IRESS LIMITED — Earnings Release 2011

Feb 23, 2011

24 February 2011

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

==> picture [114 x 38] intentionally omitted <==

ELECTRONIC LODGEMENT

Dear Sir or Madam

2010 Full Year Results – Appendix 4E

Please find attached a copy of the Appendix 4E on the Company’s results for the full-year ended 31 December 2010.

Yours sincerely

==> picture [168 x 34] intentionally omitted <==

Stuart Bland Company Secretary

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

==> picture [552 x 141] intentionally omitted <==

Appendix 4E Preliminary Final Report

.Rules 4.1, 4.3

Appendix 4E Preliminary final report

Name of entity

IRESS Market Technology Limited

ABN reference

47 060 313 359

1. Reporting periods

Financial year ended

(‘current period’)

31 December 2010

Financial year ended (‘previous corresponding period’) 31 December 2009

2. Results for announcement to the market

$A’000

Key Information	Current Period	Previous Corresponding Period	% Change Increase/(Decrease)	Amount Increase/(Decrease)
Revenue from ordinary activities	183,028	171,392	6.8%	11,636
Net profit/(loss) for the period attributable to members	50,479	42,807	17.9%	7,672
Dividends /distributions			Amount per security	Franked amount per security at 30% tax
Final Dividend Special Dividend	Record Date Both Payable	15 March 2011 15 March 2011 31 March 2011	24.0c 3.5c	15.84c 0.00c
Interim Dividend	Paid	30 Sept 2010	14.0c	14.0c
Supplementary Comments of any figures above: In respect of the financial year ended 31 December 2010, an interim dividend of 14.0 cents per share franked to 100% at 30% corporate tax rate was paid to the holders of fully paid ordinary shares on 30 September 2010. In respect of the financial year ended 31 December 2010, the Directors recommend a final dividend of 24.0 cents per share franked to 66% at 30% corporate tax rate to be paid to the holders of fully paid ordinary shares on 31 March 2011. The record date to participate in the final dividend is 15 March 2011. In addition, directors recommend a once off special unfranked dividend of 3.5 cents per share to be paid to the holders of fully paid ordinary shares on 31 March 2011. The record date to participate in the final dividend is 15 March 2011. In declaring the special dividend, directors have sought to broadly supplement the financial impact of the less than 100% franked 2010 final dividend.

For further information, please refer to the Audited Financial Statements for the year ended 31 December 2010.

3. Statement of Comprehensive Income

Please refer to the Audited Financial Statements for the year ended 31 December 2010.

4. Statement of Financial Position

Please refer to the Audited Financial Statements for the year ended 31 December 2010.

Appendix 4E Page 1

Appendix 4E Preliminary Final Report

5. Statement of Changes in Equity

Please refer to the Audited Financial Statements for the year ended 31 December 2010.

6. Statement of Cash Flows

Please refer to the Audited Financial Statements for the year ended 31 December 2010.

7. Dividends

7. Dividends
	Date paid/payable		Amount per security		Franked amount per security at 30% tax	Amount per security of foreign sourced dividend
Final dividend: Current year	31 March 2011			24.0c	15.84c	–
Previousyear	31 March 2010			21.0c	21.0c	–
Interim Dividend: Current year	30 September 2010			14.0c	14.0c	–
Previousyear	30 September 2009			13.0c	13.0c	–
Special Dividend: Currentyear	31 March 2011			3.5c	0.0c	–
Total dividend (distribution) per	security (interim, final plus special)				Currentyear	Previousyear
	+ Ordinary securities				41.4c	34.0c
	Preference + securities
Total dividend (distribution)paid/payable (interim plus final)
						Previous
					Current period	corresponding
					$A’000	period
						$A’000

			Previous
		Current period	corresponding
		$A’000	period
			$A’000
+Ordinary securities (each class separately)	Interim	17,642	16,096
	Final (a)	30,244	26,001
	Special	4,411	–
		52,297	42,097
Preference + securities (each class separately)	Interim	–	–
	Final	–	–
		–	–
Other equity instruments (each class separately)	Interim	–	–
	Final	–	–
		–	–
Total		52,297	42,096

(a) The current period final dividend amount has been calculated based on the number of shares on issue as at 31 December 2010. The previous corresponding period final divided amount has been updated to reflect the actual dividend paid.

8. Dividend Reinvestment plans

The +dividend or distribution plans shown below are in operation.

NIL

The last date(s) for receipt of election notices for the +dividend or distribution plans:

N/A

Appendix 4E Page 2

Appendix 4E Preliminary Final Report

9. Statement of Retained Earnings

Please refer to note 19 of the Audited Financial Statements for the year ended 31 December 2010.

10. NTA Backing

10. NTA Backing
	Current Period	Previous Corresponding Period
Net tangible asset backing per +ordinarysecurity ($)	83.20c	74.93c

11. Subsidiaries

Please refer to note 30 of the Audited Financial Statements for the year ended 31 December 2010.

12. Associates and Joint Ventures

N/A

13. Other Significant Information

Please refer to the Audited Financial Statements for the year ended 31 December 2010.

14. Foreign Entities

Please refer to note 30 of the Audited Financial Statements for the year ended 31 December 2010.

