CHAIRMAN’S ADDRESS 2005 After another eventful year for ICSGlobal, the company has emerged stronger than before, with the greatest potential ever to capitalise on the considerable investment so far made in Thelma. Whilst the financial result was an improvement on the previous year, it was non-the-less disappointing. Encouragingly, revenue and transaction volumes have continued to grow. In addition, significant progress has been made on key strategic initiatives, such as the UK based eCABS service, our pilots in the United States and our ongoing work with a number of Australian banks. Work on these initiatives has positioned us well to develop a number of new, and potentially very large revenue streams. The successful development and launch of the eCABS service for our partner MackenzieHealth was a major milestone for the company. This was our first international deployment of Thelma, and is a powerful demonstration to other potential international partners that Thelma can be easily applied in other countries. We continue to have a good relationship with MackenzieHealth, and we have already commenced exploring with them some additional transaction opportunities that they have identified. The United States is the world’s largest healthcare market with an estimated 30 billion electronic healthcare transactions per annum. As the result of a concerted effort by the Thelma team, the company recently received notification that Thelma complies with the US Health Insurance Portability and Accountability Act of 1996. HIPAA Certification is a mandatory pre-requisite for processing medical transactions in the US marketplace. A further demonstration of our ability to use Thelma in the US is our pilot with MedAccess Plus, which, we have just announced was successfully completed ahead of schedule. In addition to our work with MedAccess Plus, we continue to have discussions with a number of other parties in the US. ICSGlobal has been highly focussed in its efforts to develop what is now a unique capability to receive claim data in any format from the health service providers, and to deliver it in any format required by each of the funders of health services. A number of banks have recognised this capability and are working with us to add their settlement capability to our service offerings. In October 2004, the Australian Government created the Department of Human Services and placed greater emphasis on the quality and efficiency of the delivery of health services. Since then, there have been significant changes in Medicare Australia, which was formerly known as the Health Insurance Commission. The new initiatives being pursued by the Department of Human Services have the potential to radically increase the use of electronic claiming, and could represent a significant opportunity for ICSGlobal. In addition to pursuing these key strategic initiatives, which we expect to generate significant revenue in future years, the company is also aware of the need to improve its immediate financial performance. Importantly, the company was able to sign Medibank to a new three year agreement, which included the introduction of a subsidy by Medibank to encourage hospitals to take up the Thelma service. This is a tremendous vote of confidence in our service and Medibank’s support is greatly appreciated. In recent months there has been a resurgence of interest by health funds and hospitals in using our services. This trend is due to a number of factors including the re-signing of Medibank and the introduction of the Medibank subsidy, and also our growing list of fund and hospital reference sites. In the last three months we have signed up a further 7 health funds, taking our total number of funds to 21. On the hospital side, the introduction of the Medibank subsidy is proving to be very attractive to the hospitals. In regard to corporate governance issues, I have on other occasions stated that your board is committed to current standards of governance, and in particular the ASX Corporate Governance Guidelines and the CLERP 9 reforms. This year we have provided a more comprehensive Remuneration Report, which in addition to detailed figures, gives information about our policies and processes. There will be opportunity for discussion of this report shortly. Our remuneration policies and practices are designed to attract and retain high quality people, with packages that are appropriate in the marketplace and consistent with achieving the company’s goals. At this point, before asking Tim Murray to address you, I wish to on behalf of the Board, thank all members of the Thelma team for their continued dedication and contribution, and in particular to thank our shareholders for their continuing support. Together we look forward to this next year with an air of confidence and excitement. …......................................... Dean Pritchard Chairman
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