MYECO GROUP LTD — Interim / Quarterly Report 2012

Feb 26, 2012

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TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

DATE: 27[th] February 2012

HALF- YEAR RESULTS-MATERIAL DIFFERENCES

In accordance with Listing Rule 3.1, the Company wishes to advise of the following material variances to its half yearly results to December 2011 compared to that of the corresponding period last year.

Revenue

Revenue for the 6 months period to December 2011 has increased by 159.44% to $2.7million as compared to the revenue of $1,028,272 for 6 months period to December 2010.The increase in revenue was a result of:

• improved sales performance from all the geographical market segments of the Company representing 180.64% increase in sales as compared to the sales in the corresponding period last year.

• an increase in R&D Tax Rebate by $172,952 compared to last year.

Loss Position

The Company’s loss from its bioplastics business for the 6 months to December 2011 was $1,509,615, an improvement of 22% or $405,465 over the six months to 31 December 2010. ($1,915,080).

However, the Company recorded a consolidated loss of approximately $2.2 million for the 6 months to 31st December 2011, an increase of 85% as compared with a loss of $1,175,964 for the same period in 2010.

The main reason for the increase in the Consolidated Net Loss is attributable to the Company’s investments in Bioglobal Limited (“BGL”) where, the following exceptional events and adjustments occurred:

• On 23rd December 2011, Shareholders of BGL approved an issue of shares to Good Harvest Biotech Holdings Limited of 300 million new ordinary shares at 1.3 cents cash per share to raise $3,900,000 in BGL Cardia did not participate in the issue and its investments of 18.78 million ordinary shares was diluted down to 4.63% (from current 17.78%).

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As a result, the Company at 31 December 2011, has written down its investments in BGL from $2,817,000 to $244,140.The resultant loss of $2,572,860 in value of investment has been recognised through Equity (Revaluation Reserve) - $1,900,853 and balance of $672,007 as impairment in the income statement.

• In the half year to December 2010, the Company recognised a gain of $736,883 resulting from the change in accounting method of recording its investments in Bioglobal Limited from equity method of accounting (AASB 128) to Available for Sale financial asset (AASB-139).The accounting method was changed due to cessation of BGL being an Associate of the Company effective 1 July 2010 (as defined in AASB 128). No such gain is required to be recognised in the current period.

PAT VOLPE Chairman