HANSEN TECHNOLOGIES LIMITED — Interim / Quarterly Report 2011

Feb 15, 2011

HANSEN TECHNOLOGIES LTD ABN 90 090 996 455 AND CONTROLLED ENTITIES

HALF-YEAR INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2010 PROVIDED TO THE ASX UNDER LISTING RULE 4.2A

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2010.

-1-

Rule 4.2A.3

Appendix 4D Half Year Report for the six months to 31 December 2010

Hansen Technologies Ltd and its Controlled Entities

ABN or equivalent company reference: ABN: 90 090 996 455

1. Reporting period

Report for the half year ended:	31 December 2010
Previous corresponding periods:	Financial year ended 30 June 2010
	Half year ended 31 December 2009

2. Results for announcement to the market

	$A’000	$A’000
Revenues from ordinary activities Net profit after tax attributable to members	Down 4% to 27,983 Up 54% to 6,913
	Amount per security	Franked amount per security
Interim Dividend Declared
Interim dividend for the 2011 fiscal year	3¢	2¢
Interim dividend for previous corresponding period	2¢	2¢
Payment date for the interim dividend for the half-year ended 31 December 2010	28 March 2011
Previous Final Dividend Paid
Final dividend for the year ended 30 June 2010	3¢	3¢
Final dividend for previous corresponding period	3¢	3¢
Payment date for the final dividend for the year ended 30 June 2010	27 September 2010

-2-

The Group operating result for the half year to 31 December 2010 comprised:

• Revenue of $27.983 million, a 4% decrease over the previous corresponding period

• EBITDA of $10.078 million, up 27% on the previous corresponding period

• Profit before Tax of $8.828 million, up 43% on the previous corresponding period

• Net Profit after Tax of $6.913 million, up 53% on the previous corresponding period

The Directors of Hansen have declared a partially franked interim dividend of 3 cents per share, with:

• 2 cents per share fully franked, and

• 1 cent per share unfranked,

• a record date of 7 March 2011,

• payment on 28 March 2011, and

• a 5% discount to the application price for shares issued in accordance with the Company’s Dividend Reinvestment Plan.

In announcing the half year result, Hansen’s Chief Executive Andrew Hansen observed, “As a result of our international expansion, 40% of revenue is now derived in foreign currencies. The appreciation of the Australian dollar has had an impact on our businesses performance. Revenues in the first half were a net $1 million lower than for the previous corresponding period. However, as a significant part of our cost structure for labour and occupancy is now incurred in those same currencies we have offsetting cost reductions which, together with ongoing investment in development efficiencies, has allowed us to achieve an improved operating result in spite of the net fall in revenues.

We have worked hard to diversify both our industry and customer base and overlayed that geographically. The recent acquisition in November of the New York based complex energy billing solution provider, Nirvanasoft, plays well into our strategy. As a result, along with an expanded focus on sales and marketing, we are seeing an increased awareness of our profile and solutions.

In the first half of this year we have also invested in our Melbourne based data centre operations to expand our available physical capacity to provide a full range a facilities management and outsourced IT services. We are already providing “cloud computing solutions” to our clients and we will be expanding our services in this area in the second half.

Our business is built on a fundamental commitment to supporting our customers, their requirements for performance improvement and the changing technologies of the industries within which they operate. As the owner of our proprietary software solutions we are able to remain flexible and responsive to our customer needs.

In the second half of this year we have as initiatives:

• Completing the integration of the Hansen business in North America

• Continuing the pursuit of efficiencies in our software development processes

• Progressing with our R&D and intelligence gathering around the Electricity smart grid initiatives,

• Continue with investigation and formal review of expansion opportunities with a view to acquiring compatible and complementary businesses.

Our first 6 months operating performance is a strong start for this fiscal year. I am convinced we are well positioned both with products and funding to continue to grow our business strongly.

NOTE: Shareholders wishing to participate in the Dividend Reinvestment Plan need to have lodged the required DRP Notice with the Company’s Share Registry by no later than 5.00pm on the record date, 7 March 2010.

