��		��
��4 ��	�#��& �& & ��+,�& �$ ��	�	��		��
��4 ��	0 ��#��#- ��& �$ ��&	��	�		�
��5 �" ��	�#��& �& & ��+,�& �$ ��	��	��		��
��5 �" ��	,& & ��#& �$ ��6 �/ �$ �$ ��" ��& ��	��	��		��
��5 �" ��	�#��& �& & ��+,�& �$ ��	��	��		��
��( * ��	- % ��* �& ��#��" ��&	��	��		��
��( * ��	- % ��* �& ��#��" ��&	��	��		��
��( * ��	�#��& �& & ��+,�& �$ ��	��	��		��
��( * ��	- % ��* �& ��#��" ��&	��	��		��
��( * ��	- % ��* �& ��#��" ��&	��	��		��
��( * ��	- % ��* �& ��#��" ��&	��	��		��
��( * ��	�#��& �& & ��+,�& �$ ��	��	��		��
��! ��	- % ��* �& ��#��" ��&	��	��		��
��	��	��		��	��

(i) Entitlements issue 6 cent shares – first instalment of 2 cents to pay to 2 cents - net of costs of capital raised. (ii) Entitlements issue 6 cent shares – second instalment of 2 cents to pay to 4 cents. (iii) Entitlements issue 6 cent shares – third instalment of 2 cents to pay to 6 cents.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

16. Contributed equity (Continued)

Options issued, exercised and lapsed during the financial year and options outstanding at the end of the year are summarised below:

Consolidated and Company 2008

Consolidated and Company 2008
Issue Type Notes Expiry Date Exercise Price $	Balance at beginning of the year (Number) Issued during the year (Number) Expired during the year (Number) Exercised during the year (Number) Balance at end of the year (Number)
Ordinary options ��7��7�� �� �� � � �� �� Ordinary options (i) ��7��7�� �� �� �� �� � �� Ordinary options (i) ��7��7�� �� �� � �� � � Ordinary options (i) ��7��7�� �� �� � �� � � Ordinary options (ii) ��7��7�� �� �� � �� � � Ordinary options (iii) ��7��7�� �� �� � �� �� � Ordinary options (iii) ��7��7�� �� �� � �� � � Ordinary options (ii) ��7��7�� �� �� � �� � � Ordinary options (ii) ��7��7�� �� �� � �� � � Ordinary options (ii) ��7��7�� �� �� � �� � � Ordinary options (ii) ��7��7�� �� �� �� �� � �� Ordinary options (ii) ��7��7�� �� �� �� � � �� Ordinary options (iv) ��7��7�� �� � �� � � �� Ordinary options (ii) ��7��7�� �� � �� �� � �� Ordinary options (ii) ��7��7�� �� � �� � � �� Ordinary options (ii) ��7��7�� �� � �� � � �� Ordinary options (ii) ��7��7�� �� � �� � � �� �� �� �� �� ��	�� � � �� �� �� �� �� � �� �� � �� � � �� � �� � � �� � �� � � �� � �� �� � �� � �� � � �� � �� � � �� � �� � � �� � �� � � �� �� �� � �� �� �� � � �� � �� � � �� � �� �� � �� � �� � � �� � �� � � �� � �� � � ��

Consolidated and Company 2008

Issue Type
Notes
Expiry
Date
Exercise
Price
$

Balance at
beginning of
the year
(Number)
Issued
during the
year
(Number)
Expired during
the year
(Number)
Exercised
during the
year
(Number)
Balance at
end of the
year
(Number)

Ordinary options
��7��7��
��
��
�
�
��
��
Ordinary options
(i)
��7��7��
��
��
��
��
�
��
Ordinary options
(i)
��7��7��
��
��
�
��
�
�
Ordinary options
(i)
��7��7��
��
��
�
��
�
�
Ordinary options
(ii)
��7��7��
��
��
�
��
�
�
Ordinary options
(iii)
��7��7��
��
��
�
��
��
�
Ordinary options
(iii)
��7��7��
��
��
�
��
�
�
Ordinary options
(ii)
��7��7��
��
��
�
��
�
�
Ordinary options
(ii)
��7��7��
��
��
�
��
�
�
Ordinary options
(ii)
��7��7��
��
��
�
��
�
�
Ordinary options
(ii)
��7��7��
��
��
��
��
�
��
Ordinary options
(ii)
��7��7��
��
��
��
�
�
��
Ordinary options
(iv)
��7��7��
��
�
��
�
�
��
Ordinary options
(ii)
��7��7��
��
�
��
��
�
��
Ordinary options
(ii)
��7��7��
��
�
��
�
�
��
Ordinary options
(ii)
��7��7��
��
�
��
�
�
��
Ordinary options
(ii)
��7��7��
��
�
��
�
�
��
��
��
��
��
��

��
�
�
��
��
��
��
��
�
��
��
�
��
�
�
��
�
��
�
�
��
�
��
�
�
��
�
��
��
�
��
�
��
�
�
��
�
��
�
�
��
�
��
�
�
��
�
��
�
�
��
��
��
�
��
��
��
�
�
��
�
��
�
�
��
�
��
��
�
��
�
��
�
�
��
�
��
�
�
��
�
��
�
�
��

(i) Options issued to directors following shareholder approval at the December AGM. Refer to Note 25 – Key Management Personnel Disclosures
(ii) Options issued to employees for services rendered. Refer to Note 25 – Key Management Personnel Disclosures

(iii) Options issued during 2007 relating to partly paid entitlement shares

(iv) Options issued to former CEO as part of termination package. Refer to Note 25 – Key Management Personnel Disclosures

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

	CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
	2008	2007	2008	2007
	$	$	$	$
17. Reserves and Retained Losses
Reserves
Share–based payments reserve	��	��	��	��
Share–based payments reserve
Opening balance	��	��	��	��
Option expense	��	��	��	��
Closing balance	��	��	��	��

The Share-based payments reserve is used to record the value of options accounted for in accordance with AASB2: Share Based Payments.

