CPT GLOBAL LIMITED — Annual Report 2004

Aug 29, 2004

Company Announcement CPT Global Limited - 2004 Financial Results Solid Results and Improving Market Conditions

• Revenue \$28.8 million. $\bullet$
• 15% increase in Net Profit before Tax and Amortisation to \$3.2 million.
• 17% increase in Net Profit before Tax to \$2.7 million.
• 3.0 cents fully franked final dividend payable 24^th September 2004.
• Growing reputation and recognition of Management of IT services.
• Success in developing new signature clients in European and US markets.
• A net profit returned from USA operations in their first year, $\bullet$
• Improved general market sentiment and attitude to IT spending. $\bullet$

The year ended 30 June 2004 for CPT Global has been one in which it has strengthened its market position in Australia and committed substantial energy to the development of its international operations. While CPT Global's financial results were broadly in line with those achieved in the previous year they do not fully reflect the advances made to its operations. This was due in part to the need to respond to organisational changes undertaken by a small number of clients who restructured their IT purchasing arrangements which resulted in some short-term negative impact. CPT Global finished the year in a strong financial and operating position and believes it is well positioned to deliver revenue and profit growth in the coming year.

CPT Global has continued its focus on the development and successful delivery of outcome based services to its clients and this effort is beginning to build momentum in all regions. Internationally, CPT Global has mainly concentrated on mainframe cost reduction services and is now in a good position to leverage these client relationships into other core CPT Global services and technologies.

CPT Global's revenue for the year ended 30 June 2004 was \$28.8 million, in line with the previous year's result of \$28.9 million. The challenging market conditions of 2002 and 2003 continued with clients remaining focused on reducing IT expenditure and a guaranteed return-on-investment from IT projects. On a positive note, general market conditions and confidence continues to improve and CPT Global has made positive inroads into its targeted international markets, and is well placed in these regions to capitalise on these efforts during the coming year. CPT Global has also made significant ground in developing its Management of IT Consulting Services and is becoming accepted as an industry leader in assisting clients through the process of selective sourcing and IT sourcing governance.

CPT Global's net profit before tax for the year ended 30 June 2004 was \$2.7 million, an increase of 17% on the prior vear. Net orofit before tax, pre amortisation was \$3.2 million, an increase of 15% on the prior year. CPT Global's net profit after tax for the year ended 30 June 2004 was \$1.6 million. All costs including those associated with the expansion of overseas operations as well as new product development were expensed.

A final dividend of 3.0 cents per share (fully franked) has been declared, which is payable on 24^th September 2004, with a record date of 8^th September 2004. Total dividend declared and payable for the year ended 30 June 2004 was 5.0 cents per share (fully franked). Earnings per share amounted to 4.7 cents per share whilst earnings per share (pre amortisation) amounted to 6.1 cents per share.

Notable achievements in CPT Global's operations (including recent developments) include;

• Continued maintenance of CPT Global's client focus, which has enabled it to rapidly respond to clients' changing requirements and priorities;
• Expansion of service offerings in response to Government Sector opportunities, assisting IT organisations in becoming more productive and better aligned with the business;
• Retention of all major clients whilst securing additional blue chip private sector and Government clients in all regions:
• Gaining selection onto a number of local and overseas supplier panels that will spring board CPT Global's growth and long term future in those sectors;
• The growing reputation and recognition of Management of IT services and the number of Tier 1 clients that have engaged CPT Global to assist in their business critical strategic planning and selective sourcing operations:
• Maintaining its strong balance sheet position with net tangible assets at 30 June 2004 amounting to \$6.4 million (\$5.8 million at 30 June 2003); and

Success in developing several signature clients in the targeted international regions. This strategy has placed CPT Global in a position of strength to further develop an already impressive client base in each international location and capitalise on the financial investment CPT Global has made in these regions over the last few years.

Locally:

• Strengthening the management team with the appointment of new Melbourne and Sydney Region managers; and
• Australian Government Endorsed Supplier panel membership renewed until 2007.

Internationally:

• An increase in the number of blue chip clients in the international regions;
• Continued expansion and growth in UK, Ireland, USA, Swiss, Nordic and Germanic regions;
• A net profit returned from the USA operation in its first year of operation; and
• Delivery of the first Management of IT consulting and Mid-Range tuning engagements to overseas clients.

During the last financial year, CPT Global celebrated its eleventh year of operations and was pleased to be able to recognise the first group of consultants reaching their ten year anniversary with the company. This fact highlights the strong working retationship CPT Global enjoys with its staff and the strong culture that is at the heart of Company's corporate values and team performance. The CPT Board would like to formally recognise and thank all of its management and staff for their dedication and commitment to the company over the years and is confident of being able to maintain and enhance that relationship going forward.

Outlook

CPT Global continues to observe improvements in the general market sentiment and attitude to IT spending in each of its global markets. CPT Global is encouraged by ongoing changes occurring within the IT market and the opportunities these changes present. More and more clients are beginning a process of establishing multi-sourcing relationships with their trusted suppliers (moving away from large, single sourcing relationships) and this is presenting CPT Global with opportunities to compete directly for work within its core service lines. Many clients in the market are also facing the significant challenge to perform a company wide technology refresh of their IT operations (Y2K is now 5 years past). Arising from CPT Global's growing reputation in the provision of 'management of IT' consulting services, its core technical consulting services as well as its independence, it is well placed to be selected to assist clients in this work.

While CPT Global's strategy continues to focus within its main core service lines, it will also continue to develop and expand these service offerings to meet the challenges of its clients.

After a number of years of developing and cultivating business in Europe and the United Kingdom, CPT Global expects to see growth in revenue and improved profitability over the coming financial year from these regions. While progress in the overseas markets has been slower and more challenging than expected, with some assignments being deferred until later in the year, a stronger forward load and consistency of work now exists and the outlook for these regions is positive.

Notwithstanding this stronger outlook, CPT Global's performance is exposed to downturns in business confidence as well as various risks inherent in its international expansion plans. Competition between IT services companies continues to be strong and clients remain conservative in the approach to large and or, long term IT spending programs.

CPT Global is committed to maintaining the disciplines which have underpinned its improved performance during FY2004 throughout the coming year. The Company is also committed to the generation of increasing financial returns from the substantial investment it has made in the development of international markets and new products.

For further information please contact:

Mr Gerry Tuddenham, Executive Chairman or Mr Peter Corrigan, Managing Director, Telephone +61 3 9690 3911

For company profile and information refer to: www.CPTglobal.com