COMPLII FINTECH SOLUTIONS LTD — Capital/Financing Update 2003

Jul 2, 2003

3 July 2003

FOR IMMEDIATE RELAESE

Trading Update

In our half year announcement, which was released to the market on 16 April 2003, we stated that Gowings Retail Limited was experiencing challenging trading conditions and that unless there was a significant turnaround in the general retail environment and a very cold winter our financial performance would be significantly lower than previously advised.

Two months have passed since our last announcement, the trading conditions we are experiencing have not improved, in fact, excepting the last few days, the weather has been unseasonally mild and the downturn in inbound tourism continues to affect our city based stores. It is now certain that the Group will record a loss for the year, the extent of that loss will depend on the performance of the stores in the last 5 weeks of the year, which is our second most important sales period, after Christmas. The Company's best estimate is that the trading loss will be between \$0.5 - \$1.0 million.

The initiatives we implemented following the strategic review earlier in the year, are beginning to deliver results. However, at current sales levels, the business is not trading profitably. We cannot assume that Sydney CBD retail trading conditions will improve in the near future, so it is vital that the business cuts its cloth accordingly. Every area of the business is being put under the microscope. In essence we need to lift maintainable sales by \$2 million per annum, reduce inventory by \$1-2 million and reduce our costs by \$1 million per annum.

Turning the business around is being given the highest priority and the Board and Management will not rest until the task is completed.

For further information please contact:

Peter Sillick Managing Director Chris Charleson CFO and Company Secretary