JCURVE SOLUTIONS LTD — Interim / Quarterly Report 2010

Feb 24, 2010

Stratatel Limited ABN 63 088 257 729

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Level 4 22 Atchison Street St Leonards NSW 2065

Companies Announcement Office Australian Securities Exchange Limited Exchange Centre Level 4, 20 Bridge Street Sydney NSW 2000

[T] +61 2 9467 9200 [F] +61 2 9467 9201 [W] stratatel.com.au

25 February 2010

HALF YEAR RESULTS AND OUTLOOK

STRATATEL ACHIEVES STRONG REVENUE GROWTH AND INVESTS FOR THE FUTURE

Highlights:

• Revenue of $6.09 million (up 43% on the prior corresponding period) and EBITDA of $0.63 million (down 26% on the prior corresponding period)

• Strong cash position of $1.43 million as at 31 December 2009

• Continued investment in business development for the future

• Interim dividend of 0.13 cents per ordinary share

• Completed acquisition of Stratatel Resource and achieved IBM Premier Business Partner status

• Positive full year and medium term outlook

Results For Announcement To The Market:

Results For Announcement To The Market:
	Half Year ended 31 December 2009 $	Percentage increase/(decrease) over previous corresponding period1
Revenue from ordinary activities	6,091,075	43%
Earnings before interest, taxation, depreciation and amortisation (EBITDA)	631,421	(26%)
Profit from ordinary activities after tax attributable to members	184,517	(77%)
Net profit for the period attributable to members	184,517	(77%)
1The previous corresponding period is the half year ended 31 December 2008.

Dividends:

The Company is pleased to announce a 0.13 cents per share interim unfranked dividend for the 6 months ended 31 December 2009. The Company remains committed to the payment of regular dividends to shareholders.

shareholders.
	Amount per Security	Franked amount per Security
Interim Dividend– Half Yearended 31 December 2009	0.13 cents	Nil
Final Dividend– Yearended 30 June2009	0.25 cents	Nil
RecordDatefordetermining entitlement toInterim Dividend		24 March 2010
Last datefor receipt ofelection noticefortheDividendReinvestmentPlan		24 March 2010
DateInterim Dividendis payable		14 April 2010

Dividend Reinvestment Plan:

The Company operates a Dividend Reinvestment Plan which allows eligible shareholders to elect to invest dividends in ordinary shares which will rank equally with the Company’s ordinary shares currently on issue.

Shareholder wanting to participate in the Dividend Reinvestment Plan must provide notification to the Company’s share registry, Computershare, prior to 5pm (WST) on the 24 March 2010. This notification can be provided online or by requesting a DRP Notice from the share registry on 1300 557 010.

Net Tangible Assets:

Net Tangible Assets:
	31 December 2009	31 December 2008
Net tangible assets perordinary share	1.2cents	1.2cents

Explanation of Result:

Revenue for the six months to 31 December 2009 was $6.1 million, an increase of 43% over the previous corresponding period. The increase in revenue has been driven from the acquisition in July 2009 of the Stratatel Resource business which provides IBM software and licensing solutions to a range of corporate clients. Revenues from the Expense Management division have been in line with expectations, underpinned by contracted and solid annuity streams.

Stratatel has a solid balance sheet position with no debt and cash of $1.4 million as at 31 December 2009. The strong performance in revenue and continued positive earnings reaffirms the Company’s strategy of building a base of recurrent revenues to underpin stable long term business growth. The Company continues to actively pursue acquisitions that are earnings per share accretive

EBITDA and NPAT for the period were $631,421 and $184,517 respectively. The decrease in EBITDA from the prior period has been a direct result of the decision by the Company to invest in sales, marketing and technical resources to grow revenue in order to achieve greater scale in the Stratatel business. This decision is aimed at increasing future earnings for the benefit of all shareholders.

The additional sales and marketing expenditure has been primarily invested within Stratatel Resource in line with the Company’s strategy to grow this business through rolling out its IBM products and software solutions across Australia. Whilst the increased expenditure has resulted in a decrease in earnings for the current period, the Company expects this investment will translate into future revenue and earnings growth in the year ahead. In the 6 months ended 31 December 2009, under Stratatel ownership, the Resource business has already achieved the entire revenue of its previous full year. Stratatel Resource was also awarded Premier IBM Business Partner status during the period.

