SIETEL LIMITED — Interim / Quarterly Report 2005

May 30, 2005

Rule 4.2A.3

Appendix 4D

Half year report Period ending 31 March 2005

Half yearlyABN or equivalent companyPreliminaryreferencefinal (tick)(iick)	Financial year ended ('current period')
004 217 734			31 MARCH, 2005
Results for announcement to the marketExtracts from this report for announcement to the market (see note 1).				$A'000
Revenues from ordinary activities $(item 1.1)$	up	16%	to	11,955
Profit (loss) from ordinary activities after tax attributable tomembers ( item 1.22 ) (Refer to 19.2)	down	44%	to	270.
Profit (loss) from extraordinary items after tax attributableto members ( item $2.5(d)$ )	gain (loss)оf
Net profit (loss) for the period attributable to members(item I.11)	down	44%	to	270
Dividends (distributions)	Amount per security			Franked amount persecurity
Final dividend (Preliminary final report only - item 15.4)Interim dividend (Half yearly report only - item 15.6)	N/A	é		¢
Previous corresponding period (Preliminary final report -item 15.5; half yearly report - item 15.7)		¢		¢
+ Record date for determining entitlements to thedividend,(in the case of a trust, distribution) (see item $15.2$ )	N/A
A brief explanation of any of the figures reported above necessary to enable the figures to be understood.

+ See chapter 19 for defined terms.

		Current period -$A'000	Previous correspondingperiod - $A'000
1.1	Revenues from ordinary activities (see items 1.23$-I.25$ )	11,955	10,326
1.2	Expenses from ordinary activities (see items 1.26& 1.27)	11,710	9,663
1.3	Borrowing costs	80	89
1.4	Share of net profits (losses) of associates and jointventure entities (see item 16.7)
1.5	Profit (loss) from ordinary activities before tax	165	574
		(105)	92
1.6	Income tax on ordinary activities (see note $4$ )
$1.7^{\circ}$	Profit (loss) from ordinary activities after tax	270	482
1.8	Profit (loss) from extraordinary items after tax(see item $2.5$ )
1.9 2	Net profit (loss)	270	482
1.10	Net profit (loss) attributable to outside $+$ equityinterests
1.11	Net profit (loss) for the period attributable tomembers	270	482
	Non-owner transaction changes in equity
1.121.13	Increase (decrease) in revaluation reservesNet exchange differences recognised in equity
1.14	Other revenue, expense and initial adjustments
	recognised directly in equity (attach details)
	Initialadjustments from UIGtransitional
1.15	provisions
1.16	Total transactions and adjustments recogniseddirectly in equity (items 1.12 to 1.15)	N/A	N/A
1.17	Total changes in equity not resulting from
	transactions with owners as owners

Condensed consolidated statement of financial performance

Earnings per security (EPS)	Current period	PreviouscorrespondingPeriod
Basic EPS1.18	3.37	6.03
Diluted EPS1.19	3.34	5.97

+ See chapter 19 for defined terms.

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

		Current	period۰	Previous
		$A'000		corresponding period -
				$A'000
1.20	Profit (loss) from ordinary activities after tax		270	482
	(item 1.7)
1.21	Less (plus) outside $+$ equity interests
1.22	Profit (loss) from ordinary activities after		270	482
	tax, attributable to members

Revenue and expenses from ordinary activities

(see note $15$ )

		Current$A'000	period$\blacksquare$	Previouscorresponding period -$A'000
1.23	Revenue from sales or services		11,373	9,580
1.24	Interest revenue		25	33
1.25	Other relevant revenue		557	713
1.26	Details of relevant expenses		10,863	8,929
1.27	Depreciationandamortisationexcludingamortisation of intangibles (see item 2.3)		927	823
	Capitalised outlays
1.28	Interest costs capitalised in asset values
1.29	Outlays capitalised in intangibles (unlessarising from an $+$ acquisition of a business)

Consolidated retained profits

		Current period -$A'000	Previous correspondingperiod - $A'000
1.30	Retained profits (accumulated losses) at thebeginning of the financial period	6,710	5,406
1.31	Net profit (loss) attributable to members (itemLID	270	482
1.32	Net transfers from (to) reserves ( details ifmaterial )
1.33	Net effect of changes in accounting policies
1.34	Dividends and other equity distributions paidor payable

+ See chapter 19 for defined terms.

1.35 Retained profits (accumulated losses) at end	6,980	5,888
of financial period

Intangible and extraordinary items

		Consolidated - current period
		Before tax	Related tax	Related	Amount (after
		$A'000	$A'000	outside	${ax}$
				$+$ equity	attributable to
		(a)	(b)	interests	members$A'000
				$A'000	(d)
				(c)
		17			17
2.1	Amortisation of goodwill
$2.2^{\circ}$	Amortisation of other	70			70
	intangibles
		87			87
2.3	Total amortisation ofintangibles
2.4	Extraordinaryitems
	(details)
2.5	Total extraordinary items

Comparison of half year profits

(Preliminary final report only)

• $3.1$ Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the $1st$ half year (item $1.22$ in the half yearly report)
• Consolidated profit (loss) from ordinary $3.2$ activities after tax attributable to members for the 2nd half year

Current year - $A'000	Previous year - $A'000
270	482

+ See chapter 19 for defined terms.

