lost $39 mill in last last half - woof

ERG lost $38.83 million in the half-year to December
31, compared with a net profit of $17.87 million a year earlier.

Revenues fell 33.9 per cent to $93.82 million from $142 million. Loss per share was 6.10c, against earnings per share of 3.50c.

The result was foreshadowed in a guidance statement released on February 21 2006.

The loss reflected increases of about $18 million in the
estimated cost to complete major supply contracts in Sydney, Seattle, Washington, Stockholm and Gothenburg.

Also, as reported on February 21, ERG has written down the value of Multi Application Smartcard System (MASS), an intangible asset, by about $19 million to a written-down value at December 31 2005 of $16.42
million. Consequently, future amortisation costs will decline by around $3.8 million a year.

ERG has paid no dividend since 2001.