IRESS LIMITED — Earnings Release 2007

Feb 24, 2008

25 February 2008

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The Manager Company Announcements Office Australian Stock Exchange 10[th] Floor, 20 Bond Street SYDNEY NSW 2000

ELECTRONIC LODGEMENT

Dear Sir or Madam

2007 Full Year Results – Media Release

Please find attached a copy of the media release for IRESS Market Technology Limited for the full-year ended 31 December 2007.

Yours sincerely

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Stuart Bland Company Secretary

IRESS Market Technology Ltd A.B.N. 47 060 313 359

Corporate Office:

Level 18, 385 Bourke Street Melbourne Vic Australia Tel: (03) 9018 5800 Fax (03) 9018 5844

Sydney Office:

Suite 4, 14 Martin Place Sydney NSW Australia Tel: (02) 8273 7000 Fax: (02) 8273 7003

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Media Release: 25 February 2008

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Adjusted Group profit $39.0 million (2006: $29.6m), up 32% EBITDA up 37.8%

Wealth Management transformed by growth & acquisition

Adjusted Profit up 292%

Canadian revenue growth of 60% & EBITDA positive for H2’07

Reported Group profit $25.5 million (2006: $24.3m)

Fully franked final dividend of 16.0¢ (2006: 13.0¢)

IRESS today announced its results for the year ended 31 December 2007. The Company provided the following breakdown of its results.**

Operating Revenue 2007 2006 2005 EBITDA 2007 2006 2005 Profit before tax (c) 2007 2006 2005 Profit after tax (d) 2007 2006 2005	Recurring Operational (a) Equity Services (Aust, NZ) (A$m) Equity Services (Canada) (C$m) (b)(c) Wealth Mgt Services (Aust, NZ & RSA) (A$m) Underlying Group (c) (A$m) 89.558 10.777 32.913 134.469 75.798 6.738 9.992 93.706 65.742 3.321 4.858 74.178 49.119 (0.692) 12.710 61.083 41.527 (0.286) 3.199 44.382 35.036 0.156 1.096 36.294 46.576 (1.656) 11.386 56.141 40.573 (0.694) 2.906 42.655 34.837 0.019 963 35.814 32.370 (1.151) 7.914 39.019 28.198 (0.483) 2.020 29.645 24.212 0.013 0.670 24.892		Published
			Group (A$m) 25.477 24.260 19.625

** A more detailed breakdown of operating results, including a breakdown of results for each region, non-recurring items and strategic charges is included as an attachment to this release and in the accompanying slide presentation.

(a) IRESS considers inter-period comparability of results is best presented as the underlying operating results of the relevant businesses calculated excluding share based payments, non-recurring items, and strategic amortisation charges.

(b) Please note the figures in this column are denominated in Canadian dollars.

(c) Results in these columns reflect the Canadian joint venture being accounted for on a proportional consolidation basis to March 2006.

(d) The Recurring Operational totals have been calculated before share based payment (“SBP”) expenses. Group SBP expenses recognised for the year was 4.239m in 2007 (2006: 3.057m).

Note: There are some minor changes to prior period figures to enhance comparability between the periods

In the light of this strong result, IRESS Directors declared a fully franked final dividend of 16.0 cents per share (2006: 13.0 cents) payable on the 28 March 2008.

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Overall Group

IRESS Managing Director, Peter Dunai said the company’s results demonstrated the strengths of its major divisions in their different stages of development. “Our core Australian and New Zealand information and trading systems division again showed its resilience producing another strong and consistent performance in terms of revenue and profit growth. Wealth management software has been transformed by acquisition and organic growth into a major component of the group and the leading provider in Australia, New Zealand and South Africa. Canadian operations have produced impressive revenue growth with an EBITDA positive result for the second half and, already in 2008, a material EBITDA contribution on a run rate basis. Group revenue at A$135m and adjusted profit of A$39m demonstrate the company’s success in achieving both growth and high levels of profitability. Recent turmoil and volatility in the financial markets has had no impact to date on the company’s performance, with revenue growth early in 2008 consistent with expectations.”

Equity Services – Aust & NZ

The equity services division demonstrated its capacity for organic growth with revenue up 18% over 2006 with the second half up 8.6% on the first. EBITDA was similarly up 18% annually and 6.8% in the second half. As in previous years margins fell slightly in the second half given the seasonal impact of salary increases and bonus payments; our major cost. Depreciation and amortisation showed a material increase over previous years as a result of co-incidental office moves in Melbourne, Sydney and Brisbane and increased write-offs related to third party software. Highlights for the year:

• Broad based growth of IRESS services over buy and sell side.

• Key new Web IRESS clients. All major on-line brokers now customers.

• Ongoing growth of FIX connections.

• Launch of high speed low latency FIX+.

• Significant new FTS (buy side order management system) sales.

• IPS (tax portfolio system) enhancements including corporate actions, modelling and integrated managed account features.

• IOS+ further tailored for the Australian market with bridge to current network.

Business Outlook:

Early months of 2008 have seen revenue growth at similar levels to preceding years. While it is speculated that the difficult commercial environment facing investment banks and brokers internationally will impact the performance of vendors we have yet to see any evidence of this.

Equity Services - Canada

In 2007 the Canadian division made dramatic progress dealing with both our internal challenges around cut-over of the REUTERS CX user base and the external challenges posed by significant changes in the Canadian market environment. Revenue growth on an annualised run rate basis moved from C$8.3m in January to C$14m by December. Reflecting this EBITDA moved from a loss of C$730k in the first half to a small profit in the second half. To service this growth, costs were scaled up over the year to approximately C$12m annualised but should stabilise going forward. Highlights for the year:

• 90% plus conversion of CX Order Entry user base.

• Release of smart order router to manage new trading venues.

• New primary data centre co-located with TSX brought on line.

• FIX+ high speed DMA solution in production.

• KTA+ enhanced IRESS technology replacement for KTA terminals.

• CX OMS customers converted from November and completed early 2008.

• • Further “North Bound” IOS sales.

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Business Outlook:

In the first few months of 2008 the CX OMS roll-out has been completed with significant extra revenue as these customers move to billing. The Canadian business is now materially EBITDA positive to the tune of around $C3m on an annualised run-rate basis and therefore poised to make a significant contribution to IRESS results in 2008. Given the heavy schedule of implementations over recent months our focus to mid-year is primarily on stabilisation and consolidation of the expanded client base but we expect organic growth to continue in the second half.

Wealth Management – Aust & NZ and South Africa

Acquisition of the VisiPlan and Spotlight businesses in the first half further transformed our wealth management division into a major part of the group contributing on an annualised basis nearly 30% of revenue and 23% of EBITDA. Results in the second half demonstrate the pleasing retention of revenue from both acquisitions and a slightly higher than expected EBITDA margin (37%) than originally flagged.

In Australia and New Zealand, the combination of our own rapidly growing Xplan business with first PlanTech in late 2006 and then Visi in April, has made IRESS the leading provider of software to wealth management advisers by a significant margin. Xplan’s innovative technology suite, PlanTech’s risk research leadership and the well accepted Visi desktop platform provide our clients with a unique set of product options. Our resulting distribution scale provides the opportunity and capacity to invest further in functionality, content and connectivity. Similarly in South Africa the acquisition of Spotlight when added to the existing PlanTech operation gives us market leadership and an exciting opportunity to implement the Xplan web-based technology, in response to demand already demonstrated.

Some highlights:

• Roll-out of Xplan with upgraded version of Risk Researcher, and integration into Visi.

• Strong demand from many PlanTech and Visi users for conversion to Xplan.

• Continued enhancement of Visi suite for key VisiPlan clients.

• Asteron joins Zurich on App Central – mounting interest and more to come.

• CommPay commission and dealer-pay system released as integrated component of Xplan.

• SuperSolver released in Xplan in response to need for reasonable basis of advice tools for comparison of superannuation products. Now being integrated to Visi.

• Asgard Wealth Solutions licenses Xplan’s financial modelling software for platform.

• Preparatory development work for 2008 initiatives in STP and content.

• Merging of Spotlight and PlanTech operations in South Africa.

• Roll-out of substantial Old Mutual contract commenced in South Africa.

• Development of South Africa version of Xplan well underway for release mid 08.

Business Outlook:

2008 will be primarily a year of consolidating the acquisitions with a focus on re-affirming a common service structure for all clients, facilitating conversions to web-based Xplan in line with demand, and aligning central architecture across products for consistency and developmental efficiency. A number of initiatives such as CommPay, AppCentral and others will be rolled out across the client base and we are confident of achieving organic growth from the many existing clients and competing successfully for new business.

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The attached presentation comments further on the result, operations and outlook.