Condensed consolidated statement offinancial position		Atendοfcurrent period	As shown in lastannual report	As in last halfyearly report
		$A'000	$A'000	$A'000
	Current assets
4.1	Cash	690	918	893
4.2	Receivables	2,379	1,747	1,167
4.3	Investments
4.4	Inventories	2,737	2,671	2,612
4.5	Tax assets
4.6	Other (provide details if material)	107	70	120
4.7	Total current assets	5,913	5,406	4,792
4.8	Non-current assetsReceivables	22	22	72
4.9	Investments (equity accounted)
4.10	Other investments	29	29	29
4.11	Inventories
4.12	Exploration and evaluation expenditure
	capitalised (see para .71 of AASB1022
4.13	Developmentproperties$\int$ miningentities)
4.14	Other property, plant and equipment(net)	11,378	11,511	11,468
4.15	Intangibles (net)	334	351	368
4.16	Tax assets	1,190	1,166	980
4.17	Other (provide details if material)	110	179	249
4.18	Total non-current assets	13,063	13,258	13,166
4.19	Total assets	18,976	18,664	17,958
	Current liabilities
4.20	Payables	2,319	2,280	1,557
4.21	Interest bearing liabilities	554	452	991
4.22	Tax liabilities	98	(90)	335
4.23	Provisions exc. tax liabilities	3,055	3,019	2,837
4.24	Other (provide details if material)
4.25	Total current liabilities	6,026	5,661	5,720
	Non-current liabilities
4.26	Payables
4.27	Interest bearing liabilities	490	813	870
4.28	Tax liabilities
4.29	Provisions exc. tax liabilities
4.30	Other (provide details if material)
4.31	Total non-current liabilities	490	813	870

+ See chapter 19 for defined terms.

4.32	Total liabilities	6,516	6,474	6,590
4.33	Net assets	12,460	12,190	11,368
	Equity
4.34	Capital/contributed equity	4,257	4,257	4,257
4.35	Reserves	1,223	1,223	1,223
4.36	Retained profits (accumulated losses)	6,980	6,710	5,888
4.37	Equity attributable to members of the	12,460	12,190	11,368
	parent entity
4.38	Outside + equity interests in controlled
	entities
		12,460	12,190	11,368
4.39	Total equity
4.40	Preference capital included as part of4.37	N/A	N/A	N/A

Condensed consolidated statement of financial position continued

Notes to the condensed consolidated statement of financial position

Exploration and evaluation expenditure capitalised

(To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred.)

		Current period $A'000	Previous
			corresponding period -
			SA'000
5.1	Opening balance	N/A	N/A
5.2	Expenditure incurred during current period
5.3	Expenditure written off during current period
5.4	Acquisitions, disposals, revaluationincrements, etc.
5.5	Expenditure transferred to DevelopmentProperties
5.6	Closing balance as shown in theconsolidated balance sheet (item 4.12)

Development properties(To be completed only by entities with mining interests if amounts are material)

		Current period $A'000	Previous
			corresponding
			Period - $A'000
-6.1	Opening balance	N/A	N/A
6.2	Expenditure incurred during current period
6.3	Expenditure transferred from exploration andevaluation

+ See chapter 19 for defined terms.

• Expenditure written off during current period 6.4
• 6.5 Acquisitions, disposals, revaluation increments, etc.
• Expenditure transferred to mine properties 6.6
• $6.7$ Closing balance as shown in the consolidated balance sheet (item $4.13$ )

N/A	N/A

Condensed consolidated statement of cash flows

		Current period	Previous
		$A'000	corresponding period
			$-$ $A'000
	Cash flows related to operating activities
7.1	Receipts from customers	12,540	10,833
7.2	Payments to suppliers and employees	(11, 647)	(10, 185)
7.3	Dividends received from associates
7.4	Other dividends received
7.5	Interest and other items of similar nature	25	33
	received
7.6	Interest and other costs of finance paid	(80)	(89)
7.7	Income taxes paid	(66)	(131)
7.8	Other (provide details if material)
		772	461
7.9	Net operating cash flows
	Cash flows related to investing activities
7.10	Payment for purchases of property, plant and	(794)	(943)
	equipment
7.11	Proceeds from sale of property, plant and	15
7.12	equipmentPayment for purchases of equity investments
7.13	Proceeds from sale of equity investments
7.14	Loans to other entities
7.15
7.16	Loans repaid by other entitiesOther (provide details if material)	1
7.17	Net investing cash flows	(778)	(940)
	Cash flows related to financing activities
7.18	Proceeds from issues of + securities (shares,
	options, etc.)
7.19	Proceeds from borrowings
7.20	Repayment of borrowings	(221)	(628)
7.21	Dividends paid
7.22	Other (provide details if material)
7.23	Net financing cash flows	(221)	(628)
7.24	Net increase (decrease) in cash held	(227)	(1,107)

$+$ See chapter 19 for defined terms.