-3-

3. Net tangible assets per security

Net tangible asset backing per ordinary security

Current period	Previous corresponding period
12.7 cents	11.2 cents

4. Dividends

Three cent final dividend – year ended 30 June 2010 Three cent interim dividend - half-year ended 31 December 2010	Date of payment	Total amount of dividend
	27 September 2010	$4,652,907
	28 March 2011	$4,665,036

Amount per security

Amount per security
	Amount per security	Franked amount per security at % tax	Amount per security of foreign sourced dividend
Total dividend paid:Previous year (final) Previousyear(interim)	3¢	30%	0¢
	2¢	30%	0¢

Total dividend on all securities paid during the half-year

Ordinary securities Total	December 2010 $A'000	December 2009 $A'000
	4,653	4,621
	4,653	4,621

-4-

5. Details of dividend or distribution reinvestment plans in operation are described below:

A Dividend Reinvestment Plan has been established to provide shareholders with the opportunity to reinvest dividends in new shares rather than receiving cash. The directors may alter, suspend or terminate the terms of the Dividend Reinvestment Plan at any time.

The last date(s) for receipt of election notices for participation in the dividend or distribution reinvestment 7 March 2011 plan

6. The financial information provided in the Appendix 4D is based on the half year condensed financial report (attached).

7. Independent review of the financial report

The financial report has been independently reviewed. The financial report is not subject to a qualified independent review statement.

-5-

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

HANSEN TECHNOLOGIES LTD

ABN 90 090 996 455

AND CONTROLLED ENTITIES

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED

31 DECEMBER 2010

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2010.

1

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

HANSEN TECHNOLOGIES LTD AND CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED

31 DECEMBER 2010

TABLE OF CONTENTS

	Page
Directors' Report	3-4
Auditor’s Independence Declaration	5
Financial Report for the half year ended 31 December 2010
Condensed Consolidated Statement of Comprehensive Income	6
Condensed Consolidated Statement of Financial Position	7
Condensed Consolidated Statement of Changes in Equity	8
Condensed Consolidated Statement of Cash Flows	9
Notes to the Financial Statements	10-12
Directors' Declaration	13
Independent Auditor's Review Report	14

2

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Directors Report

The directors present their report together with the condensed financial report of the consolidated entity consisting of Hansen Technologies Ltd and the entities it controlled, for the half-year ended 31 December 2010 and independent review report thereon. This financial report has been prepared in accordance with Australian equivalents of International Financial Reporting Standards.

Directors Names

The names of the directors in office at any time during or since the end of the half-year are:

Name

Mr Kenneth Hansen Mr Andrew Hansen Mr Bruce Adams Mr David Osborne Mr Phillip James

Period of Directorship

Chairman since 2000 Managing Director since 2000 Director since 2000 Director since 2006 Director since 2008

The directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Review of Operations

The consolidated profit of the group for the half-year after providing for income tax amounted to $6,913,365 representing a 54% improvement on the $4,492,525 in the previous corresponding period.

The Group operating result for the half year to 31 December 2010 comprised:

• Revenue of $27.983 million, a 4% decrease over the previous corresponding period

• EBITDA of $10.078 million, up 27% on the previous corresponding period

• Profit before Tax of $8.827 million, up 43% on the previous corresponding period

• Net Profit after Tax of $6.913 million, up 53% on the previous corresponding period

The directors of Hansen have declared a partially franked interim dividend of 3 cents per share, with 2 cents per share being fully franked 1 cent per share unfranked, as at the record date of 7 March 2011, with payment to follow on 28 March 2011.

The directors have also declared a 5% discount to the application price for shares in accordance with the Company's Dividend Reinvestment Plan. Shareholders wishing to participate in the Dividend Reinvestment Plan need to have lodged the required DRP Notice with the Company’s Share Registry by no later than 5.00pm on the record date, 7 March 2011.

In the first half of this fiscal year we have experienced the impact of the significant appreciation of the Australian dollar. As a result of our international expansion, 40% of revenue is now derived in foreign currencies. The higher value for the $A means that our total revenue is a net $1.061 million lower than for the previous corresponding period.

However, as a significant part of our cost structure for labour and occupancy is now incurred in those same currencies, we have offsetting cost reductions which, together with ongoing investment in development efficiencies, have allowed us to achieve an improved operating result in spite of the net fall in revenues.

With the $A at medium term historical highs we see this as reinforcing our objective of international expansion through the acquisition of compatible businesses. The acquisition of NirvanaSoft Inc. in November has raised our company’s profile in the USA and we are already seeing increased awareness of our product offerings in that market.

Significant Changes in the State of Affairs

As notified to the Australian Securities Exchange (ASX), Hansen Technologies Ltd acquired 100% of USA based NirvanaSoft Inc with effect on 1 November 2010.

Auditor's Declaration

A copy of the auditor’s declaration as required under section 307C of the Corporation Act 2001 in relation to the review for the half-year is provided with this report.

