ENERGY TECHNOLOGIES LIMITED — Interim / Quarterly Report 2009

Feb 26, 2009

DULHUNTY POWER LIMITED

ABN 38 002 679 469

Half –Year Financial Report

for the half-year ended 31 December 2008

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Corporate Information

ABN 38 002 679 469

Directors

Martin H. Thomas (Chairman) Anthony J. Wingrove (Managing Director) Alfred J. Chown (Non-Executive Director) Richard K Llewellyn (Non-Executive Director) Philip W. Dulhunty (Non-Executive Director)

Company Secretary

Gregory R. Knoke

Registered Office

Building 2, Ground Floor, 35-41 Waterloo Road MACQUARIE PARK NSW 2113

Bankers

Australia and New Zealand Banking Group Limited National Australia Bank Limited 20 Martin Place NAB House, 255 George Street SYDNEY NSW 2000 SYDNEY NSW 2000

Share Register

Computershare Investor Services Pty Ltd Level 3, 60 Carrington Street Sydney NSW 2000 Telephone:- (02) 8234 5000 Facsimile:- (02) 8234 8150

Auditors

Gould Ralph Assurance Chartered Accountants Level 42, Suncorp Place 259 George Street SYDNEY NSW 2000

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Dulhunty Power Limited – Half-Year Report

Contents

Chairmans Report.................................................................................................................. 4 Directors Report..................................................................................................................... 5 Lead Auditor’s Independence Declaration............................................................................. 7 Condensed Income Statement .............................................................................................. 8 Condensed Balance Sheet.................................................................................................... 9 Condensed Statement Of Changes In Equity...................................................................... 10 Condensed Cash Flow Statement....................................................................................... 11 Notes To The Half –Year Financial Statements .................................................................. 12 Directors Declaration ........................................................................................................... 15 Independent Review Report to the Members of Dulhunty Power Limited........................... 16

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Dulhunty Power Limited – Half-Year Report

Chairman’s Report

I am disappointed to have to report half year results for Dulhunty Power Limited (DUL) that are below the expectations confidently reported at end of Financial Year 2008. Shareholders will rightly ask why this is so.

Firstly, the operating results for our major operating subsidiary, Dulhunty Engineering Limited (DEL), came in below expectations, especially in respect of sales in the Australian market in the last quarter to December 2008, arising from worldwide loss of market confidence. Additionally DEL suffered to some extent from currency losses and higher than expected material costs due to adverse exchange rate movements that could not immediately be passed on. All of these issues have been addressed vigorously by the now strengthened DEL management team. Australian sales, while still slow, are returning to budget while encouraging new orders overseas have been recorded and are reported separately. Currency movement risk management is in hand and operating expenses have been cut wherever possible without loss of product quality or customer service expectations. Prospects for continuing turnover growth remain strong, especially in China, New Zealand and the newly acquired USA subsidiary. Overseas orders in excess of AUD 5 million have been won this quarter, the largest order intake ever recorded by the company. Moreover DEL has declared a dividend.

Secondly, the sale of DUL’s non-core asset eChoice Pty Ltd resulted in a one-off write down but with no impact on growth.

Thirdly, and of concern to directors, the current capital raising market is proving exceptionally difficult. The reasons are well aired in the financial press and further comment here is superfluous beyond confirming that the global recession has hit not only lending banks and financial institutions but also Dulhunty Power. Suffice to say that the capital raising challenges arising are constraining the planned development of the advanced (and very importantly low carbon footprint and fire resistant) composite power poles for which DUL has acquired the manufacturing license. Nevertheless various avenues of financing are being very actively pursued with some still promising. Directors are confident that the technology is sufficiently attractive to distribution utilities to underpin the necessary capital raising. Other investment opportunities, for which due diligence is largely complete, also await healthier capital markets.

I have said before and say again that I continue to have every confidence in the Board of DUL and the management and staff of the company and its subsidiaries. Despite the extremely challenging financial climate we have committed people, world leading products, strong sales pipeline and quality customers around the world.