7.25	Cash at beginning of period
	(see Reconciliation of cash)
7.26	Exchange rate adjustments to item 7.25.

$7.27$ Cash at end of period (see Reconciliation of cash)

917	1,901
690	794

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. (If an amount is quantified, show comparative amount.)

Reconciliation of cash

	Reconciliation of cash at the end of the period (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.	Current period $A'000	PreviouscorrespondingPeriod - $A'000
8.1	Cash on hand and at bank	690	893
8.2	Deposits at call
8.3	Bank overdraft		'99
8.4	Other (provide details)
8.5	Total cash at end of period (item 7.27)	690		794

Other notes to the condensed financial statements

Ratios		Current period	PreviouscorrespondingPeriod
9.1	Profit before tax / revenueConsolidated profit (loss) from ordinaryactivities before tax ( item 1.5 ) as a percentageof revenue $(item 1.1)$	1.38%	5.56%
9.2	Profit after tax $/$ $^+$ equity interestsConsolidated net profit (loss) from ordinaryactivities after tax attributable to members$(item 1.11)$ as a percentage of equity (similarlyattributable) at the end of the period (item4.37	2.16%	4.24%

+ See chapter 19 for defined terms.

Earnings per security (EPS)

$10.$ Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share are as follows.

Profit/loss for the period x $100% = 269,668 \times 100 = 3.37$Basic $EPS = No$ . of ordinary securities	8,007,479
Diluted EPS = $\frac{Profit}{loss}$ for the period x 100% = $\frac{269,668}{x}$ x 100 = 3.34No. of ordinary securities$+$ Preference securities	8,007,479+75,000
NTA backing(see note 7)	Current period	Previous correspondingPeriod

$11.1$ Net tangible asset backing per +ordinary security

	.
$150.00\phi$	134.27¢

Discontinuing Operations(Entities must report a description of any significant activities or events relating to discontinuing operations in accordance with paragraph 7.5 (g) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they have disclosed in their accounts in accordance with AASB 1042: Discontinuing Operations (see note 17).)

$12.1$ Discontinuing Operations

$N/A$

+ See chapter 19 for defined terms.

Control gained over entities having material effect

13.1 Name of entity (or group of entities)

N/A

• 13.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) since the date in the current period on which control was +acquired
• 13.3 Date from which such profit has been calculated
• 13.4 Profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period

$
$

Loss of control of entities having material effect

14.1 Name of entity (or group of entities)

$N/A$

• 14.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the current period to the date of loss of control
• 14.3 Date to which the profit (loss) in item 14.2 has been calculated
• 14.4 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period
• $14.5 -$ Contribution to consolidated profit (loss) from ordinary activities and extraordinary items from sale of interest leading to loss of control

Dividends (in the case of a trust, distributions)

• 15.1 Date the dividend (distribution) is payable
• 15.2 +Record date to determine entitlements to the dividend (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if $+$ securities are not $+$ CHESS approved, or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if +securities are +CHESS approved)

$
$
$

$N/A$

$+$ See chapter 19 for defined terms.

Amount per security

		Amount persecurity	Frankedamount persecurity at %tax (see note	Amount persecurity offoreign sourcedividend
15.4	(Preliminary final report only)Final dividend:Current year	¢	Ć
15.5	Previous year		Ú.
15.6	(Half yearly and preliminary final reports)Interim dividend: Current year	¢	Ć
15.7	Previous year	¢	¢

Total dividend (distribution) per security (interim plus final)

(Preliminary final report only)

		Current year	Previous year
15.8	+ Ordinary securities	N/A	-N/A
15.9	Preference + securities	N/A	-N/A

Current period $A'000

Half yearly report - interim dividend (distribution) on all securities or Preliminary final report - final dividend (distribution) on all securities

			Period - $A'000
15.10	+ Ordinary securities (each class separately)	N/A	N/A
15.11	Preference + securities (each class	N/A	N/A
	separately)	N/A	N/A
15.12	Other equity instruments (each classseparately)

15.13 Total

The $+dividend$ or distribution plans shown below are in operation.

$N/A$

The last date(s) for receipt of election notices for the +dividend or distribution plans

Any other disclosures in relation to dividends (distributions). (For half yearly reports, provide details in accordance with paragraph 7.5(d) of AASB 1029 Interim Financial Reporting)

Previous corresponding

+ See chapter 19 for defined terms.