	2008	2007	2008	2007
	$	$	$	$
Retained Losses
Retained losses at the beginning of the financial year	��	��	��	��
Net loss attributable to the members of the Company	��	��	��	��
Retained losses at the end of the financial year	��	��	��	��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

18. Earnings Per Share

Earnings Per Share
	2008		2007
	��		��
Basic earnings per share
Loss from continuing operations attributable to the members of the Company	��	�	��
Profit from discontinued operations		�	�
Loss attributable to the ordinary equity holders of the Company	��	�	��
	2008		2007
	��		��
Diluted earnings per share
Loss from continuing operations attributable to the members of the Company	��	�	��
Profit from discontinued operations		�	�
Loss attributable to the ordinary equity holders of the Company	��	�	��
	2008		2007
	�		�
Reconciliation of earnings used on calculating earnings per share
Loss from continuing operations	��	��	��
Loss from continuing operations attributable to minority interest		�	�
Loss from continuing operations attributable to the members of the Company
Used on calculating basic earnings per share	��	��	��
Profit from discontinued operations		�	�
Loss from continuing operations attributable to the members of the Company
Used on calculating basic and diluted earnings per share	��	��	��
	2008		2007
	��		��
Weighted average number of shares used as the denominator
Weighted average number of shares on issue used in the calculation of basic EPS	��	�	��
	2008		2007
	��		��
Weighted average number of shares used as the denominator
Weighted average number of shares on issue used in the calculation of diluted EPS	��	�	��
Weighted average number of options that could potentially dilute basic earnings per
share in the future, but are not included in the calculation of diluted EPS because they
are anti-dilutive for the period presented.	��	�	��

(a) Basic earnings per share Loss from continuing operations attributable to the members of the Company Profit from discontinued operations Loss attributable to the ordinary equity holders of the Company

(b) Diluted earnings per share

(c) Reconciliation of earnings used on calculating earnings per share Loss from continuing operations Loss from continuing operations attributable to minority interest Loss from continuing operations attributable to the members of the Company Used on calculating basic earnings per share Profit from discontinued operations Loss from continuing operations attributable to the members of the Company Used on calculating basic and diluted earnings per share

(d) Weighted average number of shares used as the denominator

(e) Weighted average number of shares used as the denominator

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

19. Controlled Entities

Name	Country of Incorporation	Ordinary Share Consolidated Equity Interest	Ordinary Share Consolidated Equity Interest
		2008	2007
		%	%
Parent entity
Ansearch Limited	Australia
Controlled entities
Ads Alliance Pty Ltd	Australia	100	100
Ansearch.com.au Pty Ltd Ansearch Group Services Pty Ltd3	Australia Australia	100 100	100 100
Ansearch Inc	United States	100	100
Ansearch Media Pty Ltd4	Australia	100	100
Austpacific Marketing Pty Ltd*	Australia	0	100
Austpacific Property Group Pty Ltd	Australia	100	100
Austpacific Project Services Pty Ltd	Australia	100	100
Australian Golf Resort Developments Pty Ltd	Australia	50	50
Bestway Hotels Australia Pty Ltd*	Australia	0	100
Bestway Mortgage Corporation Pty Ltd*	Australia	0	100
Bestsitic Australia Pty Ltd*	Australia	0	100
Enedia Pty Ltd	Australia	100	100
Golden Beach Properties Pty Ltd* Searchworld Pty Ltd5	Australia Australia	0 100	100 100
Webfirm Pty Ltd Webfirm Search Pty Ltd6	Australia Australia	100 100	100 100
Westmark Equities Pty Ltd*	Australia	0	100
Victoria Bridge Holdings Pty Ltd	Australia	0	100
Investments in other entities
Optum E S Pty Ltd	Australia	15	15

Equity interests in all controlled entities are by way of ordinary shares

Companies were deregistered during the year

3 Formerly Ansearch Resourcing Pty Ltd

4 Formerly Soush Pty Ltd

5 Formerly Searchtown Pty Ltd

6 Formerly Searchworld Pty Ltd

Ansearch Limited and Controlled Entities ABN 70 001 287 510

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

==> picture [128 x 24] intentionally omitted <==

20. Discontinued Operations

During the year, the following dormant companies were deregistered:

Austpacific Marketing Pty Ltd; Bestway Hotels Australia Pty Ltd; Bestway Mortgage Corporation Pty Ltd; Bestsitic Australia Pty Ltd; Golden Beach Properties Pty Ltd; and Westmark Equities Pty Ltd. Victoria Bridge Holdings Pty Ltd was a 100% owned subsidiary of Westmark Equities Pty Ltd which was deregistered during the year.

These companies held no assets or liabilities as at the date of deregistration.

21. Business Combinations

Webfirm Pty Ltd and Webfirm Search Pty Ltd (formerly Searchworld Pty Ltd)

On 31 May 2007 Ansearch Limited acquired all of the assets and liabilities of Webfirm Pty Ltd and 100% ownership in Webfirm’s subsidiary Webfirm Search Pty Ltd, a premier website design and online media company operating in Perth.

The acquired business contributed revenues of $580,170 and a net profit of $308,660 to the Group for the period from 1 June 2007 to 30 June 2007, and contributed revenues of $3,590,164 and a loss of $491,357 to the Group for the period 1 July 2007 to 30 June 2008. These amounts have been calculated using the Group’s accounting policies.

The amount of revenue and profits for the combined entity as if the acquisition had occurred on 1 July 2006 has not been disclosed because it’s not practicable to obtain this information.