Although it will take time I look forward to the future with confidence.

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Martin Thomas AM Chairman Sydney 27 February 2009

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Dulhunty Power Limited – Half-Year Report

Directors Report

Your Directors submit their report for the half year ended 31 December 2008

DIRECTORS

The names and details of the Company's Directors in office during the half-year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.

Martin H. Thomas AM (Chairman) Appointed 13[th] October 2005. Anthony J. Wingrove (Managing Director) Appointed on 16[th] of April 2007. Alfred J. Chown (Non-executive director) Appointed 4th July 1997. Philip W. Dulhunty OAM (Non-Executive Director) Appointed 31[st] March 2003. Richard K. Llewellyn (Non-Executive Director) Appointed 20 September 2005.

Brian C. Mathiesen (Alternate Director to Alfred J. Chown) Appointed 1[st] December 2003, resigned on 14[th] of August 2008 Peter W. Dulhunty (Alternate Director to Philip Dulhunty) Appointed 1[st] March 2004, resigned 14[th] of August 2008

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal activities during the half-year of entities within the economic entity were:

• the manufacture and sale of electricity transmission and distribution products and services, anchor systems and foundry products.

• development of energy generation technology

REVIEW AND RESULTS OF OPERATIONS

Sales of $8,201,913 resulted from slowing market conditions in Australia, offset by solid results in China and the addition of the new subsidiary in the USA. This overall result represented a fall of 10% compared with the corresponding period last year.

Profitability of the DEL operating entity was impacted by these lower sales and also by large exchange fluctuations which resulted in booked realised and unrealised foreign exchange losses of $300,719. Rapid increases in raw materials prices in the first quarter were not able to be recovered immediately and margins were adversely affected, although this situation improved as key metal prices recovered towards the end of calendar year 2008. The resulting EBIT of the operating entity was a loss after tax of $213,342 for the period ended 31 December 2008 compared with a profit after tax of $484,351 for the period ended 31 December 2007.

E Choice (“eChoice”), a legacy investment of the company, was the subject of a takeover and, as a minor shareholder, DUL accepted the offer which consisted of shares in First Folio Ltd, an ASX listed entity, and deferred consideration. The acquiring entity expects to generate a trailing cash flow for former shareholders of eChoice, based on a payment made for each qualifying transaction processed through the eChoice platform over a prescribed term. However, your directors consider no material further return is likely for the company in the short term and resolved to value the investment solely at the market value of the new shares. This resulted in a one off, non cash write-down of $187,641.

Activities by the listed entity included preparation for production of the composite power poles, including establishment of material supply relationships and further testing of various properties, in particular carbon footprint results, fire resistance and enhanced mechanical properties.

Overall, Dulhunty Power Limited has reported a consolidated loss after tax of $1,108,931 for the half year to 31 December, 2008 (down from a profit of $154,020: December 2007) and a loss after minorities of $837,896 compared with a profit of $18,686 for the previous 31 December 2007 period.

Corrective action to reduce expenses within the operating entity has already shown good results and new contracts achieved by International operations, particularly in Malaysia, Thailand, USA and Russia, together with stronger orders locally, are set to produce improved results for the second half.

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Dulhunty Power Limited – Half-Year Report

Directors Report (cont)

AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor’s independence declaration under Section 307C of the Corporations Act 2001 is set out on page 7 and forms part of the Director’s Report for the half-year ended 31 December 2008.

Signed in accordance with a resolution of the Directors.

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Anthony J. Wingrove Managing Director Sydney, 27 February 2009

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27 February 2009

The Board of Directors Dulhunty Power Limited Building 2, 35-41 Waterloo Road MACQUARIE PARK NSW 2113

Dear Members of the Board

LEAD AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

In relation to our review of the financial report of Dulhunty Power Limited for the half year ended 31 December 2008, and in accordance with the provisions of the Corporations Act 2001.