3

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Rounding of Amounts to Nearest Thousand Dollars

The amounts contained in the report and in the financial report have been rounded to the nearest thousand dollars (where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

Signed in accordance with a resolution of the directors:

==> picture [143 x 32] intentionally omitted <==

Kenneth Hansen Director

==> picture [110 x 43] intentionally omitted <==

Andrew Hansen Director

Dated this 15th day of February 2011.

4

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

==> picture [140 x 41] intentionally omitted <==

==> picture [107 x 7] intentionally omitted <==

----- Start of picture text -----

Auditor's Independence Declaration
----- End of picture text -----

To the Directors of Hansen Technologies Ltd.

In relation to the independent review for the half-year ended 31 December 2010, to the best of my knowledge and belief there have been:

(i) No contraventions of the auditor independence requirements of the Corporations Act 2001.

• (ii) No contraventions of any applicable code of professional conduct.

==> picture [142 x 39] intentionally omitted <==

S SCHONBERG Partner

PITCHER PARTNERS Melbourne

15 February 2011

==> picture [443 x 35] intentionally omitted <==

5

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

6

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities

Condensed Consolidated Statement of Comprehensive Income For the Half Year Ended 31 December 2010

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Comprehensive Income For the Half Year Ended 31 December 2010
Revenue from ongoing operations Other revenues Total revenue Employee expenses Depreciation and amortisation expenses Property and operating rental expenses Contractor and consultant expenses Software licence expenses Hardware and software expenses Travel expenses Communication expenses Professional expenses Other expenses Total expenses Profit before income tax expense Income tax expense Profit after income tax from ongoing operations Other comprehensive income Movement in carrying value of foreign entities due to currency translation Basic earnings (cents) per share for ongoing operations Total basic earnings (cents) per share Diluted earnings (cents) per share for ongoing operations Total diluted earnings (cents) per share Total comprehensive income attributable to members of the parent	Half-year to Dec
	2010	2009
	$'000	$'000
	27,983 1,815	29,044 87
	29,798	29,131
	(13,672) (1,749) (1,134) (743) (130) (1,497) (634) (328) (447) (637)	(14,878) (2,130) (1,138) (946) (32) (1,594) (753) (359) (335) (829)
	(20,971)	(22,994)
	8,827 (1,914)	6,137 (1,644)
	6,913	4,493
	(1,804)	(277)
	5,109	4,216
	4.5	2.9
	4.5 4.4	2.9 2.9
	4.4	2.9

7

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Financial Position As at 31 December 2010

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Financial Position As at 31 December 2010
Current Assets Cash and cash equivalents Receivables Other current assets Total Current Assets Non-Current Assets Plant, equipment & leasehold improvements Intangible assets Deferred tax assets Total Non-Current Assets Total Assets Current Liabilities Payables Current tax payable Provisions Unearned income Total Current Liabilities Non-Current Liabilities Provisions Total Non-Current Liabilities Total Liabilities Net Assets Equity Share capital Foreign currency translation reserve Options granted reserve Retained earnings Total Equity	Dec-10	Jun-10
	$'000	$'000
	19,016 7,730 2,321	23,450 8,178 2,817
	29,067	34,445
	4,736 29,681 1,238	3,441 27,497 1,075
	35,655	32,013
	64,722	66,458
	4,337 909 4,719 3,744	4,350 1,526 4,680 5,547
	13,709	16,103
	337	458
	337	458
	14,046	16,561
	50,676	49,897
	49,018 (2,211) 220 3,649	48,715 (407) 200 1,389
	50,676	49,897

8

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Changes in Equity For the Half Year Ended 31 December 2010

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Changes in Equity For the Half Year Ended 31 December 2010
Consolidated Balance as at 1 July 2010 Profit for the half-year Movement in carrying value of foreign entities due to currency translation Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Options exercised Employee share options Capital issued under dividend reinvestment plan Dividends paid Total transactions with owners in their capacity as owners Balance as at 31 December 2010	Half-year to Dec
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	48,715 0 0	(207) 0 (1,804)	1,389 6,913 0	49,897 6,913 (1,804)
	0	(1,804)	6,913	5,109
	69 0 234 0	0 20 0 0	0 0 0 (4,653)	69 20 234 (4,653)
	303	20	(4,653)	(4,330)
	49,018	(1,991)	3,649	50,676

