FSA GROUP LIMITED — Earnings Release 2010

Aug 31, 2010

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FSA GROUP LIMITED

1 September 2010

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FY2010 Results Announcement

Financial Overview

FSA Group is pleased to announce its final result for the 2010 financial year which included revenue of $50.8 million and a profit after tax attributable to members of $7.5 million.

	FY2009 FY2010 % Change
Revenue and Income Profit Before Tax Profit After Tax (Attributable to Members) Net Assets NTA backing/share EPS basic	$50.1m $50.8m Up 1% $13.9m $12.9m Down 8% $8.8m $7.5m Down 15% $32.1m $44.8m Up 40% 24.2c 29.9c Up 24% 7.66c 5.82c Down 24%

Executive Director Tim Odillo Maher said “The 2010 financial year has been very successful for FSA Group considering the unusual macro economic conditions which characterised the year.

In the first half, historically low interest rates together with the effect of the Government stimulus package temporarily slowed demand for our products and services. In the second half, a rising interest rate environment including a 150bp increase to the cash rate had a short term impact on the profitability of our home loan lending division. Notwithstanding, we are pleased to report that we remain the leader in the provision of debt solutions. We have maintained 51% market share for debt agreements and our loan pools represent the highest quality non-conforming home loan and factoring finance pools in the country”.

Client numbers during the 2010 financial year were as follows:

Client Numbers	FY2009 FY2010
DebtAgreements	Up 37% Down6%
Personal InsolvencyAgreements and Bankruptcy	Up22% Up2%

Cash Flow from Operations

FSA Group achieves key operating cash flow milestone

	FY2009 FY2010
Cash flow from operations	$1.06m $5.26m

During the year, the Group achieved a significant uplift in operating cash flow from $1.06 million in FY2009 to $5.26 million in FY2010. This increase reflects the strong contribution across all divisions with the exception of Debt Agreements. A change in the cash flow model of Debt Agreements in July 2007 followed amendments to the Bankruptcy Act which altered the way fees could be receipted from an upfront arrangement to a parity arrangement. Fees are now taken over the duration of a debt agreement (clients now pay an average fee of around $100 per month for 4.5 years). Since July 2007 the other divisions within the Group have been supporting the operating cash flow requirements of the Debt Agreement division.

FSA Group Limited Head Office Level 3, 70 Phillip Street Sydney, NSW, 2000

Phone: (1300) 660 032 Fax: (1300) 660 050 info@fsagroup.com.au

ASX Code: FSA

During the last quarter of FY2010, the Group is pleased to report that the Debt Agreement division achieved an important milestone by becoming cash flow positive. The Group has now grown the number of clients it administers under debt agreements, post July 2007, to a level where the fees it receives now exceed the operating cash flows required to run the division.

During the year the total number of clients administered under debt agreements increased to 11,050. The Group forecasts that this will grow to around 18,000 by the end of the 2012 financial year. The costs of administering these additional clients will not impact greatly on resources and as such the continued growth in the number of debt agreements administered by the Group will continue to increase operating cash flow over time.

Funding

In May 2010, FSA Group announced its non-recourse home loan funding facility with Westpac had been increased to $235 million and renewed to July 2011. In June 2010, it announced its limitedrecourse factoring finance funding facility with Westpac had been increased to $25 million and renewed to June 2012.

FSA Group has secured the required funding capacity to support the growth of its factoring finance loan pool for the 2011 financial year. FSA Group is currently in discussions to increase its funding capacity to support the future growth of its home loan lending loan pool.

The continued growth in operating cash flow will underpin the expansion of the Group’s home loan lending and factoring finance divisions.

Outlook

High levels of consumer debt together with a higher interest rate environment should continue to drive demand for our products and services which we expect will increase considerably in 2011 and 2012. Demand for our home loan lending and factoring finance remains strong. FSA Group is aiming to grow its home loan lending loan pool from $200 million to $600 million by 2013 and its factoring finance loan pool from $10 million to around $20 - $25 million by 2011.

On behalf of the Board Duncan Cornish Joint Company Secretary

FSA Group Limited Head Office Level 3, 70 Phillip Street Sydney, NSW, 2000

Phone: (1300) 660 032 Fax: (1300) 660 050 info@fsagroup.com.au

ASX Code: FSA