During the period the Company also launched its new softlogmobile technology which allows for the capture, recording and allocation of billable time and calls to and from mobile phones. Stratatel is now actively promoting the product to legal firms across Australia. An uplift in sales momentum for FleetManager through our channel partner, Optus resulted in additional sales during the period and a growing pipeline of opportunities.

Net profit after tax for the period was impacted by an additional depreciation and amortisation charge of $202,649. In the period ending 31 December 2008, previously unrecognised deferred tax assets were recognised on carried forward losses, thereby reducing the tax expense for this period. The relatively higher income tax expense in the current period has resulted as all the deferred tax assets relating to carried forward losses were recognised at 30 June 2009. These deferred tax assets are available indefinitely for offset against future taxable profits in the companies in which the losses arose.

Stratatel remains committed to delivering continued returns to shareholders through dividend payments, with the maximum dividend possible being distributed to shareholders from current period profits. The decrease in the dividend per share is reflective of the decreased profit available for distribution, the increase in shares on issue following the entitlement issue and the increased amortisation charge recognised during the period.

Commenting on the half year results Managing Director, Mike Fairclough said:

“I am very pleased with the growth in revenues achieved in the first half of the year and whilst earnings have decreased this has been the result of a strategic decision by the Company to invest additional funds into business development in order to grow the Company and as a result I expect to see improved earnings and revenue growth in the year ahead. The Company is in great shape and poised to deliver increased returns to shareholders in the medium term.

We have also re-aligned the focus of the sales team within the Expense Management division aimed at ensuring our sales dollars spend is targeted to optimise the probability of winning new and larger contracts to further drive revenue growth.

The Stratatel Resource business acquired during the period has been a positive investment and represents an exciting growth opportunity. The achievement of Premier IBM Business Partner status was a significant milestone for the Company and we are now focussed on continuing to grow the Stratatel Resource business across Australia, with the expansion into Victoria to be effective 1 March 2010.

I would like to thank shareholders for the strong support received for our entitlement issue during the period which raised $1.15 million.”

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Mike Fairclough Managing Director

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Stratatel Limited (ABN 63 088 257 729)

Half Year Report 31 December 2009

Stratatel Limited

Contents	Page
Directors’ Report	1
Auditor’s Independence Declaration	2
Condensed Consolidated Statement of Comprehensive Income	3
Condensed Consolidated Statement of Financial Position	4
Condensed Consolidated Statement of Changes in Equity	5
Condensed Consolidated Statement of Cash Flows	6
Notes to the Consolidated Financial Statements	7
Directors’ Declaration	11
Independent Auditor’s Review Report	12

The information contained in the half year financial report should be read in conjunction with the Company’s Annual Financial Report for the year ended 30 June 2009.

Stratatel Limited

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DIRECTORS’ REPORT

Your directors submit the financial report of the consolidated entity for the half year ended 31 December 2009. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

The names of directors who held office during or since the end of the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.

Ian Alexander Macliver	Chairman
Michael James Fairclough	Managing Director
Geoffrey Ernest Lambert	Non-Executive Director
Graham Baillie	Non-Executive Director

Review of Operations

• Revenue from ordinary activities increased by 43% or $1.9m, up from $4.2m the previous corresponding period to $6.1m this period;

• The solid increase in revenue reaffirms the quality of the Company’s Application Service Provision (ASP), or Software As A Service (SaaS) business model; that of strong long-term recurrent revenue contracts.

Auditor’s Independence Declaration

Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the company with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on page 2 and forms part of this directors’ report for the half-year ended 31 December 2009.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306 (3) of the Corporations Act 2001.

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Mike Fairclough Managing Director Dated this 25th day of February 2010.

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AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Stratatel Limited for the half-year ended 31 December 2009, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) any applicable code of professional conduct in relation to the review.

This declaration is in respect of Stratatel Limited and the entities it controlled during the period.

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Perth, Western Australia 25 February 2010

W M CLARK Partner, HLB Mann Judd

HLB Mann Judd (WA Partnership) ABN 22 193 232 714 Level 4 130 Stirling Street Perth 6000 PO Box 8124 Perth BC 6849 Western Australia. Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation HLB Mann Judd (WA Partnership) is a member of International, a world-wide organisation of accounting firms and business advisers

International, a world-wide organisation of accounting firms and business advisers

