MPR AUSTRALIA LIMITED — Interim / Quarterly Report 2012

Feb 20, 2012

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A S X L I S T I N G R U L E S A P P E N D I X 4 D

Tag Pacific Limited Results for Announcement to the Market for the period ended 31 December 2011

Tag Pacific Limited announces the following results for the Company and its controlled entities for the half year ended 31 December 2011. The results have been subject to review by the Company’s external auditor.

Results for Announcement to the Market

Results for Announcement to the Market
	Six months to	Six months to
	31 December 2011	31 December 2010	Change
	A$’000	A$’000	%
Revenue from ordinary activities	38,055	36,881	3
Other income/(loss)	3,137	(1,040)	402
Profit/(loss) after tax attributable to members	3,967	(142)	2,894
Netprofit/(loss)for theperiod attributable to members	3,967	(142)	2,894

Other income/(loss) during the period is comprised of changes in the fair value of listed investments, realised gains arising from the sale of a listed investment and an equity accounted investment during the period.

Dividends

A dividend of 0.75 cents per share (totalling $529,552) franked to 100% at the corporate income tax rate of 30% was declared on 29 August 2011 and paid on 5 October 2011.

A special dividend of 0.50 cents per share (totalling $356,786) franked to 100% at the corporate income tax rate of 30% has been declared with a record date of 2 March 2012 and a payment date of 26 March 2012.

The Tag Pacific Limited Dividend Reinvestment Plan (‘DRP‘) will operate in relation to the dividend to be paid on 26 March 2012. The last election date for participation in the DRP is 2 March 2012. Shares issued under the DRP will be issued at an issue price to be determined by the directors in accordance with the terms of the DRP and will rank equally in all respects from the date of allotment with the Company’s fully paid ordinary shares.

Net Tangible Assets per Share

Net tangible assets per share as at 31 December 2011 was 35.1 cents (30 June 2011: 30.6 cents per share).

Details of entities over which control has been gained or lost during the period

On 15 November 2011 MPower Business Services Pty Limited was incorporated as a wholly owned subsidiary of MPower Group Pty Limited (59.3% owned).

Details of Associates and Joint Venture Entities

Details of Associates and Joint	Venture Entities
Name of Entity	Percentage	Held (%)	Share of Net	(Loss)/Profit (A$’000)
	Current Period	Previous Period	Current Period	Previous Period
Unique World GroupPtyLtd	Nil	37.9	(147)	196

The equity accounted investment in Unique World Group Pty Ltd was sold during the period yielding a net gain on disposal of $3,029,144.

For further information please see the attached Half Year Financial Report.

Tag Pacific Limited ABN 73 009 485 625

Half Year Financial Report 31 December 2011

Tag Pacific Limited Half Year Financial Report 31 December 2011

DIRECTORS’ REPORT

The directors submit the financial report of Tag Pacific Limited and its controlled entities (the Group) for the half year ended 31 December 2011. 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 the half year and until the date of this report are as follows. Directors were in office during and since the end of the half year unless otherwise stated:

Peter Wise Gary Cohen Robert Constable Robert Moran Richard Peterson Gary Weiss

Review of Operations

The Group recorded a net profit after providing for income tax and eliminating non-controlling interests of $3,966,950 for the half year ended 31 December 2011 (31 December 2010: net loss of $142,197). Overall the results from the operating subsidiaries within the Group were positive notwithstanding the uncertain economic conditions which prevailed during the period.

The Group’s investment in iSoft Group Limited was sold on 18 July 2011 for $1,838,875 resulting in a net realised gain of $108,169 (31 December 2010: fair value loss of $1,049,241).

The Group’s equity accounted investment in Unique World Group Pty Limited was sold on 2 December 2011 resulting in a net realised gain of $3,029,144; an equity accounted loss of $146,748 for the period and fee income of $197,897 (2010: equity accounted income of $196,356).

Dividends Paid or Recommended

A dividend of 0.75 cents per share (totalling $529,552) franked to 100% at the corporate income tax rate of 30% was declared on 29 August 2011 and paid to the holders of fully paid ordinary shares on 5 October 2011 (2010: $nil). A special dividend of 0.50 cents per share (totalling $356,786) franked to 100% at the corporate income tax rate of 30% has been declared with a record date of 2 March 2012 and a payment date of 26 March 2012 (2010: no dividend declared).

Rounding off of Amounts

The company is a company of the kind referred to in ASIC Class Order 98/0100, dated 10 July 1998, and in accordance with that Class Order amounts in the directors’ report and the half year financial report are rounded off to the nearest thousand dollars, unless otherwise indicated.

