ZICOM GROUP LIMITED — Earnings Release 2008

Aug 19, 2008

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ABN 62 009 816 871 Zicom Group Limited

38 Goodman Place, Murarrie, Queensland 4172 • Tel: (07) 3908 6088 • Fax: (07) 3390 7962

19 August 2008

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

PROFIT GUIDANCE 2008

We are pleased to advise our profit guidance for the financial year ended 30 June 2008.

Performance

Subject to final audit adjustments, the Group expects its performance for the year ended 30 June 2008 to be satisfactory and are as follows :-

	Current Year	2007	Change
	S$ m	S$ m	%
Revenue from ordinary activities	125.52	93.61	+ 34.09
EBITDA	13.90	12.27	+ 13.28
Net operating profits after tax
minus non-recurrent items	9.49	7.33	+ 29.47
NPAT	8.70	7.76	+ 12.11
Earnings per share – Singapore cents	4.60	4.31	+ 6.73

The second half year was a period of credit crunch triggered by the USA sub-prime crisis and compounded by a sharp rise in cost of energy and raw materials. Notwithstanding these challenges, your directors are pleased to advise that the Group’s operations continue to show improvements and our growth prospects remain strong.

The average profit margin for the Group in the current year, as compared with the previous year is lower due to the following reasons :-

a) Revenue mix and Costs

Although revenue for offshore marine oil and gas equipment has increased, its proportion of total revenue as compared with revenue from construction equipment is lower. The Group’s gross margin has been impacted during the year by the unprecedented sharp surge in material prices as well as escalation in labour cost. These increases could not be readily passed down to the customers. Costs have appeared to have stabilized and as current selling prices are able to reflect such increases in costs to some extent, we expect margin to be maintained or improved.

Various shipments of our deck machinery have been delayed due to customers’ capacity constraints as well as delayed shipments of components from our suppliers who have experienced full capacity. The situation is improving as generally all manufacturers engaged in the marine industry have been expanding their capacity.

We are confident that the proportion to total revenue for the offshore marine oil and gas segment will increase in 2009.

The Group continues to focus on consolidating and globalizing our material procurements to maximize savings in costs.

1 Profit Guidance 2008

b) Relocation Costs

• During the year, the Group carried out expansion plans to increase its capacity and to position itself for future growth. Our new factory in Singapore for heavy duty deck machinery was completed in March 2008. This has now increased our output. Our precision engineering subsidiary in Singapore has relocated to new premises doubling its production space in July 2008. Our Australian subsidiary in Brisbane engaged in manufacture of concrete mixers relocated in May 2008, to new premises consolidating its assembly and servicing divisions together for the first time. The Group’s Thailand 20,000 m2 factory for the manufacture of concrete mixers, which has received Thai government’s tax incentives commenced construction in May 2008 and is scheduled for completion by the first quarter of 2009. To-date construction is on schedule.

The current year’s profits included non recurrent relocation costs incurred.

Financial Position

The Group’s financial position remains strong. It ended its financial year 30 June 2008 with cash and bank balances of S$14.51m. (2007:S$8.35m)

The Group’s acquisition of the remaining 49% in the precision engineering subsidiary, Sys-Mac Automation Engineering Pte Ltd effective from 1 July 2008 will be completed after the shareholders’ meeting on 28 August 2008.

Dividends

The Group paid an interim dividend of Australian 0.4 cents per share during the year. Your directors shall be approving a final dividend at no less than the interim dividend after audit has been completed.

Prospects

The fundamentals of the Group’s businesses remain strong and positive. Confirmed orders outstanding as at 30 June 2008 that are being carried forward total S$103.38m. This represents 82.36% of the revenue for the year just ended. We expect orders continue to be robust.

Barring no unforeseen circumstances or further deterioration to the world’s economy, we are confident to continue to perform better in the year ahead.

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G L Sim Chairman

2 Profit Guidance 2008