Stratatel Limited

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2009

Notes Revenue 2 Cost of goods sold Employee benefits expense Other employee related expense Communications expense Advertising & marketing Professional fees Occupation expense Listing expense Depreciation and amortisation Finance costs Other expenses Profit before income tax Income tax (expense)/benefit Net Profit for the period Other comprehensive income Total comprehensive income for the period Earnings per share Basic earnings per share (cents per share) 5 Diluted earnings per share (cents per share) 5	2009 $ 2008 $ 6,091,075 4,252,210 (1,848,232) (285,789) (2,350,239) (1,862,501) (384,593) (348,309) (79,075) (89,011) (55,630) (22,991) (288,104) (310,677) (249,290) (271,744) (32,290) (32,999) (332,876) (130,227) (3) (4,139) (154,029) (142,580)
	316,714 751,243 (132,196) 69,275
	184,518 820,518
	- -
	184,518 820,518
	0.15 0.73 0.15 0.73

The accompanying notes form part of these financial statements

Stratatel Limited

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2009

Notes Assets Current Assets Cash and cash equivalents Trade and other receivables Inventory Other current assets Total Current Assets Non-Current Assets Property, plant and equipment Development Intangible assets Other receivables Other financial assets Deferred tax asset Total Non-Current Assets Total Assets Liabilities Current Liabilities Trade and other payables Current tax liabilities Total Current Liabilities Non-Current Liabilities Provisions Total Non-Current Liabilities Total Liabilities Net Assets Equity Issued capital 6 Reserves Accumulated losses Total Equity	31 Dec 2009 $ 30 Jun 2009 $ 1,435,456 1,300,359 2,848,789 1,310,689 45,064 50,180 150,648 54,285
	4,479,957 2,715,513
	212,776 227,601 2,231,001 2,097,445 4,648,424 4,123,785 24,276 28,118 103,529 105,639 340,663 345,487
	7,560,669 6,928,075
	12,040,626 9,643,588
	3,193,279 1,993,248 167,322 70,606
	3,360,601 2,063,854
	122,574 65,233
	122,574 65,233
	3,483,175 2,129,087
	8,557,451 7,514,501
	9,676,598 8,568,924 150,871 111,164 (1,270,018) (1,165,587)
	8,557,451 7,514,501

The accompanying notes form part of these financial statements

Stratatel Limited

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2009

Balance as at 1 July 2008 Total comprehensive income for the period Dividend payment Recognition of equity based payment Shares issued Balance as at 31 December 2008 Balance as at 1 July 2009 Total comprehensive income for the period Dividend payment Recognition of equity based payment Shares issued Balance as at 31 December 2009	Balance as at 1 July 2008 Total comprehensive income for the period Dividend payment Recognition of equity based payment Shares issued Balance as at 31 December 2008 Balance as at 1 July 2009 Total comprehensive income for the period Dividend payment Recognition of equity based payment Shares issued Balance as at 31 December 2009	Issued Capital Accumulated Losses $ $	Issued Capital Accumulated Losses $ $	Reserves Total Equity $ $
		8,215,208 (1,727,927) - 820,518 - (282,071) - - 256,403 -		107,769 6,595,050 - 820,518 - (282,071) 3,395 3,395 - 256,403
		8,471,611 (1,189,480)		111,164 7,393,295
		Issued Capital Accumulated Losses $ $		Reserves Total Equity $ $ 111,164 7,514,501 - 184,518 - (288,949) 39,707 39,707 - 1,107,674 150,871 8,557,451
		8,568,924 (1,165,587) - 184,518 - (288,949) - - 1,107,674 -
		9,676,598 (1,270,018)

The accompanying notes form part of these financial statements

Stratatel Limited

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2009

Notes Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Finance costs Income tax paid Net cash provided by operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of non-current assets Payments for subsidiaries, net of cash acquired 7 Net cash used in investing activities Cash flows from financing activities Proceeds on share issue Dividends paid Net cash used in financing activities Net increase in cash held Cash and cash equivalents at 1 July 2009 Cash at 31 December 2009	2009 $ 2008 $ Inflows/(Outflows) 4,464,749 4,926,624 (4,144,278) (3,786,374) 17,707 37,259 (3) (4,139) (30,656) -
	307,519 1,173,370
	(42,051) (74,603) (395,385) (389,433) (554,721) (400,000)
	(992,157) (864,036)
	1,036,391 - (216,656) (207,955)
	819,735 (207,955)
	135,097 101,379 1,300,359 1,066,455
	1,435,456 1,167,834

The accompanying notes form part of these financial statements

Stratatel Limited

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2009

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

The interim consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134: Interim Financial Reporting, accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

The half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the group as in the full financial report.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2009 and any public announcements made by Stratatel Limited and its subsidiaries during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules.

