COG FINANCIAL SERVICES LIMITED — Net Asset Value 2012

Apr 12, 2012

Armidale Investment Corporation Ltd ABN: 58 100 854 788 Level 11, 139 Macquarie Street Sydney NSW 2000 Tel: 02 8014 1188 Fax: 02 8084 9918

ASX Company Announcements

13 April 2012

The Manager Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

Net Tangible Asset Value as at 31 March 2012 on a

Consolidated and Company Basis

In its recently released half year financial statements, Armidale Investment Corporation Limited (AIK) reported that it is required under the Accounting Standards to consolidate the financial statements of HAL Data Services Pty Limited (HDS) into its financial and management accounts from 31 December 2011, due to the ability of AIK to now exercise its call option over HDS.

As a result of this, AIK will report its Net Tangible Asset (NTA) Value on both a Consolidated and Company level. Providing the Company NTA will allow comparability to the NTA figures that, prior to the requirement to consolidate HDS, have been reported.

The unaudited NTA value per share (after all taxes, fees and expenses) as at 31 March 2012 was:

	Consolidated	Company
Net Assets	$21,025,689	$16,268,108
Intangible Assets	$10,017,096	$ 0
NTA	$11,008,593	$16,268,108
NTA per share	6.81 cents	10.06 cents
Intangible Assets comprise:
Intangibles (Software & Residual rights)	$ 7,413,800
Goodwill	$ 2,603,296
Intangible Assets	$10,017,096

Refer to Consolidated NTA below for an explanation of the intangible assets

Company NTA

The Company NTA reflects the valuation of AIK’s interests in HDS as announced to the ASX on 24 June 2011 of $13,612,000, being a mid-point of the valuation ranges and adjusted for the receipt of $3.7 million in repayments from HDS as detailed below:

• (i) two repayments of $1.5m each from HDS as announced on 5 August 2011 and 20 December 2011; and

• (ii) a repayment of $0.7m from HDS as announced on 7 February 2012.

For clarity, the repayments noted above have no effect on the Company NTA.

Consolidated NTA

The Consolidated NTA includes consolidation of HDS, which includes intangible assets. An intangible asset is an identifiable non-monetary asset without physical substance that has, identifiability, control over a resource and existence of future economic benefits.

The intangible assets arising from the consolidation of HDS include:

 Software

Costs incurred in developing products or systems and costs incurred in acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software and systems. Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees' time spent on the project. Amortisation is calculated on a straight-line basis over periods generally ranging from 2 to 5 years.

 Residual Rights

Residual rights form a key part of a leasing business operation. These are the rights to any inertia lease income that flows through to HDS following the end of a lease term. The fair value of residual rights is present value of the expected future inertia lease income and expected sale proceeds on the sale of the leased asset. At the end of the lease term the residual right (intangible asset) is transferred to property, plant and equipment to reflect the ownership of the physical asset by the HDS.

For further information please contact:

Gabriel Radzyminski Chairman 02 8014 1188 / 0467 483 005

David Franks Company Secretary 02 9299 9690

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