ZICOM GROUP LIMITED — Capital/Financing Update 2008

Jul 2, 2008

ABN 62 009 816 871 Zicom Group Limited

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39 Aquarium Avenue, PO Box 7138, Hemmant, Queensland 4174 • Tel: (07) 3390 7722 • Fax: (07) 3390 7962

3 July 2008 Company Announcements Office Australian Securities Exchange Level 6, 20 Bridge Street SYDNEY NSW 2000

Acquisition of Balance 49% in Sys-Mac

The Group is pleased to announce that its wholly owned subsidiary, Zicom Holdings Pte Ltd, Singapore has signed an agreement with Mr Sim Juat Koon and his wife Mdm Goh Ee Gek, to acquire the remaining 49% shareholdings held by them in Sys-Mac Automation Engineering Pte Ltd (SMAE), effective on 1 July 2008, making SMAE a wholly owned subsidiary of the Group from that date. Mr Sim Juat Koon, is the Managing Director of SMAE.

The total consideration will be settled by the issue of 5m shares of Zicom Group Limited at S$0.3765 (A$0.28cents), credited as each fully paid, together with a cash payment of S$1,229,619.00 (A$945,860.77) after approval by shareholders at towards the end of August 2008. The cash payment is funded from internal resources.

Notwithstanding the current world economic environment SMAE has achieved an increase in turnover by more than 20% in the financial year ended 30 June 2008 over the preceding year.

Since its acquisition as a subsidiary of the Group on 30 June 2006, SMAE has successfully secured new multi-national (MNC) customers such as Hewlett Packard USA, Speedline Technologies USA and the Tecan Group, Switzerland, as additions to its established customer base. Hewlett Packard is a world leader in computers, printers and ink cartridges. Speedline is a world leader in semi-conductor equipment and adhesive and epoxy dispensing machines for surface mount. The Tecan Group is a world leader in the supply of equipment for the life science and clinical diagnostics industry. SMAE is currently enjoying recurrent orders from these MNC customers. Apart from these customers, SMAE continues to expand its local and regional customers base.

SMAE has, on 1 July 2008, relocated to new premises in Singapore. Its production floor area is now doubled, positioning itself to expand its total capability in line with industry growth as well as enabling it to undertake higher value added turn-key automation projects.

Precision engineering has been recognised as a critical capability that has enabled Singapore to achieve strong leadership in many sectors such as the manufacturing of hard disk drives, semi-conductor equipment, machine tools, aerospace, oil and gas equipment. In recent years, the leading Singapore Government’s public research agency the Agency for Science, Technology and Research (AStar), has forged strong partnerships with leading experts from various countries in the research and development of biotechnology, science and engineering. AStar has established infrastructure facilities to accommodate more than 2,500 scientists to carry out their work in Singapore. In support of industries that crystallize from these research efforts, increasingly stronger focus is being placed on the development of precision engineering in Singapore. MNCs are encouraged to enter into alliance with Singapore companies in manufacturing hi-tech products due to Singapore’s strong protection for intellectual property rights.

The growth of the precision engineering industry is expected to be robust and sustainable, given the impetus driven by the Singapore government policies. The Group is confident that this acquisition will strengthen SMAE’s capability to advance its products in the value chain and grow robustly in line with industry trends. The Group is therefore able to benefit fully from such growth.

The acquisition is being advised by independent experts BDO Kendalls based in Brisbane and will be subject to shareholders’ approval at a general meeting towards the end of August 2008.

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G L Sim Chairman

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