The purchase consideration was made up of cash and equity and payable in three tranches as follows:

Tranche 1 - Paid 31 May 2007 Cash Equity - 15,000,000 fully paid ordinary shares @ 7.6 cents per share Tranche 2 - Payable 4 July 2007 Cash Equity – 3,722,854 fully paid ordinary shares @ 9.67 cents per share Tranche 3 - Payable 31 October 2007 Cash Monthly cash earn out payments Actual based upon July 2007 to October 2007 EBIT performance Transaction Costs Total consideration	�� �� �� �� �� �� ��
	��

Tranche 1 - Paid 31 May 2007
Cash
Equity - 15,000,000 fully paid ordinary shares @ 7.6 cents per share
Tranche 2 - Payable 4 July 2007
Cash
Equity – 3,722,854 fully paid ordinary shares @ 9.67 cents per share
Tranche 3 - Payable 31 October 2007
Cash
Monthly cash earn out payments
Actual based upon July 2007 to October 2007 EBIT performance
Transaction Costs
Total consideration

��
��
��
��
��
��
��

��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

Details of net assets acquired and goodwill are as follows:

ails of net assets acquired and goodwill are as follows:
	Acquiree’s
	Carrying	Fair
	Amount	Value
	$	$	$
Purchase consideration			��
Fair value of net identifiable assets acquired
Cash and cash equivalents	��	��
Trade debtors less unearned income	��	��
Property, plant and equipment	��	��
Intellectual property	�	��
Payables	��	��
Net identifiable assets/(deficiency) acquired	��	��	��
Goodwill			��

Intellectual property consisted of domain names and customer contracts.

The directors have assessed the recoverable amount of goodwill in accordance with AASB 136 Impairment of Assets as outlined in Note 13.

22. Contingencies

On 31 December 2005, 65% of Optum E S Pty Ltd was disposed of for an amount of $800,000 due under the terms of a Sale and Purchase Agreement however, this amount was not paid and the company commenced legal action in the Supreme Court of Western Australia. A full provision has therefore been made against this amount.

Should there be a successful outcome to the legal action, the Company may recognise additional income of $800,000.

of $800,000.
	CONSOLIDATED		COMPANY
	2008	2007	2008	2007
	$	$	$	$
23. Commitments
Lease commitments
Total lease expenditure contracted for at balance date
but not capitalised in the financial statements payable:
Within 1 year	��	��	�	��
Between 1 and 5 years	��	��	�	��
	��	��	�	��

The lease commitments detailed above relate entirely to rental premises occupied by the Ansearch Group.

Capital commitments

The consolidated entity and the Company had not entered any capital expenditure contracts at reporting date that are not recognised as liabilities on the Balance Sheets.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued)

For the year ended 30 June 2008

For the year ended 30 June 2008
	CONSOLIDATED		COMPANY
	2008	2007	2008	2007
	$	$	$	$
24. Remuneration of auditors
During the year the following fees were paid/payable to
the auditor of the company:
Audit services
Audit and review of financial reports	��	��	��	��
Non-audit services*
Related Practice with auditor
Taxation compliance services	��	�	��	�

*BDO Kendalls Corporate Tax (WA) Pty Ltd continue to provide the group with non-audit taxation compliance services, however are a related practice of the former auditor of the Company (pre-December 2006). They are thus not included in the above disclosures.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

25. Key Management Personnel Disclosures

Directors

The following persons were directors of the Company during the financial year:

Mr. Andrew Barlow (Appointed 22 October 2007) (Chairman from 7 December 2007) Mr Peter Jermyn (Resigned 7 December 2007) (Chairman from 22 October 2007 to 7 December 2007) Mr Glenn Ridge (Resigned 22 October 2007) (Chairman from 18 May 2007 to 22 October 2007) Mr David Burden (Appointed 6 February 2008) Mr Adrian Giles (Appointed 19 December 2007) Mr Adrian Vanzyl (Appointed 28 April 2008) Mr Charles Ellison (Resigned 28 April 2008) Mr Dean Jones (Director from 18 May 2007 to 6 August 2007 and from 22 October 2007 to 11 April 2008) Mr Terry Grigg (Resigned 22 October 2007)

Other key management personnel

The following persons also had authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, during the financial year:

Name

Position

Mr Robert Edge * Chief Executive Officer (Resigned 1 November 2007) Company Secretary (25 May 2007 to 1 November 2007) Mr Andrew Beecher Executive Officer – Webfirm Pty Ltd Mr Josh Edis * Global Head of “Search” – Searchworld Pty Ltd Mr Steve Jones General Manager–Ansearch Media Pty Ltd (Appointed 7 April 2008) Mr Damian Element Company Secretary / CFO (Appointed 1 November 2007) Ms Jan Macpherson * Company Secretary (Resigned 22 October 2007)

Also key management personnel during the year ended 30 June 2007.

Key management personnel compensation

	CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
	2008	2007	2008	2007
	$	$	$	$
Short-term employee benefits	��	��	��	��
Post-employment benefits	��	��	��	��
Other long-term employee benefits	�	�	�	�
Termination benefits	��	�	��	�
Share based payments	��	��	��	��
Total compensation	��	��	��	��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

==> picture [128 x 24] intentionally omitted <==

25.Key Management Personnel Disclosures (Continued)

Other transactions with key management personnel

On 1 July 2006 Ansearch Limited acquired Enedia Pty Ltd from parties related to Key Management Personnel. Refer to Note 21 -Business Combinations for further details.

The aggregate amounts payable to key management personnel and related interest charges are set out below:

Amounts payable to key management personnel	CONSOLIDATED COMPANY 2008 2007 2008 2007 $ $ $ $ � �� � ��

Option holdings

The number of options over ordinary shares in the company held during the financial year by each director of Ansearch Limited and other key management personnel of the group, including their personally related parties are set out below:

2008 Name	Balance at the start of the year (Number)	Granted during the year as compensation (Number)	Exercised during the year (Number)	Other changes during the year (Number)	Balance at the end of the year (Number)	Vested and exercisable at the year end (Number)
Directors Mr A Barlow Mr D Burden Mr A Giles Mr A Vanzyl Mr C Ellison Mr D Jones Mr P Jermyn Mr G Ridge Mr T Grigg Other key management personnel of the Group Mr R Edge Ms J Macpherson Mr D Element Mr J Edis Mr A Beecher Mr S Jones	� � � � �� �� �� �� �� � �� � �� � �	�� �� � � � �� � � � �� �� � � � �	� � � � � � � � � � � � � � �	� � � � � �� �� �� �� � �� � �� � �	�� �� � � �� � � � � �� � � �� � �	�� �� � � �� � � � � �� � � �� � �
Totals	��	��	�	��	��	��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued)