Apart from the changes noted below, the accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the company’s 2009 annual financial report for the financial year ended 30 June 2009.

Basis of preparation

The interim report has been prepared on a historical cost basis, except for land and buildings, derivative financial instruments and available-for-sale financial assets which are measured at fair value. Cost is based on the fair value of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

For the purpose of preparing the half-year report, the half-year has been treated as a discrete reporting period.

Adoption of new and revised Accounting Standards

In the half-year ended 31 December 2009, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2009.

During the current period, certain accounting policies have changed as a result of new or revised accounting standards which became operative for the annual reporting period commencing on 1 July 2009.

The affected policies and standards are:

• Business combinations – revised AASB 3 Business Combinations

• Segment reporting – new AASB 8 Operating Segments

Business Combinations

AASB 3 (issued March 2008) is mandatory for annual reporting periods beginning on or after 1 July 2009. The standard applies prospectively in that no adjustments of prior business combinations with acquisition dates before the application date are required.

All payments to purchase a business are now recorded at fair value at the acquisition date, with contingent payments included at their respective fair values. Under the Group’s previous policy, contingent payments were only recognised when the payments were probable and could be measured reliably and were accounted for as an adjustment to the cost of the acquisition.

Acquisition-related costs are expensed as incurred. Previously, they were recognised as part of the cost of acquisition and therefore included in goodwill.

Segment Reporting

The Consolidated Group has adopted AASB 8 Operating Reporting Segments which requires operating segments to be identified on the basis of internal reports about components of the Group that are reviewed by the chief operating decision maker in order to allocate resources to the segment and assess its performance. The chief operating decisionmaker has been identified as the Managing Director of Stratatel Limited. These disclosure requirements are contained in Note 4.

Stratatel Limited

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2009

NOTE 2: REVENUE

(a) Revenue Operating activities Consultancy income MobileFleet®income FleetManager®– mobiles Infratel income PoolCarManager income Development income OnTrac income Softlog sales income Softlog maintenance income Phoneware installation income Phoneware CADS income Phoneware vendor provided income Phoneware Octel income Services – Lotus New Licences IBM Licence Renewals IBM Interest income Non-Operating activities Other income (b) Specific Expenses Interest expense Depreciation of non-current assets Operating lease rental expense: minimum lease payments	31 Dec 2009 $ 31 Dec 2008 $
	9,555 2,160 631,068 758,944 915,450 576,399 - 29,640 10,876 11,533 1,800 21,244 96,951 130,350 509,059 647,757 566,527 531,646 19,430 6,789 1,141,672 1,337,524 68,425 70,099 62,914 92,334 352,259 - 386,450 - 1,289,542 - 18,171 30,916 10,926 4,875
	6,091,075 4,252,210
	3 4,139 56,876 38,403 200,249 196,777

NOTE 3: DIVIDENDS PAID AND PROPOSED

Dividends Paid

The final unfranked dividend of 0.25 cents per fully paid ordinary share declared for the year ended 30 June 2009 was paid on 15 October 2009. The total dividend paid was $288,949.

Dividends Declared

An interim unfranked dividend of 0.13 cents per fully paid ordinary share has been declared by the directors of Stratatel Limited, scheduled to be paid to shareholders on 14 April 2010. As this dividend was declared after the period end it has not been included as a liability in these financial statements. The total estimated dividend to be paid is $181,666.

Stratatel Limited

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2009

NOTE 4: SEGMENT REPORTING

The Group has adopted AASB 8 Operating Reporting Segments which requires operating segments to be identified on the basis of internal reports about components of the Group that are reviewed by the chief operating decision maker in order to allocate resources to the segment and assess its performance. The Managing Director of Stratatel Limited reviews internal reports prepared as consolidated financial statements and strategic decisions of the company are determined upon analysis of these internal reports. The company operates predominantly in one business and geographical segment being the software development and software solutions industry providing services for corporate and government clientele throughout Australia. Stratatel Limited and controlled entities operate under the Software As A Service (SaaS) business model. Accordingly, under the ‘management approach’ outlined only one operating segment has been identified and no further disclosure is required in the notes to the consolidated financial statements.

