RESIMAC GROUP LTD — Earnings Release 2006

Sep 13, 2006

Level 2, The Atriam Building 168 St Georges Terrace Telephone: 08.9261.7000 acsimile: 08 9261 7079

Wednesday, 13 September 2006

News Release

Profit up 400% to $6.2 million

Result highlights Homeloans Ltd's continued turn around.

Financial highlights include:

(All figures are quoted on an AGAAP basis with AIFRS comparison)

• Net profit before tax up over 400% to $6.2 million (AIFRS down 2% to $\bullet$ $3.63 million)
• Basic earnings per share up from 0.02 cents to 7.03 cents (AIFRS 4.94 $\bullet$ . cents to 5.16 cents)
• Dividend for the half year 2.5 cents unfranked, bringing a total of 5.0 $\bullet$ cents for the year. Up 3.5 cents from 1.5 cents paid last year.
• Operating cash flow up 31% to $5.5 million from $4.2 million (AIFRS $2.0 million to $7.8 million)
• New loan approvals rose 15% to $1.24 billion $\bullet$

The Directors of non bank lender Homeloans Ltd (HOM) are pleased to announce a net profit before tax of $6.2 million. This year is the first full year in which results are reported under Australian International Financial Reporting Standards ("AIFRS"). On this basis the net profit before tax fell by just under 2% to $3.63 million, due to the re-classification of various items under the new accounting standards. The underlying performance is reflected in the AGAAP result.

Basic earnings per share rose from 0.02 cents to 7.03 cents per share.

The Directors have declared an unfranked dividend of 2.5 cents per ordinary share, bringing dividends for the full year to 5 cents per share. This is up 3.5 cents on the 1.5 cents paid last year.

Operating cash flow of $5.5 million is up 31% from $4.2 million last year. The AIFRS cash flow rose by $5.8 million from $2.0 million to $7.8 million.

New loan approvals increased 15% to $1.24 billion.

Under AIFRS the Residential Mortgage Trust ("RMT"), Homeloans Ltd's proprietary funding line, is brought onto Homeloans Ltd's balance sheet. This has the impact of dramatically increasing the assets and liabilities, revenue, expenses and operating cash flow of Homeloans Ltd. In essence the balance sheet is increase by the $711 million of loans in the trusts. The revenue is similarly increased by the interest revenue earned by the trusts.

Under AIFRS RMT is now accounted for under the effective interest rate model, AASB139. That is, income is now brought to account over the life of the loan rather than booked as an origination fee (upfront) and a management fee (ongoing). The increased penetration of the RMT programme in the same year as the introduction of AIFRS has had a negative impact on Homeloans Ltd's reported AIFRS result of approximately $3.9 million. This $3.9 million will now be brought to account in future accounting periods, resulting in a stronger recurring earnings stream.

From a net income point of view there are 5 major changes under AIFRS compared to AGAAP:

Swaps on fixed rate loans	$$0.07 \text{ m}$
Reset Preference Shares	($0.59 m)
Expensing of Employee Options	$($0.26 \text{ m})$
The Stamp Duty Refund	$$0.86 \text{ m}$
RMT	$($ $3.88 m)

The year saw a number of the initiatives introduced over the past eighteen months begin to gain momentum, such as;

• The increased penetration of the RMT as a significant funder;
• The increasing acceptance of our refined broker offering;
• The focus of our Western Australian retail offering; and,
• The improved operational efficiencies and cost controls. $\bullet$

The year ahead will see continued focus on our broker sales and the retail offering, especially in Western Australia, as well as continued focus on further operational efficiencies. The Company also sees opportunities in the consolidation of the sector.

The start to the year has continued as positively as the end of the June 06 year with volumes still growing. The Directors remain confident in the year ahead and for the Company to continue to grow profits and maintain a dividend at least in line with the 5 cents paid this year.

Further information: Tim Holmes, Chairman 08 9271 7000

Brian Jones, Managing Director 02 8267 2000

Jarrod Smith, Finance Director 02 8267 2000