overview of financial results

OVERVIEW OF FINANCIAL RESULTS
Synergy Equities Group Limited (“the Company”) refers to its Preliminary Final Report (Appendix 4E) for the year
ending 30 June 2008 released to ASX earlier today. For the benefit of Shareholders and the market, the Directors make
the following comments.
Operating Performance
The Company’s financial results for the financial year ended 30 June 2008, when compared to the financial year ended
30 June 2007, confirm that the Company continues to maintain a sound operating performance.
Going forward, the Board remains confident that the increased momentum and sales of SMX secure registered email
will reflect in a significantly improved operating performance by the Company during the current financial year.
Operating Loss
The Company’s goal of being revenue neutral was not achieved over the 2007 / 2008 financial year. The Board likens
the failure to achieve the goal of revenue neutral as a timing issue that does not reflect on the Company’s products &
services or marketing strategies. The mining boom conditions in Western Australia lead to a scarcity of appropriately
experienced IT (information technology) and other professional personnel which made building and stabilising a core
team a particularly arduous task - the scale and criticality of the Group’s IT operations demand that staff be hired to
whom the Company could confidently entrust the operation of its DataCentre, the support of its customers, the
demanding technical requirements of the SMX rollout and the expansion of its core IT support, project, management
and consulting service offerings. Furthermore, the Company also experienced first-hand the widely publicised
difficulties relating to the employment of “Generation Y” personnel. - 2 -

Residual Mining Assets
As part of the Company’s Deed of Settlement on 12 April 2005 with Mr Morellini, the Company is still to receive the
equivalent of $250,000 in shares in Meridian Mining Limited prior to its listing on the ASX.
Comparison with Previous Financial Year’s Results (ended 30 June 2008)
1) revenues from ordinary activities (net consolidated income including asset sales) increased by 24%;
2) operating (technology) sales revenue increased by 14%;
3) net consolidated costs increased by 27%;
4) administrative costs increased by 7%; and
5) staff costs increased by 42%.

……...the following graphs illustrate the Company’s comparative results for the past eight years: