IRESS LIMITED — Earnings Release 2009

Feb 23, 2010

24 February 2010

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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

2009 Full Year Results – Media Release

Please find attached a copy of the media release on the Company’s results for the full‐year ended 31 December 2009.

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: 24 February 2010

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Adjusted Group profit $53.6 million (2008: $48.5m), up 10.5%

EBITDA up 8.0%, with overweight Canadian contribution

Reported Group profit $42.8 million (2008: $35.6m) up 20.1%

Fully franked final dividend of 21.0¢ (2008: 19.0¢)

IRESS today announced its results for the full year ended 31 December 2009. The Company provided the following breakdown of its results.**

Operating Revenue 2009 2008 2007 EBITDA 2009 2008 2007 Profit before tax 2009 2008 2007 Profit after tax 2009 2008 2007	Recurring Operational (a)	Underlying Group (b) (A$m) 169.477 163.848 134.469 82.640 76.491 61.083 77.165 69.843 56.141	Reported Group (A$m)
	Financial Markets Wealth Mgt Aust & NZ (A$m) Canada (C$m) Aust & NZ (A$m) RSA (ZAR m) Asia (A$m)
	99.095 19.667 41.291 44.244 0.202 99.689 17.297 39.306 38.711 - 89.558 10.777 28.800 24.575 - 56.635 6.243 16.929 14.536 (0.176) 55.167 4.131 15.260 10.027 - 49.119 (0.692) 10.941 10.539 - 55.151 5.308 14.240 13.519 (0.268) 52.541 3.140 12.439 9.345 - 46.576 (1.656) 9.644 10.375 - 38.330 3.689 9.897 9.395 (0.186) 36.516 2.182 8.645 6.494 - 32.370 (1.151) 6.703 7.211 -
		53.631	42.807
		48.540	35.623
		39.019	25.477

** A more detailed breakdown of operating results 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 and has presented results consistently in this way for the past 5 years.

(b) The Recurring Operational totals have been calculated before share based payment (“SBP”) expenses. Group SBP expenses recognised for the period was $7.602m (2008: $5.952m).

In the light of this resilient result, IRESS Directors declared a fully franked final dividend of 21.0 cents per share (2008: 19.0 cents) payable on 31 March 2010.

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Overall Group

IRESS Managing Director, Andrew Walsh said “IRESS’ financial performance underlines its resilience in light of difficult and turbulent market conditions. Following the high level of cancellations resulting from cost cutting and downsizing within the client base in late 2008 and early 2009, conditions quickly stabilised but remained cautious. Despite this, there has been client activity to seed new initiatives and reduce costs through technology which has seen emerging revenue growth in the second half. Together with cost management, the resulting second half EBITDA was slightly positive with a solid full year result for the group. Building on strong growth in the first half, our Canadian business has made an overweight contribution to this result, and although from a small base, our growth in South Africa is also strong on the back of technology upgrades.”

“Trading in the early months of 2010 has been pleasing and we continue to see opportunities for growth and support of IRESS in our role as an independent vendor with the benefits of scale. While initial results are positive, the timing of a full recovery in our mature businesses to precrisis growth levels remains difficult to predict. We continue to focus on growth initiatives through both M&A and organic opportunities, such as our expansion of financial markets and wealth management capability in Asia. Our technology, balance-sheet and in relative terms Australia’s strong macroeconomic position means we are well placed to explore and evaluate opportunities as they emerge both domestically and abroad. Specifically on financial outlook, assuming a period of positive but modest revenue growth post the events of 2009, we anticipate similar EBITDA for the next half, before costs in Asia.”

Financial Markets – Australia & New Zealand

The financial crisis resulted in possibly our most challenging trading conditions, seen by heightened screen cancellations during December 2008 and the first quarter of 2009, reducing to pre-crisis levels by the end of the second quarter. Cancellations were overwhelmingly due to client downsizing with negligible competitor impact. While subscriptions for new services continued throughout the period, they were at levels lower than pre-crisis, yet sufficient to offset cancellations; moving to very modest positive net revenue growth in the last quarter.

In this light the Financial Markets division performed well given the circumstances with revenue slightly down (-0.6%) for the full year against 2008 and flat (-0.1%) in the second half. With short-term cost reductions and positive impacts of some rearrangement to data supply during 2009, EBITDA was up 2.6% for the year and up 1.0% in the second half.

Financial Markets highlights:

• International market data now in IRESS with packages for end of day, delayed and live. All professional IRESS users have access to this data within existing arrangements.

• IOS+ implementations remain the focus for institutional trading as new opportunities emerge.