Auditor’s Independence Declaration

We have received an independence declaration from our auditors, Deloitte Touche Tohmatsu, under section 307C of the Corporations Act 2001 a copy of which is attached on page 2 of the half year financial report.

Signed in accordance with a resolution of directors made pursuant to section 306(3) of the Corporations Act 2001 .

On behalf of the directors

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……………………………..

Peter Wise Chairman Sydney, 21 February 2012

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Tag Pacific Limited Half Year Financial Report 31 December 2011

TAG PACIFIC LIMITED AND CONTROLLED ENTITIES Condensed Consolidated Income Statement For the half year ended 31 December 2011

Note Continuing operations Revenue 2 Other income/(loss) 2, 9 Cost of sales Employee benefits expense Depreciation and amortisation expense Finance costs Other expenses 3 Share of (loss)/profit of associates 9 Profit before tax Income tax expense Profit for the period from continuing operations Discontinued operations Profit/(Loss) for the period from discontinued operations Profit for the period Profit/(Loss) attributable to: Owners of the company Non-controlling interest Earnings per share From continuing and discontinued operations: Basic (cents per share) Diluted (cents per share) From continuing operations: Basic (cents per share) Diluted (cents per share)	Consolidated Half Year Ended 31 Dec 2011 31 Dec 2010 A$'000 A$'000
	38,055 36,881 3,137 (1,040) (24,969) (27,040) (7,560) (6,113) (225) (161) (276) (161) (2,343) (1,448) (147) 196
	5,672 1,114 (801) (401)
	4,871 713
	10 (89)
	4,881 624
	3,967 (142) 914 766
	4,881 624
	5.6 (0.2) 5.5 (0.2) 5.6 (0.1) 5.5 (0.1)

The Condensed Consolidated Income Statement should be read in conjunction with the attached notes.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

TAG PACIFIC LIMITED AND CONTROLLED ENTITIES

Condensed Consolidated Statement of Comprehensive Income For the half year ended 31 December 2011

Note Profit for the period Other comprehensive income Exchange differences arising on translation of foreign operations Gain/(Loss) on cash flow hedges taken to equity Net gain on revaluation of land and buildings 7 Income tax relating to components of other comprehensive income Other comprehensive profit for the period (net of tax) Total comprehensive income for the period Total comprehensive income/(loss) attributable to: Owners of the company Non-controlling interest	Consolidated Half Year Ended 31 Dec 2011 31 Dec 2010 A$'000 A$'000
	4,881 624 7 (155) 44 (499) - 788 - 21
	51 155
	4,932 779
	4,005 (133) 927 912
	4,932 779

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the attached notes.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

TAG PACIFIC LIMITED AND CONTROLLED ENTITIES Condensed Consolidated Statement of Financial Position As at 31 December 2011

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Investments in associates 9 Other financial assets Property, plant and equipment 7 Deferred tax assets Intangible assets 8 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Borrowings Current tax liabilities Provisions Other liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Borrowings Provisions Other liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 5 Reserves Retained earnings Equity attributable to owners of the company Non-controlling interest TOTAL EQUITY	Consolidated As at As at 31 Dec 2011 30 Jun 2011 A$'000 A$'000
	20,051 11,346 12,480 22,826 13,926 16,021 2,729 2,008
	49,186 52,201
	- 2,442 17 1,748 3,492 3,404 4,322 4,293 3,257 2,998
	11,088 14,885
	60,274 67,086
	9,401 20,124 6,086 6,088 878 1,950 2,165 1,968 2,390 1,461
	20,920 31,591
	2,155 2,396 192 197 273 481
	2,620 3,074
	23,540 34,665
	36,734 32,421
	16,594 16,477 787 745 9,618 6,181
	26,999 23,403 9,735 9,018
	36,734 32,421

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the attached notes.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

TAG PACIFIC LIMITED AND CONTROLLED ENTITIES Condensed Consolidated Statement of Changes in Equity For the half year ended 31 December 2011