For the year ended 30 June 2008

25.Key Management Personnel Disclosures (Continued)

2007 Name	Balance at the start of the year (Number)	Granted during the year as compensation (Number)	Exercised during the year (Number)	Other changes during the year (Number)	Balance at the end of the year (Number)	Vested and exercisable at the year end (Number)
Directors Mr P Jermyn Mr C Ellison Mr G Ridge Mr T Grigg Other key management personnel of the Group Mr R Edge Mr D Jones Mr J Edis Ms J Macpherson Mr D London Mr K Morris Mr E Balafas Mr T Ward	�� �� �� �� � � �� � � �� � ��	� � � � � �� �� �� �� �� �� ��	� � � � � � � � � � � �	�� � �� �� � �� � �� �� � � �	�� �� �� �� � �� �� �� �� �� �� ��	�� �� �� �� � �� �� �� �� �� �� ��
Total	��	��	�	��	��	��

No other options were granted to any other directors or key management personnel of Ansearch Limited.

No options provided as remuneration were exercised during the year.

Equity holdings and transactions

The numbers of shares in the company held during the financial year by each director of Ansearch Limited and other key management personnel of the Group, including their personally related parties, are set out below.

The Chief Operating Officer (Josh Edis) was granted 1,000,000 fully paid ordinary shares on 13 September 2007 as a contractual obligation in the company exceeding a contractual sales benchmark for the year ended 30 June 2007.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

25.Key Management Personnel Disclosures (Continued)

2008 Name	Held at 1July 2007	Received during the year on exercise of options	Received during the year as compensation	Other changes	Held at 30 June 2008
Ordinary shares Directors Mr Andrew Barlow Mr David Burden Mr Adrian Giles Mr Adrian Vanzyl Mr P Jermyn Mr C Ellison Mr G Ridge (i) Mr T Grigg Mr D Jones Other key management personnel of the Group Mr J Edis Mr A Beecher Mr S Jones Mr D Element Ms J Macpherson Mr R Edge	12,235,000 420,000 725,000 - 1,031,128 - 416,250 760,000 35,200,000 - - - - 385,000 -	- - - - - - - - - - - - - - -	- - - - - - - - - 1,000,000 - - - - -	2,918,981 1,539,491 3,743,981 - - - 1,000,000 - (35,200,000) - 150,000 - 1,459,491 (385,000) -	15,153,981 1,959,491 4,468,981 - 1,031,128 - 1,416,250 760,000 - 1,000,000 150,000 - 1,459,491 - -
Totals	51,172,378	-	1,000,000	(24,773,056)	27,399,322

(i) Mr Ridge had ceased to be a director when the 1,000,000 were acquired during the year.

2007 Name	Held at 1July 2006	Received during the year on exercise of options	Received during the year as compensation	Other changes	Held at 30 June 2007
Ordinary shares Directors Mr P Jermyn Mr C Ellison Mr G Ridge Mr T Grigg Other key management personnel of the Group Mr D Jones Mr J Edis Mr D London Mr K Morris Mr T Ward Mr E Balafas Ms J Macpherson Mr R Edge Mr A Wolf	816,902 - - 600,000 35,200,000 - 4,000,000 500,000 - - 150,000 - -	- - - - - - - - - - - - -	- - - - - - - - - - - - -	214,226 - 416,250 160,000 - - (495,000) - 250,000 63,750 235,000 - -	(Includes partly- paid entitlement shares) 1,031,128 - 416,250 760,000 35,200,000 - 3,505,000 500,000 250,000 63,750 385,000 - -
Totals	41,266,902	-	-	844,226	42,111,128

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued)

For the year ended 30 June 2008

26.Share Based Payments

Following approval by shareholders at the Annual General Meeting held on 7 December 2007, options were granted on 31 March 2008 to two directors appointed to the board of directors on 22 October 2007. The options were exercisable immediately upon grant and may be exercised at any time prior to 11 April 2011 on the condition that those directors are still working for Ansearch at that date. When exercisable, each option is convertible into one ordinary share of Ansearch Limited.

Options were granted to executive employees on 17 October 2007 for services performed (an employee share option plan which was approved by an extraordinary general meeting of the shareholders on 16 June 2006). Options granted on 17 October 2007 were exercisable for most executives on June 30 2008 on condition that those executives are still working for Ansearch at that date. When exercisable, each option is convertible into one ordinary share of Ansearch Limited.

Options granted carry no dividend or voting rights.

The options were not issued on a performance basis. All options were issued at the discretion of the Board of Directors to provide an opportunity for key management personnel and other employees to share in the success of the company.

No other options were granted to any other directors or key management personnel of Ansearch Limited.

No options provided as remuneration were exercised during the year.

Set out below are summaries of options granted to key management personnel employees of the Ansearch Group during the year in lieu of services rendered.

Consolidated and Company 2008

! �� " ��	# $ % & ' " ��	# $ � �&�� ( &��	�� �� ) *�+ � ' �� ��	! ��, , � &�- �+ � ' �� ��	# $ � �&��, , � &�- �+ � ' �� ��	. �% ��, , � &�- �+ � ' �� ��	�� ��, ) *�+ � ' �� ��	/ ��, ��, �$ � �&�� ��+ ��, ) *�+ �' �� ��
��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7��	��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7�7�� ��7�7�� ��7�7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7��	�� �� �� �� �� �� �� �� �� �� �� �� �� ��	�� �� �� �� �� �� �� �� �� � � � � �	�� � � � � � �� �� � �� �� �� �� ��	� � � � � � � � � � � � � �	�� �� �� �� �� �� � �� �� � �� � � �	�� � � � � � �� �� �� �� �� �� �� ��	�� � � � � � �� �� �� �� �� � � �
0 ) ��			��	��	�	��	��	��
1 �&- + ��, �	2 � �- ��$ � �&��% &��		��	�� �		��	��	��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued)

