DATA#3 LIMITED — Capital/Financing Update 2006

Jun 27, 2006

Data^#3 confirms expectation of record full year result and announces on-market share buy-back

Adding Value

• Total revenue for FY2006 expected to exceed \$230M
• EBIT of approximately \$7.6M forecast for FY2006, up 38%
• Another record full-year result for the company $\bullet$
• Intention for on-market share buy-back of up to 10% of ordinary shares $\bullet$

BRISBANE, Wednesday 28^th June 2006. Data^#3 Limited (ASX: DTL), an information and communication technology solutions company, today announced that it expects its second half performance in the 2006 financial year to be stronger than the first half, and ahead of advice provided at the half year.

Total revenue in excess of \$230M and EBIT of approximately \$7.6M are predicted for the year ended 30 June 2006, subject to final June performance and year-end audit, and constitutes another record full year result for the company

Total revenues for the first half of 2006 were \$112.8M, and EBIT was \$3.4M.

Managing Director John Grant, said the second half performance had exceeded expectations, with EBIT increasing by approximately 38% over the previous year.

"In a market which remains strong but competitive, this result is testimony to the investments we have made in developing market-leading expertise, the strong relationships we have maintained with our customers and suppliers, and the commitment of our staff," Mr Grant saíd.

Intention to conduct on-market share buy-back

The Board also announced its intention to conduct an on-market buy-back of up to 10% of the company's ordinary shares.

The on-market buy-back is expected to commence once the year-end reports have been finalised and dividend declared, and will continue for a 12 month period. All shares purchased under the on-market buy-back will be cancelled.

"Our sustained growth in earnings since 2001 has substantially strengthened our financial position. We have sought professional advice on various initiatives to better utilise this strength and consider an on-market buy-back to be the best mechanism to deliver improved shareholder return on a sustainable basis and to reduce volatility in the company's share price," said Chairman, Richard Anderson. "We also intend to maintain our established dividend payment practice."

Further details of the on-market buy-back will be confirmed over the coming weeks.

In conjunction with this initiative, the Board announced that the Data*3 Dividend Reinvestment Plan would be suspended from 1^st September 2006 until further notice from the Board.

About Data#3

Since listing in 1997, Data#3 has evolved from a Queensland oriented Information and Communication Technology (ICT) Solutions Company to one of national significance. In its first vear of listing. Data*3 revenues were \$69 million and staff numbered 250. Last year revenues were \$197 million and over 520 staff served customers from offices in Brisbane, Sydney, Melbourne, Canberra, Townsville, Rockhampton, Gladstone and New Calendonia.

As an ICT Solutions Company, Data^#3 seeks to deliver exceptional value to its customers by applying expertise in:

• Software that enhances productivity and information management.
• The design, implementation, management and support of reliable ICT infrastructure,
• Cost effective procurement of ICT hardware and software, and
• Sourcing people with the right ICT skills.

Data*3's customers cover a wide range of industries including banking and finance, mining, tourism and leisure, legal, healthcare, manufacturing, distribution, government and utilities and are located throughout Australia and Asia Pacific.

For more information visit www.data3.com.au.

ENDS

Media Contact - for further information please contact:

John Grant Managing Director Data^#3 Limited 1300 23 28 23 $Te_l$ : Mob: 0411 429 930

Brem Hill Chief Financial Officer Data*3 Limited 1300 23 28 23 $Te₁$ : Mob: 0411 887 182