Consolidated Balance at 1 July 2010 Profit for the period Other comprehensive income Exchange differences arising on translation of foreign operations Loss on cash flow hedge taken to equity Net gain on revaluation of land and buildings Income tax on other comprehensive income Total comprehensive income/(loss) for the period Payment of dividends Balance at 31 December 2010 Balance at 1 July 2011 Profit for the period Other comprehensive income Exchange differences arising on translation of foreign operations Gain on cash flow hedge taken to equity Income tax on other comprehensive income Total comprehensive income for the period Recognition of share based payments Issue of shares under dividend reinvestment plan Payment of dividends Balance at 31 December 2011	Issued Capital A$’000 Retained earnings A$’000 Capital Reserve A$’000 Foreign Exchange Translation Reserve A$’000 Revaluation Reserve A$’000 Share Option Reserve A$’000 Cash Flow Hedge Reserve A$’000 Attributable to owners of the parent entity A$’000 Non- Controlling Interest A$’000 Total A$’000 16,477 2,553 658 (276) - 190 - 19,602 6,498 26,100
	- (142) - - - - - (142) 766 624 - - - (91) - - - (91) (64) (155) - - - - - - (290) (290) (209) (499) - - - - 430 - - 430 358 788 - - - - (129) - 89 (40) 61 21
	- (142) - (91) 301 - (201) (133) 912 779 - - - - - - - - (251) (251)
	16,477 2,411 658 (367) 301 190 (201) 19,469 7,159 26,628
	16,477 6,181 658 (372) 301 213 (55) 23,403 9,018 32,421
	- 3,967 - - - - - 3,967 914 4,881 - - - 11 - - - 11 (4) 7 - - - - - 27 27 17 44 - - - - - - - - - -
	- 3,967 - 11 - - 27 4,005 927 4,932 - - - - - 4 - 4 - 4 117 - - - - - 117 - 117 - (530) - - - - (530) (210) (740)
	16,594 9,618 658 (361) 301 217 (28) 26,999 9,735 36,734

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the attached notes.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

TAG PACIFIC LIMITED AND CONTROLLED ENTITIES Condensed Consolidated Statement of Cash Flows For the half year ended 31 December 2011

Note Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Interest and other costs of finance paid Income tax paid Net cash provided by/(used in) operating activities Cash flows from investing activities Payment for property, plant and equipment Payment for product development costs Proceeds from sale of financial assets designated as at fair value through profit or loss Dividends received from equity accounted investments Net proceeds from sale of interests in associates 9 Net cash paid upon acquisition of subsidiary Proceeds from sale of property, plant and equipment Net cash provided by/(used in) investing activities Cash flows from financing activities Dividends paid to members of the parent entity (net of equity issue) Dividends paid to non-controlling interests Distributions paid to non-controlling interests Repayment of other loans Proceeds from borrowings Repayment of borrowings Net cash (used in)/provided by financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash held in escrow 9(i) Effects of exchange rate changes on the balance of cash held in foreign currencies Cash and cash equivalents at the end of the period	Consolidated Half Year Ended 31 Dec 2011 31 Dec 2010 A$'000 A$'000
	53,555 39,034 (48,396) (43,567) 194 205 (253) (132) (1,901) (523)
	3,199 (4,983)
	(272) (205) (281) - 1,839 - 396 95 4,266 - (300) (378) - 149
	5,648 (339)
	(413) - (184) (169) (26) (82) - (500) 11 2,550 (287) (265)
	(899) 1,534
	7,948 (3,788) 11,346 15,479 759 - (2) (43)
	20,051 11,648

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the attached notes.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

NOTES TO THE HALF YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2011

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of compliance

The half year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting . Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting . The half year financial report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report.

(b) Basis of preparation

The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of selected non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

The Company is a company of the kind referred to in ASIC Class Order 98/0100, dated 10 July 1998, and in accordance with that Class Order amounts in the directors’ report and the half year financial report are rounded off to the nearest thousand dollars, unless otherwise indicated.

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 2011 annual financial report for the financial year ended 30 June 2011, except for the impact of the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current reporting period.

There are no new and revised Standards and amendments thereof and Interpretations effective for the current reporting period that are relevant to the Group.

The adoption of all the new and revised Standards and Interpretations has not resulted in any changes to the Group’s accounting policies and has no effect on the amounts reported for the current or prior periods. The new and revised Standards and Interpretations has not had a material impact and not resulted in changes to the group’s presentation of, or disclosure in, its half-year financial statements.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

NOTES TO THE HALF YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2011

NOTE 1: SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(c) Property, plant and equipment

Each class of property, plant and equipment is carried at cost or fair value where indicated less, where applicable, any accumulated depreciation and impairment losses.

