HITECH GROUP AUSTRALIA LIMITED — Earnings Release 2009

Aug 27, 2009

ASX RELEASE

26 August 2009

RESULTS FY2009

HiTech improves revenue

HiTech Group Australia Limited (HIT) today released its results for the financial year 2009.

For the financial year ended 30 June 2009, the consolidated entity’s operating revenue for the financial year is $5,703,604, an increase of 12.8% over the previous financial year.

Net loss after taxation (NLAT) is $1,020,511 (FY08: net profit of $217,897). The decrease in profitability in the 2009 financial year was mainly due to unrealised losses of $769,311 from investment in the stock market. The international financial crisis (GFC) has had a serious effect on the Group’s investments in listed companies resulting in a substantial write down which has contributed 75% to the Group’s loss for the year.

The directors are pleased with the improvement on last year’s revenue results. Profit has however been affected by a fall of 26.6% in high margin permanent placement income whilst contracting income increased by 24.9%.

HiTech remains well funded with a strong balance sheet and no debt. HiTech continues to win new business and is increasing its client base steadily.

Outlook for FY2010

The outlook for FY2010 will depend primarily on the prevailing economic conditions at the time. There seems to be a decline in job vacancies as a result of the GFC. We have diversified into non-ICT areas and increased our client base.

Chairman and CEO Ray Hazouri said:

"I am pleased with the improved revenues. We are hoping that the stock market will improve significantly to reverse the unrealised (but not actual) loss as a result of our investment in listed stocks. HiTech has a good balance sheet and remains strong with no debts. HiTech’s current low share price is not indicative of our company’s real value as it remains even well below our company’s net tangible asset value (NTA).

I thank our clients, staff members, and shareholders for their continued support.”

For further information, please contact Chairman and CEO Ray Hazouri on 02 9241 1919.