OBJECTIVE CORPORATION LIMITED — Earnings Release 2008

Aug 26, 2008

ASX Announcement

Date: 27 August 2008

Objective Corporation FY08 net profit $2 million

Leading Enterprise Content Management (ECM) company, Objective Corporation Limited (ASX: OCL) today announced a net profit after tax of $2.0 million for the year to 30 June 2008. Revenue increased by 4.7% to $33.5 million (FY07: $32.0 million).

Record full-year Asia Pacific revenue was $26.1 million, (FY07: $22.6 million) representing an increase of 15.5%. Asia Pacific profit before tax was $13.9 million, an increase of 60% (FY07: $8.7 million).

Objective’s balance sheet remains strong. At 30 June, the company had $16.8 million in cash and cash equivalents.

Directors are confident of the company’s growth and have declared a final dividend of 2.5 cents per share, partially franked to 58.5% (FY07: 2.25 cents fully franked). In addition, the directors have declared an unfranked 0.44 cents per share special dividend to offset the partial franking.

Financial Summary

Results summary	FY2008	FY2007	Change
Year ended 30 June	$m	$m	(%)
Revenue	33.5	32.0	�4.7%
R&D (fully expensed)	8.8	8.7	�1.1%
Net profit	2.0	(1.3)	N/C
Earningsper share	1.5 cps	(0.01)cps	N/C
Full year dividend (58.5%	2.5 cents	2.25 cents	�11.1%
franked in FY08)
Special dividend(unfranked)	0.44 cents	-	-

Mr Tony Walls, CEO, Objective Corporation, said: “Strong licence sales contributed to the company’s continued turnaround in the second half. This included a record result in Asia Pacific, driven by new contracts.”

Operations

Year ended 30 June	FY2008	FY2007	%
	**$m **	**$m **	Change
Asia Pacific revenue	26.1	22.6	15.5
European revenue	6.2	8.2	(24.4)

Objective Corporation

Objective Corporation (ASX:OCL) develops, markets, tailors and supports its own Enterprise Content Management (ECM) software solutions. Working with large, information intensive organisations including government departments and top 1000 corporations, Objective Corporation has established itself as one of the leaders in the ECM market, where its solutions have been consistent winners against international competition. Its solutions are open and integrate with existing applications and infrastructure, delivering clear outcomes and a measurable return on the client’s investment.

www.objective.com

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ASX Announcement

Asia Pacific

“Objective’s dedication to service excellence continued to win new and renewed business in Asia Pacific,” said Mr Walls.

Revenue increased 15.5%, a direct result of Objective’s long-term strategy and significant regional investment. The company has the largest dedicated ECM service delivery capability in the region.

Key contracts signed during the year include Australia’s corporate regulator, the Australian Securities and Investment Commission. Objective continued to expand its market share of the government sector across Australasia, as well as its business in targeted vertical markets including health, engineering and utilities.

Europe

Considerable progress was made during the second half toward transformation of the company’s operations in Europe. Soft demand and long lead times contributed to revenue below management expectations.

The highlight for the region was the Scottish Government’s upgrade to the latest version of Objective’s technology. This was a strong endorsement of Objective’s solutions for large-scale, flexible implementations that span multiple government portfolios.

The company continues to build partnerships and alliances with leading systems integrators. During the second half, new strategic partnerships were formed to support targeted vertical markets.

Research and Development

Key projects within Objective’s research and development portfolio made good progress during the year. These included new contentbased business applications being developed by the company’s Applications Engineering division. This division’s first commercial products are expected to be launched in the first half of 2009.

Objective maintained its significant investment in its technology. Fully expensed research and development for the year was $8.8 million, approximately 26% of revenue.

Corporate

Objective strengthened its board during FY2008 with the appointment of two new non-executive directors. Leigh Warren is a former Oracle Corporation Managing Director Australia & New Zealand, and previously served on the boards of Oracle in Australia, New Zealand and South Africa. Nick Kingsbury is based in the United Kingdom, and has 20 years’ experience as a software entrepreneur, strategist and

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ASX Announcement

venture capitalist. He is a director of Illumix Limited, YuMi.mobi Limited and Sitemorse Limited.

Outlook

The company maintains a solid long-term growth outlook. The ECM market continues to grow worldwide.

Mr Walls said, “Objective remains tightly focused on its business strategy of targeting vertical markets in specific geographies. As a result of our positive momentum, we are well placed to increase our share of our target markets, capitalising on the competitiveness of our products and the high levels of service to our customers.”

Sales in the key Asia-Pacific market are expected to grow, and remain resilient to market conditions. In Europe, the company has a pipeline of potential new business, which may return the business to profit in 2009.

The company continues to consider strategic acquisition opportunities that will add to our existing capabilities and provide value for shareholders.

The board and management of Objective Corporation, would again like to thank the company’s customers, staff and shareholders, for their commitment and valuable contribution to the ongoing success of the company.

-ends-

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