JOYCE CORPORATION LTD — Earnings Release 2008

Feb 26, 2009

Media Release

Date 26 February 2009

JOYCE CORPORATION LTD. RESULTS FOR YEAR ENDED 31 DECEMBER 2008

Results

The Directors of Joyce Corporation Ltd. (ASX: JYC) today announced an underlying operating profit after tax (that is, excluding one off non-recurring items) for the six months ended 31 December 2008 of $1.096M This compared with $815K on a similar basis for the corresponding period the previous year.

The profit after tax and after one off items was $166K, which compares with the previous corresponding period of $1.428M.

One off items included legal fees related to the defence of a number of actions with some franchisees of $524k and this compared with the previous period of $89K. The Company has been successful in defending the first of these actions. The Directors remain confident of the Company’s position on the remaining actions.

Property valuations gain this year of $20K compared with the previous corresponding period of $553K.

Furthermore start up costs associated with expansion of the Company’s owned stores also had an influence on results.

The net assets per share of the Company on 31 December 2008 were $1.26 per share.

As previously announced Joyce Corporation Ltd has an Option Agreement for the sale of its Queensland property for $9 million which is subject to due diligence to be completed before 30 June 2009. If due diligence is accepted, the sale will be unconditional and unrecoverable deposits will ensue. The New South Wales property value has seen a reduction in value of $680K due to the softening of the industrial property market in the western suburbs of Sydney. The net effect on property values as at 31 December 2008 has seen an overall increase of $20K, which compares with the corresponding period last year of $553K.

Joyce Corporation Ltd’s main business is retailing through Bedshed Franchising Pty. Ltd., a wholly owned subsidiary. “Bedshed” is one of Australia’s largest specialty bedding and bedroom furniture retailers with 45 stores in Western Australia, Victoria, Queensland, South Australia and latterly New South Wales.

Performance from the Franchising division of Bedshed was strong, despite store sales revenue being negatively impacted by weakening consumer confidence as a direct effect of the global economic crisis. The improved result was driven by tight cost control.

The 6 month period saw the opening of 3 new company owned and operated Bedshed stores, 1 each in Western Australia, Queensland, and New South Wales. These stores had been committed to some time ago. Bedshed Franchising Pty. Ltd. also purchased the Bedshed Claremont store in Western Australia from a former franchisee.

Outlook

Joyce Corporation Ltd. expects the difficult economic conditions to continue for at least the remainder of calendar year 2009.

Bedshed Franchising Pty. Ltd. remains committed to developing a network of 80+ stores but has slowed down its growth plan in the short-term.

The company has seen a recent improvement in the overall profitability of Bedshed company stores as the stores begin to mature which bodes well for the future.

The prospective sale of the Queensland property will provide additional finances to fund growth and to underpin the Company and shareholders.

The Chairman, Mr. Dan Smetana, observed that the results, whilst disappointing, reflected the current economic environment which has impacted on the majority of businesses. The group’s investment properties still provide a strong asset base and scope for timely opportunity.

Profit Outlook

The underlying operating profit after tax (that is, excluding one off non-recurring items) is expected to increase this year compared to last year. However one off non-recurring items such as legal expenses and property valuations will have an impact on the final result.

Dividends

The dividend policy is currently under review.

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For further information, please contact: Mr D Smetana Chairman Joyce Corporation Ltd Mobile 0417 842 781