For further information please contact:

Peter Dunai Neil Hamilton Managing Director Chairman (03) 9018 5800 (03) 9018 5800

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Detailed Results Analysis:

	Equity Services A&NZ (A$m) Equity Services Canada (C$m) (b)(d) Equity Services Total (A$m)(b) Wealth Mgt Services A&NZ (A$m) Wealth Mgt Services RSA (ZAR m)(d) Wealth Mgt Services Total (A$m)	Underlying Group (A$m) (b) Strategic / Non - Operating Charges (A$m)	Underlying Group (A$m) (b) Strategic / Non - Operating Charges (A$m)	Total (A$m) (b)
Recurring Operational(a)
Operating Rev 2007	89.558 10.777 101.556 28.800 24.575 32.913	134.469 -		134.469
2006	75.798 6.738 83.714 9.769 1.262 9.992	93.706 -		93.706
2005	65.742 3.321 69.320 4.858 - 4.858	74.178 -		74.178
EBITDA 2007	49.119 (0.692) 48.373 12.710	61.083 -		61.083
2006	41.527 (0.286) 41.183 3.199	44.382 -		44.382
2005	35.036 0.156 35.198 1.096	36.294 -		36.294
Profit before tax 2007	46.576 (1.656) 44.755 11.386	56.141 (12.006)		44.135
(c) 2006	40.573 (0.694) 39.749 2.906	42.655 (3.163)		39.492
2005	34.837 0.019 34.851 963	35.814 (3.879)		31.935
Profit after Tax 2007	32.370 (1.151) 31.105 7.914	39.019	(8.344)	30.675
(c) 2006	28.198 (0.483) 27.625 2.020	29.645	(2.198)	27.447
2005	24.212 0.013 24.222 0.670	24.892	(2.696)	22.196
SBP & Non-Recurring:
Share Based Pmts. 2007	- - - - - -	(4.239) -		(4.239)
2006	- - - - - -	(3.057) -		(3.057)
2005	- - - - - -	(2.408) -		(2.408)
Total Non-Rec Exp. 2007	(0.550) (0.051) (0.606) (0.474) 0.014 (0.474)	(1.080) -		(1.080)
Before Tax 2006	0.412 (0.399) (0.062) (0.442) - (0.442)	(0.504) -		(0.504)
2005	0.331 (0.055) 0.273 0.006 - 0.006	0.279 -		0.279
Tax on Non Recurring + other balance sheet adjustments 2007 2006 2005				0.121 0.376 (0.441)
Reported: Profit after tax 2007 2006
				25.477
				24.260
2005				19.625

(a) More commentary on operating results. non-recurring items and strategic charges is included in the accompanying slide presentation.

(b) Results in these columns reflect the Canadian joint venture being accounted for on a proportional consolidation basis to March 2006.

(c) These Recurring operational totals have been calculated before share based payment (“SBP”) expenses.

(d) Please note figures in this column are reported in the underlying natural currency for this business segment.

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Additional commentary on the items excluded from the underlying group operating results:

- Strategic / Non Operating charges

As with prior periods, to improve comparability and provide a better insight to the true underlying business these acquisition related asset amortisation charges have been stripped out of the relevant business unit and shown separately under the heading of strategic / nonoperating charges.

The main changes to strategic charges against the prior year were:

• the scaling up of CX trader conversion commission payments as clients have converted from CX Trader products to the IRESS replacement products of $0.518m in 2007 (2006: $0.002m);

• the full period charge for computer software recognised on the acquisition of Plantech of $3.813m in 2007 (2006: $0.953m);

• the part period amortisation charge for computer software recognised on the acquisition of VisiPlan of $5.056m in 2007 (2006: nil);

• the part period amortisation charge for customer list recognised on the acquisition of VisiPlan of $0.108m in 2007 (2006: nil); and

• the part period amortisation charge for computer software of $0.124m in 2007 (2006: nil) and customer list of $0.156m in 2007 (2006: nil) recognised on the acquisition of Spotlight.

Other than arising from an acquisition, no software development related expenses are capitalised. All expenditure on software development following an acquisition is expensed and is reflected in the relevant business unit’s results.

Please note: The slide presentation accompanying this announcement provides details as to the anticipated strategic charges for future periods – refer slides #40 &41 .

Share Based Payments

While acknowledging the requirement to expense share based payments in the income statement, for the “media release” presentation of results. IRESS has excluded share based payment expense from the recurring operational results to enhance inter period compatibility.

Please note: The slide presentation accompanying this announcement provides details as to the currently committed share based expenses arising in future periods– refer slides # 37 &38

Non-Recurring Expenses

Certain expenses are stripped out of the recurring operational results as they are considered to be of a nature which if included, may distort inter-period comparability. In the 2007 result, these non-recurring items comprised:

• direct rental expenses duplicated during the fit-out and relocation of office premises in Melbourne and Sydney of $0.380;

• staff rationalisation expenses associated with the purchase of VisiPlan of $0.145m;

• other costs associated with VisiPlan / Spotlight acquisition of $0.322m;

• other once off cost of $0.169m; and

• net foreign currency loss of $0.064m.

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