Consolidated Balance as at 1 July 2009 Profit for the half-year Movement in carrying value of foreign entities due to currency translation Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Options exercised Employee share options Capital issued under dividend reinvestment plan Share buy back Dividends paid Total transactions with owners in their capacity as owners Balance as at 31 December 2009	Half-year to Dec	Half-year to Dec	Half-year to Dec	Half-year to Dec
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	48,199 0 0	(335) 0 (277)	(2,041) 4,493 0	45,823 4,493 (277)
	0	(277)	4,493	4,216
	117 0 180 (39) 0	0 17 0 0 0	0 0 0 0 (4,621)	117 17 180 (39) (4,621)
	258	17	(4,621)	(4,346)
	48,457	(595)	(2,169)	45,693

9

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Cash Flows For the Half Year Ended 31 December 2010

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Borrowing costs Income tax paid Net cash provided by operating activities

Cash flows from investing activities Payment for acquisition of business Payment for plant and equipment Payment for capitalised research and development Net cash used in investing activities

Cash flows from financing activities Proceeds from options exercised Payments for share buy back Dividends paid net of dividend re-investment Net cash used in financing activities

Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of half-year

Cash and cash equivalents at end of the half-year

Half-year to Dec	Half-year to Dec
2010	2009
$'000	$'000
29,064 (21,914) 256 (9) (2,694)	29,479 (23,844) 119 (2) (2,579)
4,703	3,173
(2,483) (2,045) (250)	0 (973) (500)
(4,778)	(1,473)
69 0 (4,427)	117 (38) (4,427)
(4,358)	(4,348)
(4,433) 23,449	(2,648) 20,518
19,016	17,870

10

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Notes to the Half-Year Financial Statements 31 December 2010

1 Basis of Preparation of the Half-Year Financial Report

This half-year financial report does not include all the notes of the type usually included in an annual financial report.

It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2010 and any public announcements made by Hansen Technologies Limited during the half-year in accordance with any continuous disclosure obligations arising under the Corporations Act 2001 .

The half-year financial report was authorised for issue by the directors as at the date of the directors' report.

(a) Basis of preparation

This general purpose half-year financial report has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

The half-year financial report has been prepared under the historical cost convention, as modified by revaluations to fair value for certain classes of assets as described in the accounting policies.

The accounting policies applied in this half-year financial report are consistent with those of the annual financial report for the year ended 30 June 2010 and the corresponding halfyear.

(b) Summary of the significant accounting policies

All accounting policies applied in this half-year financial report are the same as those used in the annual financial report for the year ended 30 June 2010.

(c) Rounding amounts

The company is of a kind referred to in ASIC Class Order CO 98/0100 and in accordance with that Class Order, amounts in the financial statements have been rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar.

2 Dividends

Dividends paid during the half-year:

• 3 cent final dividend paid 27 September 2010

• 3 cent final dividend paid 2 October 2009

Proposed dividend not recognised at the end of the half-year

Half-year to Dec	Half-year to Dec
2010	2009
$'000	$'000
4,653	4,621
4,653	4,621
4,665	3,089

Number of ordinary shares on issue Movement in ordinary shares on issue Beginning balance Dividend re-investment plan Share buy back Options exercised Ending balance	2010	2009
	No.	No.
	155,426,203	154,437,772
	154,836,901 329,302 0 260,000	153,575,594 294,289 (77,111) 645,000
	155,426,203	154,437,772

11

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

3 Segment Information

Inter-segment pricing is determined on an arm's length basis. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise income-earning assets and revenue, and corporate assets and expenses.

Business Segments

The consolidated entity comprises the following main business segments, based on the consolidated entity's management reporting system:

Billing : Represents the sale of billing applications and the provision of consulting services in regard to billing systems.

IT Outsourcing : Represents the provision of various IT outsourced services covering facilities management, systems and operations support, network services, telehousing and business continuity support.

Other : Represents software and service provision in superannuation administration.

Half-year 2010 Segment revenue Total segment revenue Segment revenue from external source

Segment result Total segment result Segment result from external source Interest revenue Interest expense Depreciation & amortisation Income tax expense Realised / Unrealised FX Other

Profit after income tax

Half-year to Dec 2010	Half-year to Dec 2010	Half-year to Dec 2010	Half-year to Dec 2010
Billing	IT Outsourcing	Other	Total
$'000	$'000	$'000	$'000
22,160	3,389	2,434	27,983
22,160	3,389	2,434	27,983
6,781	1,899	831	9,511
6,781	1,899	831	9,511
			508 (9) (1,749) (1,914) 1,248 (682)
			6,913