We declare that, to the best of our knowledge and belief, there have been:

• No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to this review;

• No contraventions of the Code of Professional Conduct of the Institute of Chartered Accountants in Australia in relation to this review.

Yours faithfully GOULD RALPH ASSURANCE

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GREGORY C RALPH M.Com., F.C.A. Partner

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Dulhunty Power Limited – Half-Year Report

Condensed Income Statement HALF YEAR ENDED 31 December 2008

ECONOMIC ENTITY

Continuing operations Sales revenue 3 Other revenues 3 Total revenue from continuing operations Cost of Sales Marketing expenses Occupancy expenses Administration expenses Other expenses 3 (LOSS)/PROFIT BEFORE FINANCE COSTS, INCOME TAX Finance costs (LOSS)/PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE PROFIT FROM CONTINUING OPERATIONS LOSS/(PROFIT) ATTRIBUTABLE TO MINORITY EQUITY INTEREST (LOSS)/PROFIT ATTRIBUTABLE TO MEMBERS OF DULHUNTY POWER LIMITED Basic earnings per ordinary share (cents) Diluted earnings per ordinary share (cents)	31 DECEMBER 31 DECEMBER 2008 2007 $ $ 8,201,913 9,124,608 17,952 312,592
	8,219,865 9,437,200 (5,027,205) (5,880,473) (89,982) (102,767) (274,025) (264,707) (3,188,576) (2,198,379) (437,627) (691,447)
	(797,550) 299,427 (135,760) (98,602)
	(933,310) 200,825 (175,621) (46,805)
	(1,108,931) 154,020 271,035 (135,334)
	(837,896) 18,686
	(0.65) 0.02 (0.65) 0.02

The income statement should be read in conjunction with the accompanying notes.

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Dulhunty Power Limited – Half-Year Report

Condensed Balance Sheet as at 31 December 2008

ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other current assets TOTAL CURRENT ASSETS NON CURRENT ASSETS Financial assets Property, plant & equipment Intangible assets Deferred tax asset TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Financial liabilities Current tax liabilities Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Other long-term Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Parent equity interest Issued capital Reserves Accumulated losses Dulhunty Power Limited equity interest Minority equity interest TOTAL EQUITY	ECONOMIC ENTITY 31 DECEMBER 30 JUNE 2008 2008 $ $ 844,257 932,166 4,462,151 3,080,161 4,724,410 3,993,279 352,803 462,899
	10,383,621 8,468,505
	13,419 201,060 1,659,424 1,295,520 2,455,054 2,371,661 110,266 111,120
	4,238,163 **3,979,361 **
	14,621,784 12,447,866
	4,646,288 3,245,336 2,111,940 2,315,394 33,925 11,431 426,724 199,685
	7,218,877 5,771,846
	57,368 62,809
	57,368 62,809
	7,276,245 5,834,655
	7,345,539 6,613,211
	9,256,485 8,571,507 255,118 (64,212) (6,337,330) (5,499,434)
	3,174,273 3,007,861 4,171,266 3,605,350
	7,345,539 6,613,211

The balance sheet should be read in conjunction with the accompanying notes.

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Dulhunty Power Limited – Half-Year Report

Condensed Statement of Changes in Equity for the half-year ended 31 December 2008

Balance at 1.7.2007 Profit attributable to parent entity Contributions of Equity Profit attributable to Minority shareholders Foreign currency translation Balance at 31.12.2007 Balance at 1.7.2008 Loss attributable to parent entity Contributions of Equity Loss attributable to Minority shareholders Dividend paid Foreign currency translation Balance at 31.12.2008	Issued Accumulated Minority Capital Reserves Losses Interests Total $ $ $ $ $ 8,489,500 19,988 (5,594,929) 3,675,158 6,589,717 - - 18,686 - 18,686 69,507 - - - 69,507 - - - 95,926 95,926 - (14,031) - (81,117) (95,148)
	8,559,007 5,957 (5,576,243) 3,689,967 6,678,688
	8,571,507 (64,212) (5,499,434) 3,605,350 6,613,211 - - (837,896) - (837,896) 684,978 - - - 684,978 - - - (211,345) (211,345) - - - (103,269) (103,269) - 319,330 - 880,530 1,199,860
	9,256,485 255,118 (6,337,330) 4,171,266 7,345,539

The statement of changes in equity should be read in conjunction with the accompanying notes.

