TECHNOLOGY ONE LIMITED — AGM Information 2004

Nov 4, 2004

ASX RELEASE

Market consolidation creating opportunities for Tech One

At the Technology One AGM today, Executive Chairman Adrian Di Marco said Oracle's hostile takeover bid for Peoplesoft is creating fear, uncertainty and doubt in the enterprise applications market, and creating opportunities for Technology One.

"With the European Union and US Justice Department giving a green light for Oracle's takeover of Peoplesoft, those organisations with a Peoplesoft or JD Edwards product are readying themselves for the likely fallout, " Mr Di Marco said.

"The long-term future for product support and R&D will not be positive for Peopelsoft customers - Oracle will not be able to support numerous R&D teams building overlapping products, and JD Edwards customers, who have just been through the Peoplesoft takeover, are bracing themselves for even more uncertainty," he said.

At the Technology One User Conference in October, Gartner Senior Vice President and Research Fellow Asia Pacific, Bob Hayward, confirmed the market is looking for a software provider that takes complete accountability for its software

Mr Di Marco said Technology One is the only Enterprise Applications vendor in the mid-market to provide a onestop shop solution where it develops, markets, implements and support all its own products, providing customers with a guarantee for the future product direction.

"In a consolidating market, this business model will help us to maximise opportunities in the long-term," he said.

Mr Di Marco also signalled the launch of Technology One's Connected Intelligence series, which will deliver deeply integrated business solutions that meet all of an organisation's needs. The company has investigated significant R&D into the next generation applications, targeted to key vertical markets, such as retail, local government, student administration, financial services, HR and payroll.

"Companies are looking for one totally integrated solution, with one user interface, across all of their business systems," Mr Di Marco said.

"Connected Intelligence will provide a solution that goes far beyond the simple 'drill down' capabilities of HTML or client/server based applications," he said.

"The solution will provide a single login, workplace and common alert, workflow and KPI engine across the whole organisation.

"Whilst it will take us time to bed down the release of Connected Intelligence in the 2005 year, we expect the clear benefits of this technology to significantly increase our win rate in the long term."

Summary of 2004 Financial Year Performance

Technology One Limited delivered a Net Profit Before Tax result of \$13.11 million, up 30% on the previous year. Demand for the company's products and services increased, with the addition of 70 new clients.

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Highlights of the announcement are as follows:

• Net Operating Cash Flows of \$12.3 million, up 29%
• EBITDAR* of \$23.22 million, up 15 percent $\bullet$
• Revenue** of \$50.55 million, up 7 percent $\bullet$
• R&D Expenditure (fully expensed) of \$9.55 million, up 3% and representing 19% of Revenue**
• Net Profit Before Tax of \$13.11 million, up 30 percent
• Net Profit After Tax of \$9.48 million, up 35 percent
• Earnings Per Share of 3.17 cents, up 38 percent
• Dividend Per Share of 2.85 cents, up 14 percent
• *Earnings before interest, tax, depreciation, amortisation and R&D
• ** Revenue excluding interest

The slides from the AGM and the full annual report are now available in the Investor Relations section of the Technology One website - www.TechnologyOneCorp.com

About Technology One

Technology One is one of Australia's largest publicly listed software companies. Its focus is the design, development, implementation and support of powerful, enterprise wide software applications using Client Server, Internet and eBusiness technologies for the corporate and novernment sectors

In particular, Technology One delivers totally integrated, powerful enterprise solutions developed to meet the specific requirements of vertical markets, including: Financial Management and Accounting (Finance One), Higher Education and Universities (Student One), Retail (Retail One), Wholesale and Distribution (Sales One), Human Resource Management (People One), Local Government (Proclaim One),

Technology One also provides large scale, fixed time, fixed price custom software development services through its Project Services Group to meet the exact requirements of a specific customer, using Internet, eBusiness and Client Server technologies. Technology One employs approximately 300 staff in Australia, New Zealand and Malaysia.

Key Facts

• Technology One has been continually profitable since 1992, returning compound annual growth of 33% Net Profit After Tax, and 30% Revenue
• Technology One is a Top 300 Publicly Listed Company
• The company has 10 offices in three countries

Contact Details

Adrian Di Marco, Executive Chairman, Phone (07) 3377 7300 Stephanie Wilson, Public Relations Consultant, Phone (07) 3377 7518, Mobile 0405 133 871

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