15. Commentary

15.1 Earnings per security

Please refer to note 5 of the Audited Financial Statements for the year ended 31 December 2010.

15.2 Returns to shareholders including distributions and buy backs

Please refer to the Audited Financial Statements for the year ended 31 December 2010.

Note 21 Dividends

Note 17 Issued capital

15.3 – 15.5 Significant features of operating performance

IRESS’ recurring subscription model continues to drive results and outlook. It is however not without its challenges.

During the year, the profitability of the consolidated entity was impacted by:

• Australia & New Zealand Financial Markets - Revenue $104.5m. (2009: $99.1m) up 5.5%; segment profits $58.9m (2009: $56.6m) up 4.0%. The emerging revenue growth observed in the latter part of 2009 continued across the product range in the first half of the year and early into the second half, but wasn’t sustained throughout the remaining period. With a gradual restoration of costs (post crisis) and some modest cost re-establishment during the later part of the year, there was a modest decline in margins from 57.1% to 56.3%.

• Canadian Financial Markets – Revenue $23.5m. (2009: $22.1m) up 6.3% (12.8% in CAD); segment profits $7.8m (2009: $7.0m) up 11.7% (18.9% in CAD). The segment produced strong revenue growth in the first half, with revenue up 10.3% (CAD) on the prior half, however cancellations late in the first half and difficult trading conditions in the second half moderated results. Segment profits also reflect some necessary cost re-establishment during the year.

• Asian Financial Markets – Revenue $0.6m. (2009: $0.2m); segment loss $(0.6)m (2009: $(0.2)m). This early phase opportunity continued to progress well as the business engaged with prospective clients, with the cost base gradually increasing during the year.

• Australia & New Zealand Wealth Management– Revenue $43.8m. (2009: $41.3m) up 6.0%; segment profits $18.6m (2009: $16.9m) up 10.0%. The business has performed well as it re-emerges from a cautious 2009 and entered a period of significant change for the industry and our clients. This has seen increased demand for our technology solutions driven by clients positioning themselves for growth, and for a future that demands efficiency and scale, segmented services to clients and additional compliance. Segment profits incorporate a gradual restoration of costs (post crisis), together with some necessary cost re-establishment during the later part of the year.

• South African Wealth Management – Revenue $7.1m. (2009: $6.8m) up 4.2% (7.0% in ZAR); segment profits $2.5m (2009: $2.2m) up 10.6% (13.8% in ZAR). The South African business has performed well over the period with a focus on XPLAN rollouts and responding to client requirements and opportunities. With modest cost increases, margins increased from 32.9% to 35.0%.

Appendix 4E Page 3

Appendix 4E Preliminary Final Report

• Asian Wealth Management – Revenue $0.3m and segment loss $(1.1)m. With the establishment of this segment at the beginning of 2010, focus has been on localisation of Xplan and engaging with prospective clients. The cost base was restructured mid way through the year to more efficiently target the opportunity with no material increase in the run rate, and is considered now more in line with the business’ requirements.

The reported net profit after tax was $50.5m, an 18.0% increase on reported profits for the same period last year. Impacting on comparability of results for 2010 and 2009 are:

• in 2009 there was a short period of respite from some third party data feed costs as arrangements were re-organised;

• ▪ following negligible salary increases in 2009, during 2010 there were catch-up salary increases, albeit not with a full year impact reflected in results;

• ▪ in 2010 short term incentives increased as a percentage of base wages to levels closer to those paid in 2008 which, together with headcount increases, resulted in an increase of $1.270m (22.3%). This increase needs to be considered recognising that in 2009 there was a $0.819m (12.6%) reduction in the short term incentives paid to staff;

• a $0.751m reduction in the provision for bad and doubtful debts in 2010;

• ▪ despite a 19.4% increase in the value of grants issued in 2010, share based payments expense decreased in 2010 by 9.2% (this is due to share based expenses being a function of prior period grants, the value of the instrument issued and its duration). It is anticipated the share based payments expense will revert to more historical levels in 2011;

• ▪ depreciation and amortisation declined by $5.951m (28.3%) primarily due to certain assets recognised on the acquisition of the company (typically computer software and referred to in management presentations as Strategic Charges) becoming fully written down, together with assets such as major leasehold improvements and related furniture (associated with the Sydney and Melbourne office relocations in 2007) becoming fully written down during the year;

• ▪ interest income increased by $1.808m primarily from increased average cash holdings during the year; ▪ the effective income tax rate increased from 23.4% to 25.6% primarily due to the recognition in 2009 of tax losses associated with our Canadian operations. Income tax expense in 2010 continued to reflect the overlap of tax deductions arising from the transition of share grants from performance rights to deferred shares. It is anticipated the impact of this transition is substantially complete by 31 December 2010, with lesser effects on tax expense anticipated in the future; and

• ▪ the collective impact of these changes was an increase in basic EPS from 34.784 cents per share to 40.335 cents per share, an increase of 16.0%.

15.6 Other factors which have affected or likely to affect the results

Please refer to the Audited Financial Statements for the year ended 31 December 2010.

16. Compliance Statement

This report should be read in conjunction with the attached Audited Financial Statements for the year ended 31 December 2010.

Sign here: (Company Secretary)

Date: 24 February 2011

Print name: STUART BLAND

Appendix 4E Page 4