For the year ended 30 June 2008

26. Share Based Payments (Continued)

Consolidated and Company 2007

! �� " ��	# $ % & ' " ��	# $ � �&�� ( &��	�� �� ) *�+ � ' �� ��	! ��, , � &�- �+ � ' �� ��	# $ � �&��, , � &�- �+ � ' �� ��	. �% ��, , � &�- �+ � ' �� ��	�� ��, ) *�+ � ' �� ��	/ ��, ��, �$ � �&�� ��+ ��, ) *�+ �' �� ��
��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7��	��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7��7�� ��7�7�� ��7�7�� ��7�7��	�� �� �� �� �� �� �� �� ��	�� �� �� � � � � � �	� � � �� �� �� �� �� ��	� � � � � � � � �	� � � � � � � � �	�� �� �� �� �� �� �� �� ��	�� �� �� �� �� �� �� �� ��
0 ) ��			��	��	�	�	��	��
1 �&- + ��, �2 �	�- ��$ � �&��% &��		�� �� �			�	��	��

No options expired during the periods covered by the above tables.

The model inputs for options granted during the year ended 30 June 2008 included:

Model Input	Class #1	Class #2	Class #3	Class #4	Class #5	Class #6	Class #7	Class #8
Grant Date	17/10/07	17/10/07	31/03/08	02/04/08	02/04/08	02/04/08	02/04/08	02/04/08
Exercise Date	30/06/08	30/06/08	03/03/08	02/04/08	30/06/08	31/12/08	30/06/09	31/12/09
Expiry Date	30/06/10	30/06/10	10/04/11	30/06/09	30/06/09	31/12/09	30/06/10	31/12/10
Exercise Price	$0.15	$0.15	$0.10	$0.10	$0.15	$0.20	$0.25	$0.30
Exercise Factor	2.5	1.5	2.5	2.5	2.5	2.5	2.5	2.5
Price at Grant Date	$0.064	$0.064	$0.019	$0.015	$0.015	$0.015	$0.015	$0.015
Expected Volatility	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
Expected Dividend Yield	0%	0%	0%	0%	0%	0%	0%	0%
Risk Free Interest Rate	6.56%	6.56%	6.26%	6.26%	6.26%	6.26%	6.26%	6.26%

The volatility calculation is based upon historical share price information of the Company from the commencement of listing (17 December 1987) up to the grant date of the options.

The model inputs for options granted during the year ended 30 June 2007 included:

Model Input	Class #1	Class #2	Class #3	Class #4	Class #5	Class #6	Class #7
Grant Date	13/10/06	13/10/06	13/10/06	13/10/06	13/10/06	13/10/06	13/10/06
Exercise Date	13/10/06	13/10/06	30/06/07	30/06/07	30/06/07	30/06/07	30/06/07
Expiry Date	30/06/08	30/06/08	30/06/09	30/06/08	30/06/09	30/06/09	06/09/09
Exercise Price	$0.20	$0.15	$0.15	$0.10	$0.10	$0.10	$0.10
Exercise Factor	2.5	2.5	2.5	2.5	2.5	1.5	1.5
Price at Grant Date	$0.064	$0.064	$0.064	$0.064	$0.064	$0.064	$0.064
Expected Volatility	114.5%	114.5%	114.5%	114.5%	114.5%	114.5%	114.5%
Expected Dividend Yield	0%	0%	0%	0%	0%	0%	0%
Risk Free Interest Rate	5.78%	5.78%	5.78%	5.78%	5.78%	5.78%	5.78%

The volatility calculation is based upon historical share price information of the Company from the commencement of listing (17 December 1987) up to the grant date of the options.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

	CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
	2008	2007	2008	2007
	$	$	$	$
27. Cash Flow reconciliation
Reconciliation of Net Cash Flows from Operating
Activities to Loss for the year
Loss for the year	��	��	��	��
Depreciation and amortisation	��	��	��	��
Impairment of Intangibles	��	��	�	�
Gain on convertible note repayment	�	��	�	��
Share based payment	��	��	��	��
Issue of share to employee	��	�	��	�
Provision for impairment of receivables	��	��	��	��
Changes in assets and liabilities (net of effects of
acquisition and disposal of entities)
(Increase)/decrease in trade and other debtors	��	��	��	��
Decrease/(increase) in other financial assets	��	��	��	�
Increase/(decrease) in trade and other creditors,
employee benefits and other provisions	��	��	��	��
Net cash outflow from operating activities	��	��	��	��

Ansearch Limited and Controlled Entities ABN 70 001 287 510

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

==> picture [128 x 24] intentionally omitted <==

28. Financial Risk Management

The Group’s operations expose it to various financial risks including market, credit, liquidity and cash flow risks. Risk management programmes and policies are employed to mitigate the potential adverse effects of these exposures on the results of the Group.

Financial risk management is carried out by the Chief Financial Officer with oversight provided by the Board.

(a) Market risks

The Group’s activities expose it primarily to the financial risks of changes in foreign currency. In the current reporting period the foreign currency related exposure is not considered to be material to the entity’s overall business operation. Foreign currency exposure is monitored by the Board on a quarterly basis. The Board has considered that any specific risk mitigation action is not required at this time.

(b) Credit risk

The Group has no significant concentrations of credit risk. As disclosed in Note 8 a), ‘Impairment of receivables’, The Group has policies in place to ensure that sales of services are made to customers with appropriate credit history. Before accepting any new customers, the Group internally reviews the potential customer’s credit quality. A substantial deposit on contract in website development and hosting segment of the Group mitigates initial credit risk.

The Group and the Company hold the following financial assets and liabilities with potential credit risk exposure:

	CONSOLIDATED	CONSOLIDATED	COMPANY	COMPANY
	2008	2007	2008	2007
	$	$	$	$
Financial assets
Cash and cash equivalents	��	��	��	��
Trade and other receivables	��	��	��	��
	��	��	��	��

(c) Liquidity risk

(c) Liquidity risk
	2008	2007	2008	2007
	$	$	$	$
Financial liabilities
Trade and other payables	��	��	��	��

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close-out market positions. Due to the dynamic nature of the underlying business, the Board aims at maintaining flexibility in funding by keeping committed credit lines and sufficient cash available.

