Posts 90% Revenue Growth to Underpin new Strategic...

Posts 90% Revenue Growth to Underpin new Strategic Direction

Document date: Tue 27 Aug 2002 Published: Tue 27 Aug 2002 09:47:20
Document No: 148118 Document part: A
Market Flag: Y
Classification: Preliminary Final Report
EGLOBAL INTERNATIONAL LIMITED 2002-08-27 ASX-SIGNAL-G

HOMEX - Brisbane

+++++++++++++++++++++++++
Australian technology company eGlobal International Limited has today
(Tuesday August 27, 2002) announced a 91% increase in revenues from
sales and services to $17 million.

The increase in revenues represents a significant improvement on the
company's 2000-2001 financial year revenues of $9 million. eGlobal's
profit before tax for the 2001-2002 financial year was $898,000.

eGlobal Chairman Jim Goldburg said the result was most pleasing
considering the tough trading conditions in the technology sector
over the past 12 months and the costs incurred in cleaning up the
former Coms21 business and the eBet Limited 'in specie' share
distribution. He said the aforementioned costs were one-off costs
and, therefore would not be incurred by the company in the following
year.

"Although the past year has presented very challenging market
conditions, we have emerged as a much stronger company with a clear
focus on the increasingly important and fast-growing sectors such as
internet security and smart card technologies," he said.

"Most importantly we have also undertaken some significant product
development and restructuring that will place the company in a very
strong position, with these new emerging technologies being sold into
significant overseas markets in the years ahead. The doubling of our
revenues reflects the continued expansion of our blue-chip corporate
and government client base, which is supported by our commitment to
achieving cost savings throughout the business. With a clear vision
for expanding our presence in Asia and North America, we are
confident of continued sales growth and improved performance in the
current financial year."

In an important step towards its evolution into a global technology
group, eGlobal recently announced plans to acquire the Chinese
business operations of its associated Hong Kong company eGlobal
International Holdings Limited via the acquisition of eGlobal (Hong
Kong) Ltd subject to the completion of due diligence and eGlobal
shareholder approval.

The acquisition will mean, among other advantages, that all revenue
from Chinese smart-card projects will now flow back to eGlobal in
Australia.

During the past year, eGlobal has also established a strategic
foothold in North America through the formation of a joint venture
company, InsureNet America Inc, to supply an innovative new
smart-card-based motor vehicle registration insurance system to
American states.

eGlobal Managing Director Gordon Chalmers said China and North
America presented enormous growth opportunities for eGlobal. He said
eGlobal's tailored smart-card and internet security solutions were
perfectly suited to both markets and considerable energies had been
expended during the last six months to prepare a new range of leading
edge solutions for these markets.

"China and North America both have huge populations and the need for
managed information security and identification systems is
paramount," he said.

"In the aftermath of last year's terrorists attacks, there has been
an increased consciousness amongst government and corporate bodies
around the world of the personal and organisational security benefits
provided by smart-cards and improved internet security. Our
market-leading.internet security, mobile communication solutions and
smart-card technologies are ideally positioned to meet these growing
global needs.

"As indicated during recent announcements, the company has been
undertaking some exciting leading-edge hardware and software product
development over the last six months. While this has cost the company
significant investment, it is now clear that this been the correct
path to follow and indeed some exciting opportunities to
commercialise these new products are currently being tendered. These
are the first steps in some significant re-alignment of the eGlobal
business. Historically the company has been very reliant on
project-generated revenues from our professional service divisions.

"The current restructuring is all about moving strongly into markets
where our newly developed technologies offer recurring annuity
incomes. These income streams are based on clients' use of eGlobal
intellectual property and hardware products or their use of eGlobal
developed applications, which are hosted in our Data Centre. We are
in a number of discussions about technology product representation in
the region and also looking at a number of companies to partner and
other options so as to more rapidly grow the business."

Another significant milestone for eGlobal in the past year was the
distribution of the company's 40,000,000 shares in gaming group eBet
Limited.

Mr Goldburg said the successful eBet distribution signaled a fresh,
new beginning for eGlobal as a publicly-listed company in its own
right. He said eGlobal had since been able to focus all of its
energies and resources into establishing a clear market position in
the provision of internet security, enterprise application
integration and smart-card solutions.

"We now offer a total solution package in information technology
security for corporate and government clients," he said.

"The worldwide market for information security solutions is estimated
at approximately US$16 billion and is projected to grow by 25 per
cent per annum to approximately US$31 billion by 2005. The Australian
market is approximately $900 million and is also forecasted to grow
by 25 per cent per annum to $1.8 billion by 2005.

"Very few Australian companies can offer the complete set of services
offered by eGlobal, which differentiates its offer by having a strong
team of application software developers to supply a complete
technology solution stack."

ABOUT eGLOBAL

Visit http://www.eglobal.net for further information.

Further Information: eGlobal International Limited (ASX CODE:EGI)
Gordon Chalmers 0438 812614
Jim Goldburg 0407 289758
Alan Smith