$\overline{N/A}$

Details of aggregate share of profits (losses) of associates and joint venture entities

entities':	Group's share of associates' and joint venture	Current period$A'000	Previouscorresponding period- $A'000
16.1	Profit (loss) from ordinary activities before tax	N/A	N/A
16.2	Income tax on ordinary activities
16.3	Profit (loss) from ordinary activities aftertax
16.4	Extraordinary items net of tax
16.5	Net profit (loss)
16.6	Adjustments
16.7	Share of net profit (loss) of associates andjoint venture entities

Material interests in entities which are not controlled entities

The economic entity has an interest (that is material to it) in the following entities. (If the interest was acquired or disposed of during either the current or previous corresponding period, indicate date of acquisition or disposal ("to dd/mm/yy").)

Name of entity	Percentage of ownershipinterest held at end of period ordate of disposal		Contribution to net profit (loss) (item1.9)
Equity accounted17.1associates andjoint ventureentities	Currentperiod	Previouscorrespondingperiod	Current period$A'000	Previouscorrespondingperiod-$A'000

+ See chapter 19 for defined terms.

17.2 Total
17.3 Other materialinterests
17.4 Total

+ See chapter 19 for defined terms.

Issued and quoted securities at end of current period(Description must include rate of interest and any redemption or conversion rights together with prices and dates)

18.1	Category of + securitiesPreference + securities	Total number75,000	Number quoted75,000	Issueprice persecurity(see note(4)(cents)200	Amountpaid uppersecurity(seenote $14$ )(cents)200
	(description)
18.2	Changes during current period(a) Increases through issues(b) Decreases through returnsof capital, buybacks,redemptions
18.3	+ Ordinary securities	8,007,479	8,007,479	50	50
18.4	Changes during current period(a) Increases through issues(b) Decreases through returnsof capital, buybacks
18.5	+ Convertible debt securities(description and conversionfactor)
18.6	Changes during current period(a) Increases through issues(b) Decreases throughsecurities matured, converted
18.7	Options (description andconversion factor)			ExercisePrice	ExpiryDate$(f$ any)
18.8	Issued during current period
18.9	Exercised during currentperiod
18.10	Expired during current period
18.11	Debentures (description)	N/A
18.12	Changes during current period(a) Increases through issues
	(b) Decreases throughsecurities matured, converted

$+$ See chapter 19 for defined terms.

18.13	Unsecured notes(description)	N/A
18.14	Changes during current period(a) Increases through issues
	(b) Decreases throughsecurities matured, converted

Segment reporting

(Information on the business and geographical segments of the entity must be reported for the current period in accordance with AASB 1005: Segment Reporting and for half year reports, AASB 1029: Interim Financial Reporting. Because entities employ different structures a pro forma cannot be provided. Segment information in

the layout employed in the entity's $\pm$ accounts should be reported separately and attached to this report.) (See attachment Schedule 2)

Comments by directors

(Comments on the following matters are required by ASX or, in relation to the half yearly report, by AASB 1029: Interim Financial Reporting. The comments do not take the place of the directors' report and statement (as required by the Corporations Act) and may be incorporated into the directors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NIL. If there is insufficient space to comment, attach notes to this report.)

Basis of financial report preparation

• 19.1 If this report is a half yearly report, it is a general purpose financial report prepared in accordance with the listing rules and AASB 1029: Interim Financial Reporting. It should be read in conjunction with the last +annual report and any announcements to the market made by the entity during the period. The financial statements in this report are "condensed financial statements" as defined in AASB 1029: Interim Financial Reporting. This report does not include all the notes of the type normally included in an annual financial report. [Delete if preliminary final report.]
• 19.2 Material factors affecting the revenues and expenses of the economic entity for the current period. In a half yearly report, provide explanatory comments about any seasonal or irregular factors affecting operations.

Cost increases over the last twelve months, combined with competitive price pressures, in part, related to importers of competitive products benefiting from the Australian dollars relative strength which has reduced margin and therefore has reflected in reduced profit before tax from ordinary activities.

Management has focused attention on improvements in efficiencies via product design and process improvement but these measures take time to implement and yield lower gains than current price movements being experienced.

19.3 A description of each event since the end of the current period which has had a material effect and which is not already reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

+ See chapter 19 for defined terms.

$N/A$

19.4 Franking credits available and prospects for paying fully or partly franked dividends for at least the next year.

$N/A$

$19.5 -$ Unless disclosed below, the accounting policies, estimation methods and measurement bases used in this report are the same as those used in the last annual report. Any changes in accounting policies, estimation methods and measurement bases since the last annual report are disclosed as follows. (Disclose changes and differences in the half yearly report in accordance with AASB 1029: Interim Financial Reporting. Disclose changes in accounting policies in the preliminary final report in accordance with AASB 1001: Accounting Policies-Disclosure).

$N/A$

19.6 Revisions in estimates of amounts reported in previous interim periods. For half yearly reports the nature and amount of revisions in estimates of amounts reported in previous +annual reports if those revisions have a material effect in this half year.

$N/A$

$19.7$ Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent assets since the last + annual report.

$N/A$

Additional disclosure for trusts

+ See chapter 19 for defined terms.

• 20.1 Number of units held by the management company or responsible entity or their related parties.
• 20.2 A statement of the fees and commissions payable to the management company or responsible entity.

Identify:

• initial service charges $\bullet$
• management fees
• other fees

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place

Date

Time

Approximate date the "annual report will be available

Compliance statement

Ĭ This report has been prepared in accordance with AASB Standards, other AASB authoritative pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to $ASK$ (see note 12).

Identify other standards used

• $\mathfrak{D}$ This report, and the "accounts upon which the report is based (if separate), use the same accounting policies.
• This report does give a true and fair view of the matters disclosed (see note 2). 3
• $\overline{4}$ This report is based on +accounts to which one of the following applies. $(Tick one)$ The "accounts have been The +accounts have been $\checkmark$ audited. subject to review.

+ See chapter 19 for defined terms.

The *accounts are in the process of being audited or subject to review.

The "accounts have not vet been audited or reviewed.

• $\overline{5}$ If the audit report or review by the auditor is not attached, details of any qualifications are attached/will follow immediately they are available* (delete one). (Half vearly report only the audit report or review by the auditor must be attached to this report if this report is to satisfy the requirements of the Corporations Act.)
• The entity has/does not have* (delete one) a formally constituted audit committee. 6

Sign here:	(Director/Company Secretary)	Date:
Print name:

Notes

• $\mathbf{L}$ For announcement to the market The percentage changes referred to in this section are the percentage changes calculated by comparing the current period's figures with those for the previous corresponding period. Do not show percentage changes if the change is from profit to loss or loss to profit, but still show whether the change was up or down. If changes in accounting policies or procedures have had a material effect on reported figures, do not show either directional or percentage changes in profits. Explain the reason for the omissions in the note at the end of the announcement section. Entities are encouraged to attach notes or fuller explanations of any significant changes to any of the items in page 1. The area at the end of the announcement section can be used to provide a cross reference to any such attachment.
• $2.$ True and fair view If this report does not give a true and fair view of a matter (for example, because compliance with an Accounting Standard is required) the entity must attach a note providing additional information and explanations to give a true and fair view.

$\overline{3}$ . Condensed consolidated statement of financial performance

• ftem 1.1 The definition of "revenue" and an explanation of "ordinary activities" are set out in AASB 1004: Revenue, and AASB 1018: Statement of Financial Performance.
• ftem 1.6 This item refers to the total tax attributable to the amount shown in item 1.5. Tax includes income tax and capital gains tax (if any) but excludes taxes treated as expenses from ordinary activities (eg, fringe benefits tax).

+ See chapter 19 for defined terms.

$\overline{4}$ Income tax If the amount provided for income tax in this report differs (or would differ but for compensatory items) by more than 15% from the amount of income tax prima facie payable on the profit before tax, the entity must explain in a note the major items responsible for the difference and their amounts. The rate of tax applicable to the franking amount per dividend should be inserted in the heading for the column "Franked amount per security at % $\frac{1}{2}$ for items 15.4 to 15.7

$5.$ Condensed consolidated statement of financial position

Format The format of the consolidated statement of financial position should be followed as closely as possible. However, additional items may be added if greater clarity of exposition will be achieved, provided the disclosure still meets the requirements of AASB 1029: Interim Financial Reporting, and AASB 1040: Statement of Financial Position. Also, banking institutions, trusts and financial institutions may substitute a clear liquidity ranking for the Current/Non-Current classification.

Basis of revaluation If there has been a material revaluation of non-current assets (including investments) since the last *annual report, the entity must describe the basis of revaluation adopted. The description must meet the requirements of AASB 1010: Accounting for the Revaluation of Non-Current Assets. If the entity has adopted a procedure of regular revaluation, the basis for which has been disclosed and has not changed, no additional disclosure is required.

• $6.$ Condensed consolidated statement of cash flows For definitions of "cash" and other terms used in this report see AASB 1026: Statement of Cash Flows. Entities should follow the form as closely as possible, but variations are permitted if the directors (in the case of a trust, the management company) believe that this presentation is inappropriate. However, the presentation adopted must meet the requirements of $AASB$ 1026. $\pm$ Mining exploration entities may use the form of cash flow statement in Appendix 5B.
• Net tangible asset backing Net tangible assets are determined by deducting from total $7.$ tangible assets all claims on those assets ranking ahead of the $+$ ordinary securities (ie, all liabilities, preference shares, outside +equity interests etc). +Mining entities are not required to state a net tangible asset backing per $+$ ordinary security.
• $\mathbf{R}$ . Gain and loss of control over entities The gain or loss must be disclosed if it has a material effect on the "accounts. Details must include the contribution for each gain or loss that increased or decreased the entity's consolidated profit (loss) from ordinary activities and extraordinary items after tax by more than 5% compared to the previous corresponding period.
• $91$ Rounding of figures This report anticipates that the information required is given to the nearest $1,000. If an entity reports exact figures, the $A'000 headings must be amended. If an entity qualifies under ASIC Class Order 98/0100 dated 10 July 1998, it may report to the nearest million dollars, or to the nearest $100,000, and the $A'000 headings must be amended.
• $10.$ Comparative figures Comparative figures are to be presented in accordance with AASB 1018 or AASB 1029 Interim Financial Reporting as appropriate and are the unadjusted figures from the latest annual or half year report as appropriate. However, if an adjustment has been made in accordance with an accounting standard or other reason or if there is a lack of comparability, a note explaining the position should be attached. For the statement of financial performance, AASB 1029 Interim Financial Reporting requires information on a year

+ See chapter 19 for defined terms.

to date basis in addition to the current interim period. Normally an Appendix 4D to which AASB 1029 Interim Financial Reporting applies would be for the half year and consequently the information in the current period is also the year to date. If an Appendix 4D Half yearly version is produced for an additional interim period (eg because of a change of reporting period), the entity must provide the year to date information and comparatives required by AASB 1029 Interim Financial Reporting. This should be in the form of a multi-column version of the consolidated statement of financial performance as an attachment to the additional Appendix 4D.

• Additional information An entity may disclose additional information about any matter, and $H_{\alpha}$ must do so if the information is material to an understanding of the reports. The information may be an expansion of the material contained in this report, or contained in a note attached to the report. The requirement under the listing rules for an entity to complete this report does not prevent the entity issuing reports more frequently. Additional material lodged with the $+$ ASIC under the Corporations Act must also be given to ASX. For example, a director's report and declaration, if lodged with the $+A$ SIC, must be given to ASX.
• $12.$ Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if one exists) must be complied with.
• Corporations Act financial statements This report may be able to be used by an entity $137$ required to comply with the Corporations Act as part of its half-year financial statements if prepared in accordance with Australian Accounting Standards.
• $14.$ Issued and quoted securities The issue price and amount paid up is not required in items 18.1 and 18.3 for fully paid securities.
• 15 Details of expenses AASB 1018 requires disclosure of expenses from ordinary activities according to either their nature or function. For foreign entities, there are similar requirements in other accounting standards accepted by ASX. $AASBED$ 105 clarifies that the disclosures required by $AASB$ 1018 must be either all according to nature or all according to function. Entities must disclose details of expenses using the layout (by nature or function) employed in their $\pm$ accounts

The information in lines 1.23 to 1.27 may be provided in an attachment to Appendix 4D.

Relevant Items AASB 1018 requires the separate disclosure of specific revenues and expenses which are not extraordinary but which are of a size, nature or incidence that disclosure is relevant in explaining the financial performance of the reporting entity. The term "relevance" is defined in $AASB$ 1018. There is an equivalent requirement in $AASB$ 1029: Interim Financial Reporting. For foreign entities, there are similar requirements in other accounting standards accepted by ASX.

16 Dollars If reporting is not in A$, all references to $A must be changed to the reporting currency. If reporting is not in thousands of dollars, all references to "000" must be changed to the reporting value.

$17.$ Discontinuing operations

Half yearly report

$+$ See chapter 19 for defined terms.

All entities must provide the information required in paragraph 12 for half years beginning on or after 1 July 2001.

Preliminary final report

Entities must either provide a description of any significant activities or events relating to discontinuing operations equivalent to that required by paragraph 7.5 (g) of $AASB$ 1029: Interim Financial Reporting, or, the details of discontinuing operations they are required to disclose in their "accounts in accordance with AASB 1042 Discontinuing Operations.

In any case the information may be provided as an attachment to this Appendix 4D.

18. Format

This form is a Word document but an entity can re-format the document into Excel or similar applications for submission to the Companies Announcements Office in ASX.

+ See chapter 19 for defined terms.

SIETEL LIMITED SHAREHOLDER RANKING PREFERENCE SHARES AS AT 31 MARCH, 2005

NUMBER	NAME	RANKING	NO. OFSHARESHELD	$%$ OFSHARESHELD
10001	WINPAR HOLDINGS LIMITED	1	16,300	21.73
10055	OPAL MAX PTY LTD	$\overline{2}$	15,100	20.13
4370	ELKINGTON, DR GORDON BRADLEY	3	11,500	15.33
4380	ELKINGTON ,MILLY	4	11,500	15.33
30036	LYNTINA PTY LTD	5	5,300	7.07
7650	ILEAVER GRAHAM ALLAN	6	4,800	6.40
1119	IALITON PTY LTD	$\overline{7}$	1,600	2.13
4800	FLINT GRACE LAMOND	8	1,200	1.60
7655	LEAVER, GRAHAM ALAN AND	9	500	0.67
8355	MANNERIM PTY LTD	10	500	0.67
8380	MARSHALL EST. OF THE LATE GUY	11	500	0.67
3480	CROFTON HENRY EDWARDS MELVILLE	12	400	0.53
8430	MARTINDALE MARJORIE HILDA	13	300	0.40
11515	ROSS DORIS ISABEL	14	300	0.40
30027	BRENTALL, GWENDOLINE	15	300	0.40
30108	KENEALLY, SUZANNE DENISE	16	300	0.40
30109	MORTLOCK, PATRICIA GAIL	17	300	0.40
2110	BODLE MARY CATHERINE	18	200	0.27
2538	BROWN, PATRICIA FLORENCE EMILY	19	200	0.27
4930	FOWLES HERBERT ALEXANDER	20	200	0.27

+ See chapter 19 for defined terms.

