erg settles liability in europe break even tr

Sydney - Thursday - May 22: (RWE Australian Business News) - ERG
Ltd (ASX:ERG) has concluded an agreement to settle an outstanding 7.6m
Euros liability to Belgian company ATOS Worldline SA relating to ERG's
acquisition of Proton World International in 2001.
Under the settlement ERG will pay ATOS Worldline 1m Euros in
June 2008 in full and final settlement of all amounts outstanding in
relation to the liability.
The settlement will result in ERG booking a gain on the
settlement of about 6.6m Euros ($10.8m) in its accounts for the year
ending June 30.
ERG also announced that since December 31 2007, the group had
otherwise traded on a break-even basis at the net profit level and
expected this position to broadly continue until the June 30 2008
balance date.
From May 1 until July 31 - at which approximate time the group
expects to hold an extraordinary meeting of shareholders to vote on a
proposed restructure announced on April 18 - ERG expects to generate $6m
of net cash-flow from operating activities as project milestone payments
are received.