KORVEST LTD — Earnings Release 2009

Jan 27, 2009

ABN 20 007 698 106

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PRESS RELEASE

The Chairman, Mr Peter Stancliffe, today announced the following operating results for the 6 months ended 31[st] December 2008 for Korvest Ltd and its controlled entities.

	6 MONTHS TO 31/12/08 $’000	6 MONTHS TO 31/12/07 $’000	% CHANGE
Revenues	34,367	24,396	+ 40.8%
Operating Profit After Tax	2,921	2,345	+ 24.6%
Earnings per share (cents)	33.9	27.4	+ 23.7%
Dividends per share (cents)	17.0	14.0	+ 21.4%

Mr Stancliffe said that all Divisions of the Korvest group experienced strong and consistent growth during the half-year period. Project work was strong in all areas of the business and this was supported by continued growth in the more regular “day to day” business. The EzyStrut business achieved strong sales through the majority of the period and pleasingly the trend was consistent across the country. There were however signs of a softening in the market very late in the half year period and this is reflected in the current order book.

The Galvanising business grew in line with the strong conditions experienced in our key markets over the period. Productivity and process improvements made over the last 12-18 months enabled the plant to process 40% more tonnes than in the comparative period last year.

Indax, the walkway and handrail business, continued to focus on growing market share and its customer base across South Australia and where possible interstate. The investments made in equipment and people made a dramatic improvement and contributed to the very strong growth in the period for this Division. Good project work was won in Western Australia and we continued to build on our South Australian customer base as well. In light of our strong performances over this first half we are also now starting to see opportunities open up in the Eastern states for this Division. The order book for Indax is strong indicating that not all customers and projects are being delayed or cancelled in the current financial climate.

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DIVIDEND

The Directors announced an increased fully franked final dividend of 17.0 cents per share compared to 14.0 cents per share last year. The dividend will be paid on 6[th] March 2009. The record date is 20[th] February 2009.

OUTLOOK

We expect to finish the full year ahead of the results achieved to June 2008. It is difficult at the moment to predict market conditions over the second half as many customers are reassessing projects and investments.

P W STANCLIFFE CHAIRMAN

28 January 2009

For further information contact: ALEXANDER KACHELLEK (Managing Director)

Mobile 0423 847 627

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