SIETEL LIMITED SHAREHOLDER RANKING ORDINARY SHARES AS AT 31 MARCH, 2005

NUMBER	NAME	RANKING	NO. OFSHARESHELD	$%$ OFSHARESHELD
13180	TRIPLE TWO INVESTMENTS PTY LTD	1	2,271,666	28.37
8018	LYNTINA PTY LTD	$\overline{2}$	689,000	8.60
3790	DELVEST PTY LTD	3	590,000	7.37
30034	THE THREE PUMPKINS PTY LTD	4	560,000	6.99
30016	MERBEN PTY LTD	5	425,050	5.31
11170	IREES RICHARD	6	353,800	4.42
12100	SIDERFIN HOLDINGS PTY LTD	$\overline{7}$	337,250	4.21
9170	METASOKOL PTY LTD	8	333,000	4.16
4370	ELKINGTON, DR GORDON BRADLEY	9	313,200	3.91
30049	SIDERFIN HOLDINGS PTY LTD	10	219,645	2.74
9140	MERBEN PTY LTD	11	121,450	1.52
12104	SIDERFIN HOLDINGS PTY LTD	12	120,000	1.50
30015	REES RICHARD	13	111,661	1.39
9840	NIGHTINGALE JOHN KENNING	14	101,250	1.26
30021	MERBEN PTY LTD	15	68,865	0.86
30120	PELZ, RALF	16	68,162	0.85
11090	REDEN INVESTMENTS PTY LTD	17	62,000	0.77
30024	DELVEST PTY LTD	18	62,000	0.77
30030	TRIPLE TWO INVESTMENTS PTY LTD	19	39,225	0.49
7770	LILLIE JAMES MOAR	20	38,500	0.48

+ See chapter 19 for defined terms.

SIETEL LIMITED 31 MARCH, 2005 SCHEDULE 1.24 - DETAILS OF REVENUE AND EXPENSES

		MARCH2005$	$'000
REVENUE	Sales Revenue	11,373,000	11,373
	Dividends Received	780	ľ
	Interest Received	25,119	25
	Rent Revenue	148,417	148
	Other Revenue	392,578	393
	Proceeds from disposal	14,901	15
	Total	11,954,795	11,955	Profit	164,644
EXPENSES	Cost of Goods Sold	5,761,562	5,761	before tax
	Overheads	3,070,798	3,071
	Abnormal Item	$\overline{0}$	$\theta$
	Administration Exp	493,324	493
	Selling Exp	2,184,696	2,185
	Finance Exp	279,772	280
	Total	11,790,152	11,790

+ See chapter 19 for defined terms.

SIETEL LIMITED
MARCH 2005

SCHEDULE 2 - BUSINESS SEGMENTS

	MANUFACTURING		INVESTMENTS		TOTAL
	CurrentYear	PreviousYear	CurrentYear	PreviousYear	CurrentYear	PreviousYear
	$A'000	$A'000	$A'000	$A'000	$A'000	$A'000
Operating Revenue	11,673	9,861	267	463	11,940	10,324
Non operating revenue	8	$\Omega$	7	2	15	$\overline{2}$
Total Revenue	11,681	9,861	274	465	11,955	10,326
Assets	5,606	4,142	13,371	13,816	18,976	17,958
Consolidate (profit)/lossfrom ordinary activities	$-51$	$-24$	$-219$	$-458$	$-270$	$-482$
Abnormal items	$\circ$	$\overline{0}$	0	$\Omega$
Consolidate (profit)/lossfrom ordinary activities	$-51$	$-24$	$-219$	$-458$	$-270$	$-482$

+ See chapter 19 for defined terms.

AN MARA ungangKabupatèn

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF SIETEL LIMITED

Scope

We have reviewed the financial report in the form of an Appendix 4D of Sietel Limited for the half-year ended 31 March 2005.

The company's directors are responsible for the Appendix 4D. We have performed an independent review of the Appendix 4D in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the Appendix 4D is not presented fairly in accordance with Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements and statutory requirements.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than given in an audit. We have not performed an audit and, accordingly. we do not express an audit opinion.

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year Appendix 4D of Sietel Limited is not in accordance with:

• $\mathbb{R}^3$ the Corporations Act 2001, including:
  • giving a true and fair view of the company's financial position at 31 March 2004 á. and of its performance for the half-year ended on that date; and
  • complying with Accounting Staridard AASB 1029: Interim Financial Reporting ÎÈ. and the Corporations Regulations; and
• other mandatory professional reporting requirements. ĵη.