All financial liabilities are expected to be settled within 12 months of the reporting date, per the contractual terms of the obligations.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

==> picture [128 x 24] intentionally omitted <==

28. Financial Risk Management (Continued)

(d) Cash flow and fair value interest rate risk

As the Group has no significant interest-bearing assets or liabilities (except cash), the Group’s income and operating cash flows are not materially exposed to changes in market interest rates.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on exposure to interest rates on interest bearing bank balances throughout the reporting period. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the possible change in interest rates (also comparable to movement in interest rates during the reporting year).

At reporting date, if interest rates had been 100 basis points higher or lower and all other variables were held constant, the Group’s net profit would increase by $12,345 and decrease by $14,568 (2007: increase by $4,442 and decrease by $6,308). This is mainly attributable to the Group’s exposure to interest rate on its bank balances bearing variable interest rates.

Interest rate risk exposures

The Group’s exposure to interest rate risk, and the effective weighted average interest rate for each class of financial assets and financial liabilities, is set out below.

					Fixed Interest Maturing in:	Fixed Interest Maturing in:
2008		Weighted	Floating		Over 1	More		Non-
		Average	Interest	1 Year	To 5	Than 5		Interest
		Interest	Rate	Or Less	Years	Years		Bearing	Total
	Notes	Rate	$	$	$	$		$	$
CONSOLIDATED
Financial assets
Cash assets	�	��	��	��		�	�	��	��
Receivables	�8 �		�	�		�	�	��	��
Total financial			��	��		�	�	��	��
assets
Financial
liabilities
Trade and other	��		�	�		�	�	��	��
creditors
Webfirm and
Searchworld
unearned	��		�	�		�	�	��	��
revenue
Total financial			�	�		�	�	��	��
liabilities
Net financial			��	��		�	�	��	��
assets

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

28. Financial Risk Management (Continued)

				Fixed Interest Maturing in:	Fixed Interest Maturing in:	Fixed Interest Maturing in:
2007		Weighted	Floating		Over 1	More		Non-
		Average	Interest	1 Year	To 5	Than 5		Interest
		Interest	Rate	Or Less	Years	Years		Bearing	Total
	Notes	Rate	$	$	$	$		$	$
CONSOLIDATED
Financial assets
Cash assets	�	��	��	��	�	�	�	��	��
Receivables	�		�		�	�	�	��	��
Total financial assets			��	��	�	�	�	��	��
Financial liabilities
Trade and other	��		�		�	�	�	��	��
creditors
Webfirm acquisition	��		�		�	�	�	��	��
balance
Total financial liabilities			�		�	�	�	��	��
Net financial assets			��	��	�	�	�	��	��

Net fair value of financial assets and liabilities

On-balance sheet

The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities of the consolidated entity approximates their carrying value.

The net fair value of other monetary financial assets and financial liabilities is based upon market prices where a market exists or by discounting the expected future cash flows by the current interest rates for assets and liabilities with similar risk profiles.

Credit risk exposures

Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted.

The credit risk on financial assets, other than investments, of the consolidated entity which have been recognised in the Balance Sheet is the carrying amount net of any provision for doubtful debts.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [128 x 24] intentionally omitted <==

Notes to the Financial Statements (Continued) For the year ended 30 June 2008

29. Events Subsequent to Reporting Date

On 29 July 2008 the Company announced a capital raising program consisting of the issue of fully paid ordinary shares in the company at an issue price of $0.012 in three tranches as follows:

i) the issue of 72,000,000 fully paid ordinary shares to sophisticated investors and specialist institutions;
ii) the issue of approximately 34,333,334 fully paid ordinary shares to directors and senior management subject to shareholder approval; and

iii) an offer to all shareholders under a share purchase plan to be conducted in September 2008.

On 15 August 2008 the company called an extraordinary general meeting in order that shareholders be given an opportunity to approve the issue of shares and options to directors, and to ratify the various elements of the capital raising program (referred to in the paragraph above). The meeting was held on 16 September 2008 and all resolutions put to the meeting were passed.

On 27 August 2008, pursuant to the board approved 2009 staff remuneration plan, shares and options were granted to executive and non-executive employees for services performed or to be performed (an employee share option plan which was approved by an extraordinary general meeting of the shareholders on 16 June 2006), as follows:

i) 71,428 ordinary shares were issued to the majority of employees of the Group for nil consideration;
ii) 30,100,000 options were allotted to executives and managers of the Group for nil consideration. These options vest in three tranches and have vesting conditions attached

On 4 September 2008 the Company announced the launch of its new global search advertising solution – the Searchworld AdCentre, and on 11 September the Company announced its intention to expand the business development activities of its Searchworld AdCentre platform into the United States

On 8 September 2008 four 100% owned Ansearch Limited subsidiary companies effected a change of name. Refer to note 19.

30. Variance between the Appendix 4E ‘Preliminary Final Report’ and the Annual Report

Losses in the Annual Report are $2,432,469 greater than the Appendix 4E “Preliminary Final Report” due to impairment of intangible assets (including goodwill). Accordingly, net assets have decreased by the same amount.

The Directors held a meeting on 24 September 2008 and again reviewed the recoverable amounts of intangible assets and goodwill. The directors considered new information available to them, including:

the results of the August trading month,
the further deterioration of capital markets indices during September and the impact of market
conditions on the ability of Ansearch to raise capital for investment,
the decision to delay further investment in the Anzwers search engine platform, and
a decision to move some of the business formerly being transacted by Searchworld into Webfirm.

Having regard to these matters, and electing to take a conservative approach, the directors have determined that it would be prudent to impair the carrying value of goodwill and intangible assets held on the books of the company. Further details are included in Note 13.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [126 x 24] intentionally omitted <==

Directors’ Declaration

The directors declare that the financial statements and notes set out on pages 22 to 67:

(a) comply with Australian Accounting Standards the Corporations Regulations 2001 and other mandatory professional reporting requirements in Australia; and
(b) give a true and fair view of the Company’s and consolidated entity’s financial position as at 30 June 2008 and of their performance, as represented by the results of their operations and their cash flows, for the financial year ended on that date.