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Dulhunty Power Limited - Half-Year Report

Condensed Cash Flow Statement

for the half-year ended 31 December 2008

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Borrowing costs Income taxes paid NET CASH FLOWS FROM (USED IN)/FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of business assets Loans and advances received NET CASH FLOWS (USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings Issue of shares Proceeds from shareholder loans Dividends Paid Repayment of borrowings NET CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES NET INCREASE / (DECREASE) IN CASH HELD Cash at beginning of the financial period Effects of exchange rate fluctuations on the balances of cash held in foreign currencies CLOSING CASH BALANCE AT END OF FINANCIAL PERIOD	ECONOMIC ENTITY 31 DECEMBER 2008 31 DECEMBER 2007 $ $ 11,561,203 9,954,645 (11,935,626) (10,785,781) 4,398 3,699 (139,216) (97,291) (138,907) (130,562)
	(648,148) (1,055,290)
	(234,910) (186,841) 24,748 18,282 (144,342) (168,751) 1,576 -
	(352,928) (337,310)
	111,648 572,927 757,500 69,506 - - - - (35,808) (54,549)
	833,340 587,884
	(167,736) (804,716) (607,524) 9,179 206,741 17,592
	(568,519) (777,945)

The cash flow statement should be read in conjunction with the accompanying notes.

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Dulhunty Power Limited - Half-Year Report

Notes to the Half –Year Financial Statements

31 December 2008

1. BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

The half-year consolidated financial report is a general purpose financial report which has been prepared in accordance with Accounting Standard AASB 134 “Interim Financial Reporting”, the recognition and measurement requirements of applicable AASB standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The financial statements have been prepared on the basis of historical costs and do not take into account changing money values or, except where stated, current valuations of non current assets.

The half-year financial report does not include all notes of the type normally included within the annual financial report, and therefore, cannot be expected to provide as full an understanding of the income statement, balance sheet and financing and investing activities of the economic entity as the full financial report.

This half-year report should be read in conjunction with the Annual Financial Report of Dulhunty Power Limited as at 30 June 2008 and any public announcements made by Dulhunty Power Limited and its controlled entities during the half-year ended 31 December 2008, in accordance with the continuous disclosure obligations arising under the Corporation Act 2001.

The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2008.

ACCOUNTING POLICIES

(a) Principles of Consolidation

A controlled entity is any entity Dulhunty Power Limited has the power to control the financial and operating policies of so as to obtain benefits from its activities. All controlled entities have a June financial year-end.

All inter-company balances and transactions between entities in the economic entity, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistencies with those policies applied by the parent entity.

Where controlled entities have entered or left the economic entity during the year, their operating results have been included/excluded from the date control was obtained or until the date control ceased.

Minority equity interests in the equity and results of the entities that are controlled are shown as a separate item in the consolidated financial report.

(b) Significant accounting policies

The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2008.

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Dulhunty Power Limited - Half-Year Report

Notes continued 31 December 2008

2. SEGMENT INFORMATION

The group’s primary business segment is Energy/Energy Infrastructure products. Therefore the segment details are fully reflected in the results and balances reported in the income statement and balance sheet.

3. REVENUE, INCOME AND EXPENSES

(i) Revenue

Sale of goods Foreign exchange gains Finance revenue Reversal of interest accrual Other income (ii) Finance costs Bank loans and overdrafts Finance charges (ii) Expenses Write-down of investment in eChoice Pty Ltd	31 December 2008 $ 31 December 2007 $ 8,201,913 9,124,608 5,571 191,996 4,398 4,281 - 85,719 7,983 30,596
	8,219,865 9,437,200
	135,760 97,872 - 730
	135,760 98,602
	187,614 -

4. PROPERTY, PLANT AND EQUIPMENT

Acquisitions and disposals

During the half-year ended 31 December 2008, the group acquired fixed assets with a cost of $234,910 (2007: $186,841). Property, plant and equipment disposals made during the period ended 31 December 2008 amounted to net proceeds from disposal of $24,748 (2007: $18,282).