Land and buildings

Freehold land and buildings are shown at their fair value being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction, based on a valuation by external independent valuers, less subsequent depreciation for buildings. Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation surplus in equity. Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity, all other decreases are charged to profit or loss. Each year the difference between depreciation based on the revalued carrying amount of the asset charged to profit or loss and depreciation based on the asset’s original cost is transferred from the revaluation surplus to retained earnings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

NOTE 2: INCOME Continuing operations Sales revenue Sale of goods and services Other revenue Interest revenue Other revenue Total other revenue Total sales revenue and other revenue Other income/(loss) Fair value loss on financial assets designated as at fair value through profit or loss Gain recognised on disposal of financial assets designated as at fair value through profit or loss Gain recognised on disposal of interest in former associate (refer to note 9) Gains on disposal of assets Total other income/(loss) Total income	Consolidated Half Year Ended 31 Dec 2011 31 Dec 2010 A$'000 A$'000
	37,550 36,679
	256 189 249 13
	505 202
	38,055 36,881
	- (1,049) 108 - 3,029 - - 9
	3,137 (1,040)
	41,192 35,841

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Tag Pacific Limited Half Year Financial Report 31 December 2011

NOTES TO THE HALF YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2011

NOTE 3: EXPENSES Continuing operations Other expenses is comprised as follows: Rental expenses Other expenses Total other expenses NOTE 4: DIVIDENDS During the period, Tag Pacific Limited made the following dividend payments: Final ordinary dividend franked to 100% at the tax rate of 30% paid on 5 October 2011 (2010: Nil) NOTE 5: ISSUE OF EQUITY SECURITIES Fully paid ordinary shares Balance at beginning of financial period Issue of shares(i) Share issue costs Balance at end of financial period	Consolidated Half Year Ended 31 Dec 2011 31 Dec 2010 A$'000 A$'000 557 382 1,786 1,066 2,343 1,448 Half Year Ended 31 Dec 2011 31 Dec 2010 Cents per share Total A$’000 Cents per share Total A$’000
	0.75 530 - -
	Consolidated 31 Dec 2011 31 Dec 2010 No.'000 A$'000 No.'000 A$'000
	70,607 16,477 70,607 16,477 750 117 - - - - - -
	71,357 16,594 70,607 16,477

(i) There were 750,240 fully paid ordinary shares issued at $0.155 pursuant to the Company’s Dividend Reinvestment Plan during the period (2010: nil).

The company issued 600,000 share options (2010: nil) over ordinary shares under its executive share option plan during the half-year reporting period. These share options had a fair value at grant date of $0.01 per share option (2010: $nil).

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Tag Pacific Limited Half Year Financial Report 31 December 2011

NOTES TO THE HALF YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2011

NOTE 6: SEGMENT INFORMATION

AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance.

The Tag Group’s reportable segments are organised into 3 major sectors – power investments, fair value investments and other investments. These sectors are the basis on which the Tag Group reports its reportable segment information. The principal products and services of each of those sectors are as follows:

• Power investments – consists of MPower Group Pty Limited, MPower Business Services Pty Limited, MPower Products Pty Limited (formerly M+H Power Systems Pty Ltd), MPower Pacific Limited (formerly M+H Power Systems Limited), MPower Projects Pty Limited (formerly Advanced Power Pty Ltd), MPower Solar Systems Pty Limited (formerly Solaris Technology Pty Ltd) and MPower Nominees Pty Limited (formerly Advanced Power Southern Pty Ltd) (all 59.3% owned at 31 December 2011). This group is a leading provider of innovative and dependable power solutions for use in all manner of emergency, back-up, generated and renewable power situations in Australia, New Zealand and Fiji.

• Fair value investments – consists principally of Tag’s investments in iSoft Group Limited which was sold on 18 July 2011.

• Other investments – consists principally of Tag’s investment in Unique World Group Pty Limited (which was sold on 2 December 2011) and the Power Property Unit Trust. The Power Property Unit Trust owns a property occupied by a subsidiary of MPower Group Pty Limited in Melbourne, Victoria.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

NOTES TO THE HALF YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2011

NOTE 6: SEGMENT INFORMATION (CONTINUED)

The following is an analysis of the group’s revenue and results from continuing operations by reportable segment:

Continuing operations Power investments Fair value investments Gain recognised on disposal of interest in former associate Other investments Total for continuing operations Share of (loss)/profits of associates Depreciation and amortisation expense Finance costs Unallocated costs Profit before income tax from continuing operations) Discontinued operations Building products investments Total for discontinued operations Depreciation and amortisation expense Finance costs Profit/(loss) before income tax from discontinued operations Income tax expense (continuing and discontinued operations) Consolidated segment profit for the period	Revenue Half Year Ended 31 Dec 2011 A$’000 31 Dec 2010 A$’000 37,721 36,836 - - - - 334 45	Segment profit Half Year Ended 31 Dec 2011 A$’000 31 Dec 2010 A$’000 3,596 2,947 108 (1,049) 3,029 - 121 45
	38,055 36,881 24 16	6,854 1,943 (147) 196 (225) (161) (276) (161) (534) (703)
		5,672 1,114 10 (89)
	24 16	10 (89) - - - -
		10 (89) (801) (401)
		4,881 624