In the directors’ opinion:

(a) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
(b) the audited remuneration disclosures set out on pages 11 to 18 of the Directors’ Report comply with section 300A of the Corporations Act 2001 .

The directors have been given the declaration by the Chief Executive Officer and Chief Financial Officer required by section 295A of the Corporations Act 2001 .

This declaration is made in accordance with a resolution of the directors.

==> picture [145 x 40] intentionally omitted <==

Andrew Barlow Chairman Ansearch Limited

30 September 2008

==> picture [152 x 32] intentionally omitted <==

INDEPENDENT AUDITOR’S REPORT

To the members of Ansearch Limited

==> picture [172 x 137] intentionally omitted <==

Matters Relating to the Electronic Presentation of the Audited Financial Report

This auditor’s report relates to the financial report of Ansearch Limited for the year ended 30 June 2008 included on Ansearch Limited’s web site. The company’s directors are responsible for the integrity of Ansearch Limited’s web site. We have not been engaged to report on the integrity of Ansearch Limited’s web site. The auditor’s report refers only to the statements named below. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on this web site.

Report on the Financial Report

We have audited the accompanying financial report of Ansearch Limited, which comprises the balance sheets as at 30 June 2008, and the income statements, statements of changes in equity and cash flow statements for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 1(b), the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that compliance with the Australian equivalents to International Financial Reporting Standards ensures that the financial report, comprising the financial statements and notes, complies with International Financial Reporting Standards.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

BDO Kendalls is a national association of separate partnerships and entities. Liability limited by a scheme approved under Professional Standards Legislation.

==> picture [152 x 32] intentionally omitted <==

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001 .

Auditor’s Opinion

(a) the financial report of Ansearch Limited is in accordance with the Corporations Act 2001 , including:
(i) giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2008 and of their performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001 ; and
(b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1(b)

Material Uncertainty Regarding Continuation as a Going Concern

Without qualifying our opinion, we draw attention to Note 1(a) in the financial report which indicates that the consolidated entity incurred a net loss of $6,720,666 during the year ended 30 June 2008 and had net cash outflows from operating activities of $2,552,714. These conditions along with other matters as set forth in Note 1(a), indicate the existence of a material uncertainty which may cast significant doubt about the consolidated entity’s ability to continue as a going concern. The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of the liabilities that might be necessary if the consolidated entity does not continue as a going concern.

Report on the Remuneration Report

We have audited the Remuneration Report included in pages 11 to 18 of the directors’ report for the year ended 30 June 2008. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Auditor’s Opinion

In our opinion, the Remuneration Report of Ansearch Limited for the year ended 30 June 2008, complies with section 300A of the Corporations Act 2001.

==> picture [96 x 28] intentionally omitted <==

BDO Kendalls Audit & Assurance (NSW-VIC) Pty Ltd

Chartered Accountants

==> picture [97 x 34] intentionally omitted <==

Michael Climpson

Director

Melbourne 30 September 2008

BDO Kendalls is a national association of separate partnerships and entities. Liability limited by a scheme approved under Professional Standards Legislation.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [126 x 24] intentionally omitted <==

Corporate Governance Statement (Continued)

CORPORATE GOVERNANCE STATEMENT

The directors of Ansearch Limited have a commitment to maintain long term shareholder value, and recognise the benefits of good corporate governance in achieving this aim.

Having regard to the size and resources available to the company, the company endeavours at all times to comply with the Australian Stock Exchange Corporate Governance Principles and Recommendations (‘ASX Principles’). Unless otherwise stated, the company complies with the ASX recommendations.

Principle 1: Lay solid foundations for management and oversight

The company has separate functions for board and senior management. The company has yet to disclose this publicly. The board meet regularly to perform their prescribed functions. The company has a process for evaluating the performance of senior executives. The company has yet to disclose this publicly. The performance of the chief executive officer and senior executives of the company has taken place prior to the date of this report, in accordance with the established process.

Principle 2: Structure the board to add value

The majority of the board are independent directors. Independent directors include Mr Andrew Barlow, Mr Adrian Giles and Mr Adrian Vanzyl. The only non-independent director in Mr David Burden who holds the office of chief executive officer. The chair of the board, Mr Andrew Barlow, is an independent director. The role of chair and chief executive officer are held by different individuals. The company has a board consisting of four directors, and the directors collectively perform the functions of a nomination committee as the directors do not consider that any increase in efficiency or effectiveness would be achieved through the formation of a nomination committee. The directors have access to professional advisors who provide advice and assistance as requested by the directors. The company is yet to implement a process for evaluating the performance of the board, its committees or individual directors.

Principle 3: Promote ethical and responsible decision making

The company has a code of conduct for directors and a code of conduct for employees. The company actively complies with this policy. The company has a policy concerning trading in company securities by directors and employees. The company actively complies with this policy. The board allows individual directors to seek independent professional advice to enable a director to carry out his duties after discussion with the chairman in the first instance. Any necessary advice is obtained at the company’s expense and advice obtained is made available to all directors.

Principle 4: Safeguard integrity in financial reporting

The directors collectively perform the functions of an audit committee as the directors do not consider that any increase in efficiency or effectiveness would be achieved through the formation of an audit committee. The directors have access to professional advisors who provide advice and assistance as requested by the directors. The board while collectively performing the functions of an audit committee consists of a majority of independent directors and has at least three members. Compliance with accounting and financial reporting standards and procedures are subject to board review and review by the external auditors. The nonexecutive directors have direct access to the external auditor and are permitted to make such enquiries of the auditor as they feel are necessary. The external auditor is invited to attend the annual general meeting and make himself or herself available to answer any questions pertaining to the conduct of the audit, the content of the audit report or the financial affairs of Ansearch.

Principle 5: Make timely and balanced disclosure

The company has a policy of complying with ASX disclosure requirements. The directors and senior management have received education and training on the subject of ASX disclosure requirements. The company actively complies with this policy.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [126 x 24] intentionally omitted <==

Corporate Governance Statement (Continued)

Principle 6: Respect the rights of shareholders

The company has a policy for promoting effective communication with shareholders. The company actively complies with this policy, by way of ASX announcements, letters posted to shareholders, and shareholder presentations.