NOTE 5: EARNINGS PER SHARE

Earnings used for calculation of basic and diluted earnings per share Profit from operations Weighted average number of shares Weighted average number of shares used in the calculation of basic EPS Weighted average number of options on issue Weighted average number of shares used in the calculation of diluted EPS Basic earnings per share (cents per share) Diluted earnings per share (cents per share) NOTE 6: ISSUED CAPITAL Ordinary shares issued and fully paid Movements in ordinary shares on issue At 1 July 2009 Issued on 8 October 2009 pursuant to the Stratatel Rights Issue Issued on 14 October 2009 pursuant to the Stratatel Rights Issue Shortfall Allotment Issued on 15 October 2009 pursuant to the Stratatel Dividend Reinvestment Plan At 31 December 2009	31 Dec 2009 $ 31 Dec 2008 $
	184,518 820,518
	No. No
	126,605,793 112,351,008 - -
	126,605,793 112,351,008
	0.15 0.73 0.15 0.73
	31 Dec 2009 $ 30 Jun 2009 $
	9,676,598 8,568,924
	No. $
	115,579,309 8,568,924 20,159,145 974,824 2,956,716 63,264 1,048,271 69,586
	139,743,441 9,676,598

Stratatel Limited

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2009

NOTE 7: ACQUISITION OF SUBSIDIARY

Stratatel Limited acquired 100% of the business and assets of Resource Systems & Services Pty Ltd through its wholly owned subsidiary Card Manager Pty Ltd (re-named Resource Systems Pty Ltd trading as Stratatel Resource) on 1 July 2009 for total cash consideration of $408,584 to be paid in eight monthly instalments from the Company’s existing cash reserves.

The net assets acquired in the business combination at the date of acquisition, and the goodwill arising, are as follows:

Details of the acquisition are as follows: Consideration Cash and cash equivalents paid to date Amount payable at reporting date Amount paid Fair value of net assets acquired Prepayments Unearned Income Provisions Net assets acquired Goodwill arising on acquisition	31 Dec 2009 $
	354,292 54,292
	408,584
	2,493 (102,823) (28,228)
	(128,558) 537,142
	408,584

The assets and liabilities arising from the acquisition are recognised at fair value, which are equal to their carrying value at acquisition date. Acquisition related costs of $1,898 are included in professional fees in the statement of comprehensive income.

NOTE 8: CONTINGENT LIABILITIES

There has been no change in contingent liabilities since the last annual reporting date.

Legal claims

As disclosed in the 2009 Annual Financial Report there is one current employee claim regarding post employment remuneration for which Stratatel may be required to expend funds. Stratatel is defending the claim and the case is continuing. Currently it is not possible to estimate the amounts of any eventual payments, which may be required in relation to this claim.

NOTE 9: EVENTS SUBSEQUENT TO REPORTING DATE

There have been no significant events subsequent to the reporting date.

Stratatel Limited

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DIRECTORS’ DECLARATION

The directors of the company declare that:

1. The financial statements and notes thereto, as set out on pages 3 to 10:

2. a. comply with Accounting Standard AASB 134 “Interim Financial Reporting” and the Corporations Regulations; and

3. b. give a true and fair view of the consolidated entity’s financial position as at 31 December 2009 and of its performance for the half-year then ended.

4. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is signed in accordance with a resolution of the Board of Directors made pursuant to s.303 (5) of the Corporations Act 2001.

Mike Fairclough

Managing Director

Dated this 25th day of February 2010

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of STRATATEL LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report, which comprises the condensed consolidated statement of financial position as at 31 December 2009, the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity, condensed consolidated statement of cash flows and notes to the financial statements for the half-year ended on that date, and the directors’ declaration, of Stratatel Limited and the entities it controlled during the half-year ended 31 December 2009 (“consolidated entity”).

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

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 Interim and Other Financial Reports Performed by the Independent Auditor of the Entity , 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 consolidated entity’s financial position as at 31 December 2009 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 Stratatel Limited, 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.

HLB Mann Judd (WA Partnership) ABN 22 193 232 714

Level 4 130 Stirling Street Perth 6000 PO Box 8124 Perth BC 6849 Western Australia. Telephone +61 (08) 9227 7500. Fax +61 (08) 9227 7533. Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation

HLB Mann Judd (WA Partnership) is a member of International, a world-wide organisation of accounting firms and business advisers

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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 Stratatel Limited is not in accordance with the Corporations Act 2001 , including:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2009 and of its performance for the half-year ended on that date; and

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

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HLB MANN JUDD Chartered Accountants

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Perth, Western Australia 25 February 2010

W M CLARK Partner