The accounting policies of the reportable segments are the same as the Group’s accounting policies. Segment profit represents the profit earned by each segment without allocation of central administration costs and directors’ salaries, profits of associates, depreciation and amortisation costs, finance costs and income tax expense. This is the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

NOTES TO THE HALF YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2011

NOTE 6: SEGMENT INFORMATION (CONTINUED)

The following is an analysis of the Group’s assets by reportable operating segment:

Continuing operations Power investments Fair value investments Other investments Total segment assets Unallocated assets Assets (primarily cash) relating to discontinued operations Total consolidated assets	As at 31 Dec 2011 A$’000 As at 30 Jun 2011 A$’000 44,489 53,868 17 1,731 1,873 4,335
	46,379 59,934 13,511 6,458 384 694
	60,274 67,086

All assets are allocated to reportable segments. There are no assets used jointly by reportable segments.

NOTE 7: PROPERTY, PLANT & EQUIPMENT

Land and buildings – independent valuation(i) Less: accumulated depreciation Net balance at the end of the period Plant & equipment – at cost Less: accumulated depreciation Net balance at the end of the period Total property, plant & equipment	As at 31 Dec 2011 A$’000 As at 30 Jun 2011 A$’000 1,805 1,805 (26) (13)
	1,779 1,792
	3,901 3,586 (2,188) (1,974)
	1,713 1,612
	3,492 3,404

(i) The Group’s land and buildings were revalued by an independent valuer during the period ended 31 December 2010. The revaluation surplus was credited to a revaluation surplus in shareholders’ equity.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

NOTES TO THE HALF YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2011

NOTE 8: INTANGIBLE ASSETS

Goodwill Gross carrying amount Balance at beginning of the period Additional amounts recognised from business combinations occurring during the period(i) Accumulated impairment losses Balance at beginning of the period Movement during the period Balance at end of the period Net book value Other intangibles Gross carrying amount Balance at beginning of the period Additional amounts recognised during the period(ii) Accumulated impairment losses Balance at beginning of the period Movement during the period Balance at end of the period Net book value Total intangible assets	As at 31 Dec 2011 A$’000 As at 30 Jun 2010 A$’000 2,942 1,667 - 1,275
	2,942 2,942 - - - -
	- -
	2,942 2,942
	639 618 281 21
	920 639 (583) (568) (22) (15)
	(605) (583)
	315 56
	3,257 2,998

(i) Relates to goodwill recognised in relation to the acquisition of MPower Solar Systems Pty Limited (formerly Solaris Technology Pty Ltd).

(ii) Relates to internally generated product development costs capitalised during the period.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

NOTES TO THE HALF YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2011

NOTE 9: INVESTMENTS IN ASSOCIATES

On 2 December 2011 Tag sold its shareholding in Unique World Group Pty Limited. As a result of the sale equity accounting of this associate ceased from this date and a net gain on sale of $3,029,144 was realised. An equity accounted loss of $146,748 was derived from 1 July 2011 to 2 December 2011.

Net proceeds received at settlement Net proceeds receivable post settlement Escrow funds(i) Total proceeds on disposal of associate interest Less: carrying amount of investment on disposal Gain recognised on disposal of associate interest	A$'000 4,266 168 759
	5,193 (2,164)
	3,029

(i) Escrow funds represent restricted cash balance funds being held in an interest bearing escrow account which will be released in two equal instalments on the first and second anniversaries of the transaction, subject to any warranty or other claims under the transaction documentation.

NOTE 10: CONTINGENCIES AND COMMITMENTS

There are no material changes in the contingent liabilities or contingent assets since the end of the last annual reporting period.

NOTE 11: SUBSEQUENT EVENTS

No matter or circumstance has arisen since the end of the financial period which significantly affected or may significantly affect the operation of the Group, the results of its operations, or the state of affairs of the Group in future financial periods.

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Tag Pacific Limited Half Year Financial Report 31 December 2011

DIRECTORS’ DECLARATION

The directors declare that:

• (a) 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; and

• (b) In the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001 , including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.

Signed in accordance with a resolution of the directors made pursuant to section 303(5) of the Corporations Act 2001 .

On behalf of the directors

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..................................................... Peter Wise Chairman

Sydney, 21 February 2012

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