5.

BUSINESS COMBINATION

On 15 August 2008, the operating subsidiary of Dulhunty Power Limited, Dulhunty Engineering Limited acquired the business assets of Pan American Insulator Co., LLC (PAI) for a total consideration of $114,811. The purchase price was encompassed plant & equipment of $23,667 (at fair value) giving rise to goodwill on acquisition of $91,144. The contribution to consolidated result after tax for the 31 December 2008 half-year was a profit after tax of $41,811.

There were no acquisitions or disposals in the 2007 comparative period.

6. INTEREST-BEARING LOANS AND BORROWINGS

During the half year period ended 31 December 2008 the group repaid $35,808 (2007: $54,549) of interest bearing debt on both long term and short term debt.

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Dulhunty Power Limited - Half-Year Report

Notes continued

31 December 2008

7. CONTRIBUTED EQUITY

Ordinary shares (i) Ordinary shares Fully paid ordinary shares carry one vote per share and carry the right to dividends. Movement in ordinary shares on issue At 1 January 2008 Shares issued during the period - 14 April 2008 At 30 June 2008 At 1 July 2008 Shares issued during the period - 27 August 2008 - 2 October 2008 - 28 November 2008 - 23 December 2008 Less: transaction costs on issue of shares At 31 December 2008	31 December 2008 30 June 2008 $ $ 9,256,485 8,571,507
	No. of shares $ 115,183,424 8,559,007 250,000 12,500
	115,433,424 **8,571,507 **
	115,433,424 8,571,507 16,250,000 650,000 2,687,500 107,500 1,428,571 100,000 2,500,000 100,000 - (272,522)
	138,299,495 9,256,485

8. CONTINGENT LIABILITIES

Contingent liabilities have been disclosed in the 30 June 2008 annual report. No new contingencies have arisen since the 30 June 2008 annual report was signed, up until the date this 31 December 2008 half-year report is signed.

9. RELATED PARTIES

There have been no significant changes to the related party transactions disclosed in the last Annual Report. All transactions with related parties are conducted on normal commercial terms and conditions.

10. EVENTS SUBSEQUENT TO BALANCE DATE

There has not arisen since the end of the financial period any matter of circumstance which, in the opinion of the directors of the Company, significantly affects the operation of the Company, the results of those operations, or the state of affairs of the Company in subsequent financial years.

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Dulhunty Power Limited - Half-Year Report

DIRECTORS’ DECLARATION

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 8 to 14:

2. a) comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations; and

3. b) give a true and fair view of the economic entity’s financial position as at 31 December 2008 and of its performance for the half-year ended on that date.

4. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

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

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Director: Anthony J. Wingrove

Dated this 27th day of February 2009

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Independent review report to members of Dulhunty Power Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Dulhunty Power Limited, which comprises the consolidated balance sheet as at 31 December 2008, the consolidated income statement, the consolidated statement of changes in equity and consolidated cash flow statement for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors’ declaration of the consolidated entity comprising Dulhunty Power Limited and the entities it controlled at the half-year’s end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the half-year 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.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the company’s financial position as at 31 December 2008 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As auditor of Dulhunty Power Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review for a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. As a review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

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

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Dulhunty Power Limited is not in accordance with the Corporations Act 2001 including:

• i) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2008 and of its performance for the half-year ended on that date; and

• ii) complying with Accounting Standard AASB 134 “Interim Financial Reporting” and the Corporations Regulations 2001.

GOULD RALPH ASSURANCE

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GREGORY C. RALPH M.Com., F.C.A. Partner

Sydney, 27 February 2009

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