full year results highlights, page-14

AEP on IBA, from their annual results dated 28August 2008:-

"Our current investee companies, IBA Health, Signature Security and Baycorp, are all in defensive sectors and the performance of each of the businesses has been extremely pleasing. Importantly, the outlook for each of the businesses in FY09 remains strong”, he added.

Since commencement of the business in 2004, AEP has invested over $600 million in private equity and public market transactions. Two profitable divestments have been completed with the profits distributed to shareholders and reinvesting of the replenished capital base has commenced.

Economic circumstances have changed and as a consequence we believe that a number of attractive investment opportunities are emerging. The Manager has a solid pipeline of opportunities that are currently being assessed”, Mr Moran said.

The Board has closely scrutinised the carrying values of AEP’s investments as part of the year end process. The carrying values of each of IBA Health, Signature Security and Baycorp have been confirmed. The conclusions were reached having regard to:

ƒ the investment thesis and medium term investment horizon of AEP;

ƒ the business performance and market positioning of each investee entity;

ƒ current and budgeted earnings of each investee entity; and

ƒ valuation multiples for comparable businesses.

In the case of IBA Health, the ASX trading price of its shares has fallen since AEP closed its investment on 31 October 2007. IBA Health has been through a transformational year, taken forward by the AEP investment which was used to complete the acquisition of the much larger UK based iSOFT plc. As announced by IBA Health on 25 August 2008, IBA Health has successfully completed the integration of its business with iSOFT, delivered FY08 results consistent with market guidance and indicated a strong and growing outlook. These factors have been important in the consideration by the directors in reaching a conclusion on the carrying value of IBA.

Mr Moran said: “Our team has been closely involved in the rapid restructure and integration of IBA Health and iSOFT. We have been active with the Board of IBA Health in supporting and bolstering the IBA Health management team and in ensuring that the all important customer relationships were strengthened throughout the period. We have good visibility of the operations of IBA Health
and believe that over our investment timeframe of 3 to 5 years, the real benefits of the iSOFT transaction will be recognised.”