Lapsel McDonald Cooler

٦'n

INPACT McDonald Carter Chartered Accountants

G. S. Parker

Partner

Melbourne Dated this

day of

Mav

2005

Member of the washibonde BIPACT accosational metwork,

PPACT McDonald Carter Pty Ltd. ABN 46 109 590 169Updel A. J. Dueen Street, Methodrane Victoria 3000 Telephone (61.3.8613.8888 Factionis (61.3.8613.8800) mpact@medora&dcamer.com.au www.medoraddcamer.com.au Innorpreasang Cran, Cameron Partners

+ See chapter 19 for defined terms.

SIETEL LIMITED AND CONTROLLED ENTITIES DIRECTORS' REPORT FOR THE HALF YEAR ENDED MARCH 31 2005.

The directors of the Company in office at the date of this report are :- Delwyn Garland Rees, Geoffrey Ernest Nanscawen and Richard Rees.

DIRECTORSMR. DELWYN G. REES	DIRECTOR (CHAIRMAN) AGE 79
Qualifications	Diploma of Commerce (Melbourne University)
	Member of Australian Society of Accountants
	Certified Practising Accountant
Experience	Board Member since 1967
	Appointed Chairman in 1970An accountant in public practice for over 30 years.
Interest in Shares	Refer to Table headed Directors' Interest in Ordinary Shares
	on page 2 which is to be read as forming part of this report.
Interests in Contract	Director of a company which provides financial and management
	services to the Chief Entity. Consultant to Garland Consulting
	Services which provides consulting and secretarial services to theChief Entity.
MR. GEOFFREY NANSCAWEN
Experience	DIRECTOR AGE 57
	Board member since 2001 and marketing executive of a subsidiary
	since 1994.Over 30 years experience in the gas industry occupying numerous
	managerial positions, particularly in marketing, sales and advertising.
	Member of various Committees within the industry, including the
	Australian Gas Association. Involved in the product development of
Interest in Contract	many local gas appliances as well as overseas products.Share options taken up during 1996/1997 in accordance with the Trust
	Deed of Sietel Limited " A Staff Equity Participation Plan" ("the
	plan"). These options expired on 28 February 2002.
MR. RICHARD REESMANAGING DIRECTOR AGE 54
Qualifications	Bachelor of Commerce (Melbourne University)
	Member of the Institute of Chartered Accountants in
	Australia.
Experience	Board Member and Chief Executive of the Chief Entity since 1981.
Interest in Contract	Has a service and share option agreement with the Chief Entity dated
	March 1984. Receives allowance for the provision of motor vehicles
	for use by the Economic Entity. Share options taken up during1996/1997 in accordance with the Trust Deed of Sietel Limited "A
	Staff Equity Participation Plan" ("the plan"). These options expired on
	28 February 2002.
Interest in Shares	Refer to Table headed Directors' Interest in Ordinary Shares on page
	2 which is to be read as forming part of this report.

+ See chapter 19 for defined terms.

$2.$

$\sim$ $\sim$

$\sim$ $\sim$

$\sim$

REVIEW OF OPERATIONS

Cost increases over the last twelve months, combined with competitive price pressures, in part, related to importers of competitive products benefiting from the Australian dollars relative strength which has reduced margin and therefore has reflected in reduced profit before tax from ordinary activities.

Management has focused attention on improvements in efficiencies via product design and process improvement but these measures take time to implement and yield lower gains than current price movements being experienced.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There have been no significant changes in the state of affairs of the economic entity during this period.

DIRECTORS' INTEREST IN ORDINARY SHARES AS AT MARCH 2005

	Ordinary Shares held	Urdinary Shares inwhich Directors' may
	in the name of the Director	have a relevant interest
Director
D.G.Rees	28.237	5.141.756
R.Rees	467,461	5,865,401

DIRECTORS' MEETINGS

During the financial half year the attendance at Directors' meetings was as follows:

	Meetings held	Meetings attended
D. G. Rees
G.E.Nanscawen
R. Rees

On behalf of the Board

Director, Mr. R. Rees Director, Mr. G.E. Nanscawen

Moorabbin, 30 May, 2005

$+$ See chapter 19 for defined terms.

SIETEL LIMITED DIRECTORS' DECLARATION FOR THE HALF YEAR ENDED 31 MARCH 2005

The directors declare that:

• a) The attached financial statements and notes thereto comply with accounting standards;
• The attached financial statements and notes thereto give a true and fair view of the financial $\mathbf{b}$ position and performance of the company and the consolidated entity;
• In the directors' opinion, the attached financial statements and notes thereto are in accordance $\mathbf{c}$ with the Corporations Law; and
• $d$ 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.

Signed, in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations $1.3W$

On behalf of the Directors

Director, Mr.R.Rees Director, Mr.G.E.Nanscawen.

Moorabbin, 30 May, 2005

$+$ See chapter 19 for defined terms.