Half-year 2009 Segment revenue Total segment revenue Segment revenue from external source Segment result Total segment result Segment result from external source Interest revenue Interest expense Depreciation & amortisation Income tax expense Realised / Unrealised FX Other Profit after income tax	Half-year to Dec 2009	Half-year to Dec 2009	Half-year to Dec 2009	Half-year to Dec 2009
	Billing	IT Outsourcing	Other	Total
	$'000	$'000	$'000	$'000
	22,703	3,449	2,892	29,044
	22,703	3,449	2,892	29,044
	7,907	1,646	1,116	10,669
	7,907	1,646	1,116	10,669
				361 (2) (2,130) (1,644) (325) (2,436)
				4,493

12

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

4 Business Combinations

(a) Business Combination Disclosure

i) The company acquired 100% of the share capital of NirvanaSoft Inc, with the effective date being 1 November 2010.

Consideration Cash Paid / Payable Shares Issued as Consideration Total Acquisition Cost Less Cash Acquired Payment for Acquisition of Business Net Assets Acquired Assets Cash Trade and other receivables Plant & equipment Total Assets Acquired Liabilities Trade and other payables Provisions Total Liabilities Acquired Net Assets Acquired Total Acquisition Cost Adjusted for Net Assets Acquired Represented by: Tradename Customer relationships Goodwill Total Intangibles	Half-year to Dec	Half-year to Dec
	2010	2009
	$'000	$'000
	1,285 0	0 0
	1,285 (94)	0 0
	1,191	0
	Fair Value	Carrying Amount on Acquisition
	2010	2010
	$'000	$'000
	94 897 12	94 897 12
	1,003 2,571 130	1,003 2,571 130
	2,701	2,701
	(1,698)	(1,698)
	2,983
	152 458 2,373
	2,983

Goodwill arose on the acquisition of NirvanaSoft Inc. due to the combination of the consideration paid for the business and the negative net assets acquired, less values attributed to other intangibles in the form of tradenames and customer relationships.

ii) Revenue and profit of NirvanaSoft Inc included in consolidated results of the group since acquisition Total revenue Profit after income tax
	Half-year to Dec
	2010
	$'000
	582
	25

iii) Results of combined entity for the period as though the acquisition date for the acquisition of NirvanaSoft Inc occurred at 1 July 2010.

It is impracticable to disclose this detail as NirvanaSoft Inc did not report in accordance with IFRS and Hansen do not have audited financials available to base a reliable projection upon.

5 Contingent Liabilities

There have been no changes in contingent liabilities since 30 June 2010.

6 Subsequent Events

The directors of Hansen have declared a partially franked interim dividend of 3 cents per share, with 2 cents per share being fully franked 1 cent per share unfranked, as at the record date of 7 March 2011, with payment to follow on 28 March 2011.

The directors have also declared a 5% discount to the application price for shares in accordance with the Company's Dividend Reinvestment Plan.

13

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

There were no other material events subsequent to the period ending 31 December 2010 that have significantly affected or may significantly affect the consolidated entity.

14

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd Directors Declaration

The directors declare that the financial statements and notes set out on pages 6 to 12 in accordance with the Corporations Act 2001 :

(a) Comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 , and other mandatory professional reporting requirements; and

• (b) Give a true and fair view of the financial position of the consolidated entity as at 31 December 2010 and of its performance for the half-year ended on that date.

In the directors’ opinion there are reasonable grounds to believe that Hansen Technologies Ltd 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 directors.

==> picture [131 x 33] intentionally omitted <==

Kenneth Hansen Director Melbourne 15 February 2011

==> picture [116 x 45] intentionally omitted <==

Andrew Hansen Director

15

Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

==> picture [141 x 41] intentionally omitted <==

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF HANSEN TECHNOLOGIES LTD

Report on the Half-Year Financial Report

We have reviewed the accompanying half ‑ year financial report of Hansen Technologies Ltd and controlled entities, which comprises the condensed consolidated statement of financial position as at 31 December 2010, the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half ‑ year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half ‑ year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is

necessary to enable the preparation of the half ‑ year financial report that is free from material misstatement, whether due to fraud or error.

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 a Financial Report Performed by the Independent Auditor of the Ent ity, 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 2010 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 the auditor of Hansen Technologies Ltd and controlled entities, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of 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. 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 Hansen Technologies Ltd and controlled entities is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the company's financial position as at 31 December 2010 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

==> picture [155 x 42] intentionally omitted <==

S SCHONBERG Partner 15 February 2010

PITCHER PARTNERS Melbourne

==> picture [443 x 38] intentionally omitted <==

16