• IOS+ retail features in place for launch of a new trading platform based on webIRESS in Europe.

• Buyside IOS (EMS) available for global securities trading in addition to local IOS links and a range of buyside features.

• Continued success with our comprehensive portfolio product (IPS) with increased appeal from the inbuilt international securities pricing data.

• Multi-market trading products are already in use and awaiting issue of market licenses in Australia, and plan to be operational on day one. These include IOS+, FIX+, Operator Trading Workstation (OTW), and the IRESS Best Market Router (BMR).

Business Outlook:

The early months of 2010 have seen continued reduction in cancellations and positive net revenue growth. However, the timing of a full recovery to pre-crisis growth levels remains difficult to predict. Assuming a period of lower revenue growth, we anticipate similar levels of

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EBITDA in H1 2010. Additional opportunities exist depending on the timing and nature of new market licences.

Financial Markets - Canada

Canadian Financial Markets performed strongly through the crisis by more than offsetting client cancellations with revenue gains such that net revenue growth was 13.7% (CAD) over the full year and 4.6% (CAD) in the second half against the first half of 2009. While no less impacted by cancellations in early 2009, revenue increases reflect many client initiatives to grow and reduce costs by leveraging IRESS services, and this underlines our status as a dependable and responsive domestic vendor in Canada. When combined with cost stabilisation this growth has generated impressive EBITDA gains of 51.1% for the full year and 22.2% in the second half.

Key points:k

• Institutional order management project progressing well and on track for completion this year.

• Buyside IOS (EMS) available to meet demand in this important segment.

• Market data opportunity in early rollout phase and some positive opportunities in the retail advisory space.

• IRESS Best Market Router continues to play key role in Canadian multi-market environment by providing best price discovery, low-latency routing, and the adaptive algorithmic landscape.

Business Outlook:

The early months of 2010 have generated modest net revenue increases, which included a small price increase. While some volatility exists it remains difficult to predict the timing of precrisis levels of growth, yet with continuing improvement in market conditions and many product initiatives in play, we expect further positive growth through 2010. Costs remain at appropriate levels to sustain current product initiatives and medium term revenue growth, however, we will look to fund identified additional growth opportunities in Canada at the right time.

Financial Markets - Asia

In the second half of 2009 we announced our investment in the expansion of our financial markets capability in Asia. Good progress has been made since this time as we now look for opportunities to commercialise a working solution in the region.

Key points:

• Our expanded international market data range now available in IRESS with a focus on Asian exchanges and local requirements.

• Direct trading interface to Singapore now complete, with other exchanges underway.

• Appropriate networks and communications in place to service market data and trading.

• Multi-language support now in place for webIRESS and in progress for IRESS.

Business Outlook:

As flagged, our cost base will gradually build for the region in anticipation of revenue generation, such that the net cost of the Asian initiative for financial markets will be limited to $2.0m (AUD) in 2010. Growth opportunities in the region may include acquisitions where these make sense.

Wealth Management – Australia & New Zealand

The Wealth Management division in Australia and New Zealand has performed well in light of market conditions and some known contraction. Revenues grew by 5% for the full year and were slightly down (-0.8%) in the second half against the first half. The net result of short-term

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cost management and an increase in the cost base arising from recent acquisitions saw EBITDA increase by 10.9% for the year from 2008 and by 1.6% in the second half of 2009.

Key points:

• eApplication module now live with two major Australian lenders and remaining lenders underway, to facilitate real-time mortgage lodgement.

• SuperSolver proving popular as integrated superannuation product comparison tool.

• Extension of mortgage tools to NZ now complete and preparing for rollout.

• Demand for existing IRESS revenue management software increasing as more clients seek an integrated solution to provide insight to client value propositions.

• Project underway to respond to growing demand within retail broking for tighter CRM and IOS integration.

• Demand by clients for systems consolidation and a single vendor relationship.

Business Outlook:

Trading in early 2010 has continued to have a positive impact as many firms seek to grow and reduce costs using technology in a post crisis environment; therefore increasing demand for the efficiency our integrated and comprehensive solutions provide. Notwithstanding this, the segment finds itself subject to uncertainty amidst regulatory reviews and takeover speculation making levels of growth difficult to predict in the short-term. In light of this and previously advised client roll-off, we expect offsetting revenue growth to produce similar levels of EBITDA in the first half.

Wealth Management – South Africa

South Africa has performed well with the rollout of XPLAN technology supporting revenue growth to see a 14.3% (ZAR) increase in revenue over the full year from 2008. While measured from a small base, with relatively flat costs, this has seen an increase in EBITDA of 44.9% (ZAR) for the year, and 7.3% in the second half from the first.