Principle 7: Recognise and manage risk

Business risks are identified by senior management and bought to the attention of the board if deemed material. The company does not have a formal business risk management plan. In accordance with section 295A of the Corporation Act, the board has received assurance from both the CEO and CFO that a system of risk management and internal control appropriate to the size and nature of the organisation is in place and is operating effectively in all material respects.

Principle 8: Remunerate fairly and responsibly

The directors collectively perform the functions of a remuneration committee as the directors do not consider that any increase in efficiency or effectiveness would be achieved through the formation of a remuneration committee. The directors have access to professional advisors who provide advice and assistance as requested by the directors. The non-executive directors and the executive directors and senior management of the company have clearly distinguishable remuneration structures which are set out in documented service agreements. Full remuneration details for directors and key executives are provided in the director’s report and the notes to the annual financial statements in this annual report.

Ansearch Limited and Controlled Entities ABN 70 001 287 510

==> picture [126 x 24] intentionally omitted <==

Corporate Directory

Directors

Auditors

Mr Andrew Barlow – Chairman/Non-Executive Director BDO Kendalls Audit & Assurance (NSW-VIC) Pty Ltd Mr David Burden – CEO/Managing Director The Rialto Mr Adrian Giles – Non-Executive Director Level 30, 525 Collins Street Mr Adrian Vanzyl – Non-Executive Director MELBOURNE VIC 3000

Chief Executive Officer

Mr David Burden

Company Secretary Mr Damian Element

Solicitors

Minter Ellison Level 23,525 Collins Street Melbourne VIC 3000

Head Office

Ansearch Limited Level 3, 95 Coventry Street South Melbourne Vic 3205 Australia Phone: + 61 3 8695 9199 Fax: + 61 3 9696 0700 Toll free 1300 852 722

Bankers

National Australia Bank Limited 424 St Kilda Road St Kilda VIC 3004

Registered Office

Ansearch Limited Level 3, 95 Coventry Street South Melbourne Vic 3205 Australia Phone: + 61 3 8695 9199 Fax: + 61 3 9696 0700 Toll free 1300 852 722

Share Register

Computershare Registry Services Pty Ltd Yarra Falls 452 Johnston Street Abbotsford, VIC 3001

Home Stock Exchange

Australian Stock Exchange Limited Level 45, South Tower Rialto, 525 Collins St Melbourne, VIC 3000 ASX Code: ANH

AI assistant

ADSLOT LTD. — Annual Report 2008

64306_rns_2008-09-29_91eb9958-ec97-4949-adc1-085eb4bb7dff.pdf

annual report 2008

ANSEARCH LIMITED

ANNUAL REPORT

30 June 2008

CONTENTS

CHAIRMAN’S REPORT

Dear Ansearch Shareholders,

CEO’s REPORT

CEO’s REPORT (Continued)

Directors’ Report

����������

�������������������������

��������������������������

���������

Directors’ Report (Continued)

��������������������� ! ��

����������������������������" # ��������$�������

����������% ����������� �� ��������

Directors’ Report (Continued)

����������& ��' ( ������� ) ���

���������

Company Secretary

�������" �������

������( �* �������( �����������+ ���������$�������

$�����������������

����������

Directors’ Report (Continued)

Review of Operations

�������������� �!�������# �A ��������������������%*

, �- �����

* ���������� �!�������# �A ���������%��

Principal Activities

Significant changes in the state of affairs

* ������������

�������������������

Directors’ Report (Continued)

��. �����������

$��������������������������

���������/ ����������������������

��������* �- ��. ���������)[���] 0 ����1) ) 2�

3 �4 ��( ��������������������������# ����������������

Directors’ Report (Continued)

" �������������������������

���������5����������

�" �7 6" ��8 �$6��" / $�8 �����������

�9�/ �������������������������������������������������������������������

����������������������������������������

���������

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 �������������

�9��������������������������

���������

" # ��������$��������

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 �������������

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 �������������

�9�������������������������������������

�9�* �������������������

�������, ������������������������������������������

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 �������������

+ ���������, �������

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 �������������

�9�* ����:- �������������������

$�������:�1) ) ?�

Directors’ Report (Continued) �" �7 6" ��8 �$6��" / $�8 �������������

�9�* ����:- ������������������������������

Directors’ Report (Continued)

�" �7 6" ��8 �$6��" / $�8 �������������

�9�* ����:- ������������������������������

" 9�������������������������

Directors’ Report (Continued)

$8 @ " ���6+ $���8 �$6�

* �������������������

���������������������������������$��������

ADSLOT LTD. Annual Report 2008

��

��

��

��

�� ! ��

��" # ��$��

��% ��

��& ��' ( �� ) ��

��

��" ��

��( �* ��( ��+ ��$��

$��

��

�� !��# �A ��%*

, �- ��

* �� !��# �A ��%��

* ��

��

��. ��

$��

��/ ��

��* �- ��. ��)[��] 0 ��1) ) 2�

3 �4 ��( ��# ��

" ��

��5��

�" �7 6" ��8 �$6��" / $�8 ��

�9�/ ��

��

��

�" �7 6" ��8 �$6��" / $�8 ��

�9��

��

" # ��$��

�" �7 6" ��8 �$6��" / $�8 ��

�" �7 6" ��8 �$6��" / $�8 ��

�9��

�9�* ��

��, ��

�" �7 6" ��8 �$6��" / $�8 ��

+ ��, ��

�" �7 6" ��8 �$6��" / $�8 ��

�9�* ��:- ��

$��:�1) ) ?�

Directors’ Report (Continued) �" �7 6" ��8 �$6��" / $�8 ��

�9�* ��:- ��

�" �7 6" ��8 �$6��" / $�8 ��

�9�* ��:- ��

" 9��

$8 @ " ��6+ $��8 �$6�

* ��

��$��

��5��

/ ��- ��( �

��0 ��1 ��& ��

6��* ��

��