Business Outlook:

We remain positive about the medium term growth of wealth management in South Africa, particularly as we see increasing demand for broader functionality within the XPLAN adviser desktop.

Wealth Management - Asia

The recently announced acquisition of SENTRYi provides a base from which to progress our wealth management business in Asia. The existing SENTRYi software capabilities will provide a complementary base for growth as we focus on the localisation of XPLAN functionality. While at an early stage, localisation of XPLAN for the region will include integration with platform providers, sourcing third party data, and specific development such as multi-language support.

Business Outlook:

The objective for the near term will be to focus on the immediate opportunities created through SENTRYi joining the IRESS group, including providing additional sales and support staff to continue growth of this channel, with a view to building revenues from current very modest levels. Like financial markets, this business will require funding support to grow the business beyond its current modest base, but will be controlled such that the net cost is limited to $1.0m (AUD) in 2010.

Board Succession

As previously announced, Mr Neil Hamilton who has been a director since 2000 and Chairman since 2001, will be stepping down from the Board at the Annual General Meeting in May 2010. It remains the Board’s intention to appoint Mr Peter Dunai as Chairman succeeding Mr Hamilton,

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with Mr Dunai continuing his involvement with the Company in a strategic development capacity. In anticipation of this change Ms Jenny Seabrook has been nominated to the role of Lead Independent Director, a position which becomes effective upon Mr Dunai assuming the chair.

For further information please contact:

Andrew Walsh Stu Bland Managing Director Chief Financial Officer (03) 9018 5800 (03) 9018 5800

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Detailed Results Analysis:	Financial Markets A&NZ (A$m) Financial Markets Canada (C$m) (c) Financial Markets Total (A$m) Wealth Mgt Services A&NZ (A$m) Wealth Mgt Services RSA (ZAR m)(c) Wealth Mgt Services Total (A$m) Asia (A$m)	Underlying Group (A$m) Strategic / Non - Operating Charges (A$m)	Underlying Group (A$m) Strategic / Non - Operating Charges (A$m)	Total (A$m)
Recurring Operational (a) Operating Rev 2009 2008 2007 EBITDA 2009 2008 2007 Profit before tax (b) 2009 2008 2007 Profit after Tax (b) 2009 2008 2007	99.095 19.667 121.198 41.291 44.244 48.077 0.202 99.689 17.297 118.895 39.306 38.711 44.953 - 89.558 10.777 101.556 28.800 24.575 32.913 - 56.635 6.243 63.655 16.929 14.536 19.161 (0.176) 55.167 4.131 59.753 15.260 10.027 16.738 - 49.119 (0.692) 48.373 10.941 10.539 12.710 - 55.151 5.308 61.117 14.240 13.519 16.316 (0.268) 52.541 3.140 56.026 12.439 9.345 13.817 - 46.576 (1.656) 44.755 9.644 10.375 11.386 - 38.330 3.689 42.477 9.897 9.395 11.340 (0.186) 36.516 2.182 38.938 8.645 6.494 9.602 - 32.370 (1.151) 31.105 6.703 7.211 7.914 -	169.477 - 163.848 - 134.469 - 82.640 - 76.491 - 61.083 - 77.165 (13.916) 69.843 (14.802) 56.141 (12.006) 53.631 (9.672) 48.540 (10.287)		169.477 163.848 134.469 82.640 76.491 61.083 63.249 55.041 44.135 43.959 38.253
		53.631
		48.540
		39.019	(8.344)	30.675
SBP & Non-Recurring: Share Based Pmts. 2009 2008 2007 Total Non-Rec Exp. Before Tax 2009 2008 2007	- - - - - - - - - - - - - - - - - - 0.018 (0.090) (0.083) (0.001) 0.124 0.285 0.012 0.073 (0.057) 0.009 (0.092) 0.137 (0.063) - (0.550) (0.051) (0.606) (0.474) 0.014 (0.474) -	(7.602) - (5.952) - (4.239) - 0.214 - (0.054) - (1.080) -		(7.602) (5.952) (4.239) 0.214 (0.054) (1.080)
Tax on SBP & Non Recurring items 2009 2008 2007				6.237 3.376 0.121
Reported: Profit after tax 2009 2008
				42.807
				35.623
2007				25.477

(a) More commentary on operating results, share based payment (“SBP”) expenses, non-recurring items and strategic charges are included in the accompanying slide presentation.

(b) The Recurring Operational totals have been calculated before SBP expenses as inter-period comparability is effected by changes in the vesting period of grants and changes in the after tax cost (following the introduction of the Employee Share Trust in May 2008).

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

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