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GLOBO plc

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008 

Globo plc ("Globo", the "Group" or the
"Company"; LSE-AIM: GBO), a leader in the Information and Communications
Technology market in Greece, is pleased to announce its audited results for the 12 months
ended 31 December 2008. 

Key points:

• The results reflect strong organic growth during
  2008 with a particularly good performance
  in the public sector business segment.

• Revenues increased by 63% to €17.9m (2007:
  €11.0m).

• Operating margins remained healthy at 21.7% (2007: 26.8%).

• Profit before tax increased by 36% to €2.86m (2007:
  €2.10m).

• New Globo Mobile business unit was formed late
  in 2008 and its CitronGO! mobile
  product has been launched since the year end.

On outlook, the Chairman, Brett Miller stated:

"Having started 2009 with a number of new and
ongoing public and private sector projects, the current forward order book for
delivery in 2009 is approximately €7.18 million, up from €4.00 million last
year. While we have a solid pipeline of new business and anticipate initial
revenue contributions from CitronGO! during the second half of the year, the
combination of a traditional second half year bias in our results and the
current widespread economic difficulties means that forward visibility is less
than we would like. 

"Globo expects to be able to deliver another
year of growth in revenue in 2009. Although gross margins are likely to be
affected by the more cost conscious environment, it is expected that some growth
in profits will also be achieved."

CONTACTS

About Globo

GLOBO plc was admitted to AIM in December 2007.
Founded in 1997 by Konstantinos Papadimitrakopoulos and headquartered in
Halandri (a suburb of Athens),
Globo has established itself as one of the market leaders in the Greek ICT
market. It provides e-business
and telecom software products and related services to the private and
governmental sectors in Greece as
well as developing and operating broadband wired and wireless networks. It has
developed to become one of the largest e-business software and S.a.a.S. vendors
in Greece. For
further information please go to www.globoplc.com. 

  CHAIRMAN‘S STATEMENT

Introduction

We are pleased to be able to report strong organic growth
in revenue and profit in our first full year since
Admission to AIM. This
has been achieved against a background of deteriorating economic conditions,
particularly during the last quarter of the year.

Throughout last year and in the current year,
Globo has continued to develop its portfolio of
products and services, maintaining a good balance
between private and public sector
activities. More recently, we launched CitronGO!, Globo’s
‘cloud’ product for the mobile applications market at the Mobile
World Congress in Barcelona. It has
only been a short while since launch but initial
market response has been very encouraging.

Results and Finance

For the year to 31
December 2008 revenue increased
by 63% to €17.9 million (2007: €11.0 million). 
Operating margins remained healthy albeit they
decreased to 21.7% (2007: 26.8%) and
profit before tax increased by 36%
to €2.86 million (2007: €2.10
million). Profit
after tax during the period was
€2.38 million (2007: €2.00
million) and basic earnings per share were 1.8 cents
(2007: 1.8 cents).

Although cash generated from operations almost
doubled to €3.03 million
(2007: €1.55 million), overall
net cash flow was affected by significant delays in payments by customers,
particularly those in
the Greek public sector. This,
together with a higher
investment in product development of 
€5.58 million (2007:  €3.64 million),
resulted in an increase in net debt at
the year end to €9.83 million
(2007: €4.65 million). That
said, Globo had cash deposits of €3.2 million at the year end
(2007: €3.70 million) and adequate banking facilities for operational purposes.

Since the year end 
€2.15 million of outstanding Greek public sector receivables
has been paid and the Company expects to be able to
report further progress on cash receipts in due course. Additional information
is included in the Financial Review below.

Strategy

Globo has been developing its
e-business and related software products and services for both private and
public sector markets. During
2008, major archive digitalisation, e-business and
‘WiFi’ network contracts dominated its public sector
activities. In the private
sector, the focus of sales to
larger corporate clients has
been e-business products and services while the SME
marketplace has been developed through Globo’s Software as a Service ("SaaS")
offering and localised ‘WiFi’ services.  SME
activities have also been extended to certain neighbouring
regional markets.

The move into the mobile applications market
has arisen from Globo’s
existing technologies and intellectual property. This
is a truly ‘scalable’
service offering which we hope will create an opportunity to
expand internationally through distribution agreements
with the major operators and equipment providers in
mobile communications. To this end we formed
a new Globo Mobile business unit and acquired a
35% interest in, and management control of, ReachFurther Communications
Limited. 

Outlook

Having started
2009 with a number of new and ongoing public and
private sector projects, the current forward order book for delivery
in 2009 is approximately €7.18 million, up
from  €4.00 million last year. While
we have a solid pipeline of new business and anticipate initial revenue
contributions from CitronGO! during the second half of the year, the combination
of a traditional second half year bias in our results and the current
widespread economic difficulties means that forward
visibility is less than we would like. The
public sector is a significant customer of Globo and we intend to continue to build this element of
our business. However, we also plan to improve collection terms, as far as we
are able to, in order to improve cashflow and reduce financing expenses.  Globo
expects to be able to deliver another year of growth in revenue in 2009. Although
gross margins are likely to be affected by the more cost
conscious environment, it is expected that some growth in profits will also be
achieved.

Brett Miller

Non-executive Chairman

  CHIEF
EXECUTIVE OFFICER‘S REPORT

Introduction

I am pleased to report that Globo had a
successful year, delivering strong growth in all aspects of its business against
a background of trading conditions which became more difficult as the year
progressed. In particular, we were able to announce our intention to enter the
mobile applications market and CitronGO!
was launched in February 2009 at the Mobile World
Congress, the leading mobile communications exhibition
and conference held in Barcelona.  This
new development sets the cornerstone for faster
international development through strategic
partnerships with mobile operators
and other channels to address
the global market for mobile
users which currently counts more than 4 billion subscribers.

Operations

During 2008, Globo has
focused on developing its presence and competitive advantage in
all operational areas by investing strongly in both business and software
development. Globo’s performance for 2008 reflects the leading position of the
Group in its domestic markets with both corporate
and public sector customers with a range of
technology solutions, based
on the Company’s proprietary
software.

During 2008, Globo delivered its products and
services through two main companies:

• Globo
  Technologies S.A. delivers its CITRON branded e-business software products,
  digitalisation services and broadband services to both private and public
  sector customers on a licence or project basis. 

• Profitel
  Communications S.A. delivers the Group’s Software as a Service ("SaaS")
  offering combined with telecom services to the SME and corporate
  marketplace.

During November 2008,
Globo Mobile was formed as a new business unit and at
the year end acquired a 35% interest and full
management control of ReachFurther Communications Limited ("ReachFurther") for
an initial consideration of €0.45 million.  Based
in Cyprus, ReachFurther is a
value-added service provider and content aggregator for the mobile
communications market. The Group will develop its mobile applications operations
through Globo Mobile.

Markets

During 2008, total revenues from software
products and services (government, public and corporate
sectors) increased by 60.6%
to €15.14 million (2007: €9.43 million).
SaaS revenues delivered through Profitel contributed meaningfully for the first
time in 2008 and were  €0.62 million (2007: €0.10 million),
a substantial increase on the previous year when the
SaaS activities were in their formative stage.

A significant driver
of growth in the IT and telecom market
in Greece comes from funds provided by the
European Commission towards the narrowing of the digital divide in Greece when
compared with the more advanced Western European countries.  These
funds are supporting both public and private sector 
investments.  The
previous year saw significant
spending within the public
sector on IT and telecom
infrastructure as the third European Support Framework
was coming to an end.  Although
there are funds remaining from this framework, due to be
spent during 2009, the fourth Support
Framework (ESPA) has started already
with a total of  €24 billion
available for investment over the next 8 years.

  –
Government and Public Sector

Within the government and public sector, a
number of substantial contracts were completed by Globo during
the year including projects for the Greek Ministry of Mercantile Marine, the
Greek Ministry of National Education and Religious Affairs, the General State
Archives, the Hellenic Parliament, the Athens University of Economics and
Business and the
Pan-Hellenic Organisation for the Paraplegic
and Disabled.  These projects 
have included e-business
platforms, digitalisation services and broadband 
infrastructure.

Globo has positioned itself effectively as a company
able to win and deliver large scale governmental 
projects and has invested in processes, people, infrastructure
and IPR to improve the Group’s competitive
advantage.

– Corporate

The corporate sector is based around the
Group’s suite of CITRON branded e-business applications and broadband access
technologies (Internet Hotel and WiPLUS).  Significant customers
during the year included the Lambrakis Foundation,
Publicis Hellas, E-Shop.gr, Euroxx Securities, Newsphone, Angelicoussis Shipping
Group, Istron Bay Hotel, Philippion Hotel, Onassis Cardiologic Surgical Center,
Cosmote and the Agricultural
Bank of Greece.

Significant development has
been achieved in the Group’s
approach to the corporate sector utilising the
call centre operation
acquired in late 2007 in Arta (Western Greece)
from where customer leads are
initiated and followed up by trained sales staff throughout Greece.

– Software as a Service

Profitel, the SaaS unit of the Group, expanded
during the year, having launched its services during the second half of 2007. While uptake
of SaaS is still at an early stage and further
‘market education’ is needed, particularly in the SME sector,
the outlook for new contracts in 2009 is positive and we
anticipate that this should lead to an expansion
of the subscriber base and recurring service revenues.
The SME customer base increased by 85% during
2008 with an average revenue per customer
of  €400 per
month.  In addition to the SME
customer base, Profitel has succeeded in selling its SaaS into larger companies
including Pfizer Hellas, Wilo Hellas,
Naftomar Shipping and Trading and Goldenport Ship Management.

– WiFi Broadband
networks

Significant development has been achieved in Globo’s
activities in the WiFi broadband networks market:

• WiPLUS – Globo has
  expanded its network coverage of wholly–owned
  WiFi hot spots to more
  than 350.  These hot
  spots are located in city and
  resort hotels where there is
  an increasing market for those
  using WiFi enabled mobile handsets.
  The revenue sharing model operated with the hotel owners delivers
  a good return and positive cash flow from Globo’s
  investment in its WiPLUS network.

• Public hot spots –
  Globo, in partnership with PC Systems S.A., has won one
  of the biggest WiFi project in Greece from
  the Information Society S.A. to install 160 public WiFi hotspots to
  provide free wireless broadband internet
  access for members
  of the public.  These
  hotspots are being set up in
  central squares, railway stations, harbours and airports throughout Greece.
  Globo will provide a specialised software platform for user access control,
  security, network management and the extraction of statistical reports on the
  use of wireless internet access by users of the hotspots.

• i-SET (Interactive
  Services for Electronic Tourism) – Globo is the main technology provider for the
  i-SET European Commission project.  The Company has
  installed and operates 100
  WiFi hotspots in Spain, Italy, Greece and Cyprus, providing wireless
  internet access and interactive
  services related to tourist activities to hotel customers.  The i-SET
  Network is running on Globo’s proprietary WiPLUS
  infrastructure.

– Mobile applications

During 2008, the focus for mobile applications
was the development of CitronGO! in preparation for the commercial launch early
in 2009.  The underlying
technology for CitronGO! is based on Globo’s existing e-business and SaaS
technologies.  CitronGO! is a
SaaS product which uniquely integrates onto the screen of a device (mobile
handset, PDA or PC) communication and social networking services, covering
personal and professional requirements.  The
new mobile business unit commenced formal operations early in 2009 following the
acquisition of Globo’s interest in ReachFurther, as set out above.

The initial strategy for
the Group’s mobile operations
is focussed on developing strategic partnerships with 
mobile network operators, internationally,
in order to access their customer
base. CitronGO! will operate on
most available handset types in
the market (Symbian, Java, Windows Mobile, Blackberry, Android and soon on the iPhone)
and is fully customisable to
the requirements of any local market.  Globo believes 
CitronGO!‘s extended
functionality gives it a significant edge over
competing products, particularly in
the feature phone market, to
address the global community of mobile subscribers by
offering a seamless interaction
between internet services
and applications (email, social networking, instant messaging, and
much more) while on the move.

Following the Mobile
World Congress held in Barcelona in
February 2009, where the
CitronGO! service was launched, the Company has initiated
a number of encouraging discussions with mobile network operators
internationally. 

– International

International operations have made progress
during the year under review, albeit at a slower pace than had originally been
planned.  An operating
subsidiary has been established in Romania in
order to market SaaS and planning continues for direct operations in Bulgaria at
a later stage. Since the year end, Globo now has a direct presence in Cyprus as
well as an existing reseller network.

Additionally, the
opportunities created by CitronGO! in due course are expected
to expand the Group’s international activities.

Products and Services

Globo believes that future growth and achievement
of above industry average margins
will come from innovative products and services that capture a user’s
preference for either business
or personal needs.  Globo has
continued to invest in both
existing and new products.

– Mobile applications

By the end of 2007 Globo had foreseen
the increasing potential demand for mobility
in terms of user
requirements.  This provided
the impetus that has led to the development of Globo’s mobile
applications  and a
new suite of products.
During 2008 two significant developments have been achieved.

• Citron Mobility Platform – Globo has developed
  a complete toolset of components, services and client software to enable
  interaction of mobile phones with third party services and applications.  This created
  the foundation for the development of CitronGO! as a ‘vertical‘ 
  product and for future
  products that will either offer mobile interfaces to the existing Citron
  E-Business software family or in new products that will be developed to
  exploit market trends.

• CitronGO! – The first version of the product
  was developed in less than 14 months and after its release in February 2009, it
  has captured the interest of several industry ‘players‘.  The
  first version of CitronGO! provides six services
  (push email, push contacts, push calendars, instant
  messaging, folders and social
  networking) which interact with several well known internet services and
  applications.  Following this
  development Globo aims to
  extend CitronGO! compatibility with other applications and services and to
  add new applications such as RSS feeds and content
  distribution in order to create more value to the end user.  The
  first version of CitronGO! is offered as a service to mobile
  operators, but a version
  of the software will be offered on licence
  to companies wanting to
  implement mobile collaboration and messaging within their own closed corporate user
  group.

– E-business products

Further development on the Citron E-Business
family has taken place, adding
new functionality and modules
to the existing product suite in
order to fulfil customer requests and market trends.

– Software as a Service

Globo has expanded its Citron ERP and CRM
solutions to support the SaaS
delivery model and introduced
the required security features needed by customers with data
hosted by a third party. These
two software products are also offered as
a fully local (to the customer premises) solution with a recurring monthly licence
through the Citron Licensing Server infrastructure with full billing
information  retrieved during the licence
update process.

– Broadband access

GNE on Cisco AXP – The
Globo Network Engine (GNE) software manages the
uninterrupted provision of internet
services over public hotspot zones.  GNE
software is already being utilised
in hotspots used by Globo’s Internet
Hotel and WiPLUS applications.
The new GNE-Cisco AXP
solution includes RADIUS 
support, DHCP and GNE-Update servers over the AXP-Cisco
board. This implementation on
Cisco equipment  has provided
a new opportunity for Globo
to access Cisco’s international client
base. 

– Digitalization infrastructure

Globo has invested in infrastructure related to
the delivery of digitalization
projects including Zeutschel
scanning equipment and software, servers, digital storage facilities and
software to manage large digitalization projects.  This
investment puts Globo in a favourable position to win new
digitalization projects that that can be serviced using
the Company’s wholly owned production capacity.

People

Over the past year, Globo’s direct
headcount has grown from 62 persons
at 31 December 2007 to 104
persons at 31 December 2008. 

I would like to thank each employee for their
hard work during the year and their continuing commitment.

  Key
tasks for 2009

Globo’s has three key
priorities for the current year.  Firstly,
we aim to maintain the excellent momentum in our main businesses, albeit against
an uncertain economic background. We will need to focus
more on cash flow in these
difficult times in order to support our growth. However, we believe
that the flexible nature of our SaaS service will prove
attractive to both corporate and SMEs in a time of
recession – and is an example of what is now termed a ‘cloud’ application.  Thirdly,
emphasis will be placed on commercialising CitronGO!
through partnership and distribution agreements.

Investment in Globo’s suite of products and
services will continue with the clear ambition of emerging from the current
recession as a strong, growing and profitable business.

Costis Papadimitrakopoulos

Chief Executive Officer

  FINANCIAL
REVIEW

In 2008, Globo delivered a good financial
performance with substantial growth in revenues,
strong profitability and positive operating cash flow. 

Revenues reached
€17.93 million, an increase of 62.6 per
cent (2007: 
€11.03 million).  The increase
in revenue was generated by
organic growth in both the private sector (7
per cent growth from 2007) and
public sector (262 per cent growth from
2007) segments of the Group.  The majority of revenue (87.9
per cent) consists of sales of
the Group’s own products and services while 12.1 per cent of the revenue arises from
sales of third party goods.

Gross profit increased by 53.1 per
cent in 2008 and reached €7.89
million (2007: €5.14 million), delivering
a gross margin of 43.9 per cent (2007: 46.6 per cent). 

Operating expenses excluding depreciation and
amortisation were €10.64
million, representing an increase of 87.3 per cent (2007: 
€5.68 million) in support of the increase in revenue.  Depreciation
of tangibles and amortisation
of intangibles was 
€3.60 million (2007: 
€2.54 million) reflecting the
significant product development undertaken both in 2007 and 2008.  Operating
profit increased by 31.4 per cent to €3.89 million (2007: 
€2.96 million), delivering an operating margin of 21.7 per cent (2007: 26.8 per
cent), while EBITDA increased by 35.7 per
cent to €7.49 million (2007: €5.52 million).

The net interest charge for the year was €1.02
million, an increase of €0.17 million, as the Group used financing facilities for
working capital purposes, mainly on significant public sector contracts. 

Profit before tax for 2008 was €2.86 million, representing
an increase of 36.2 per cent (2007: 
€2.10 million). The taxation charge for the year was €0.48 million (2007: €0.10
million) which relates predominantly to deferred taxation as the Group has taken
advantage of special tax relief incentives available
in Greece. 

Basic earnings per share remained at 
€0.018 (2007: €0.018). 

Total assets grew significantly to €38.39 million
at 31 December 2008 (2007: 
€26.62 million). Of total assets, €13.56 million were held in non–current
assets, €19.84 million were
held in trade receivables,
prepayments and other current assets and €3.25 million were cash and cash
equivalents. Equity increased by 19.8 per
cent to €13.85 million and total liabilities increased by 62.9 per
cent to €24.55 million.

Trade receivables and prepayments increased by
€3.83 million, primarily due to the delay in the scheduled collections from the
public sector projects at the end of the year. Due to the global financial
crisis, the Greek Government asked the European Union for an extension for
payments on the Third European Framework projects, in which the E.U. is
contributing approximately 75% and the Greek state 25%.  As a result of the
delay in payments on the invoiced public sector projects anticipated collections
of €4.99 million (which were collateralised against
debt) and an associated reduction in borrowings did not materialise by
the year end. The E.U. has
granted an extension of the payments for public sector projects until 30 June
2009 and the Group expects that the outstanding amounts will be recovered by
this date. We are pleased to report that some progress has been made
in this regard in the first three months of 2009 with
€2.15 million having been collected in respect of public sector contracts.

Increased profitability and well-controlled
project management resulted in a significant
increase in cash generated from operations by 95.5 per
cent to €3.03 million (2007:
€1.55 million) while net cash
from operations reached €1.81 million, an increase of 170.1 per
cent (2007: €0.67 million).
Net cash used in investing activities was €6.40 million, reflecting
the significant investment in product development and infrastructure.

Dimitris Gryparis

Finance Director

  CONSOLIDATED
INCOME STATEMENT

For the Year ended 31 December 2008

  CONSOLIDATED
BALANCE SHEET

At 31 December 2008

  STATEMENT
OF CHANGES IN SHAREHOLDERS’ EQUITY

  CONSOLIDATED
CASH FLOW STATEMENT

For the year ended 31 December 2008

  NOTES
TO THE FINANCIAL STATEMENTS

1.    General
Information

The Consolidated Financial Statements of Globo
plc ("the Company") consists of the following companies; Globo plc, Globo
Technologies S.A., Profitel Communications S.A., Globo Mobile S.A., Globo IT and
Telecom Services SRL and Reachfurther Communications Limited ("the Group").

The Parent Company, Globo plc, formerly Israeli
Acquisitor 1 plc, was incorporated in July 2005 in the United
Kingdom under the Companies Act 1985 and was admitted
to trading on the PLUS Market in September 2005. On 14
December 2007, the Company changed its name from
Israeli Acquisitor 1 plc to Globo plc and listed on the AIM Stock Market in London.
Its registered office address is 39 Cheval Place, London SW7
1EW, United Kingdom. 

(a) Globo Technologies S.A. and Profitel
Communications S.A.

Globo Technologies S.A. is engaged in the
provision of e-Business and Telecom Software Solutions
and related professional services to the public and private sector, primarily
in Greece. Globo Technologies
S.A.’s registered office is located in Athens,
at 37A Psaron Street & 78 Aristotelous Street, Chalandri, Greece.
Globo Technologies S.A. is a private company, incorporated in Greece in
November 2000. Globo Technologies S.A. owns 100 per cent of Profitel
Communications S.A.  

Profitel Communications S.A. provides business
communication services. Profitel Communications S.A purchases software
applications from Globo Technologies S.A. in the form of "Software as a Service" 
(S.a.a.S.) and, together with central infrastructure services, integrates them
with third party telecom services. Profitel Communications S.A.’s registered
office is located in Athens,
at 37A Psaron Street & 78 Aristotelous Street, Chalandri, Greece.
Profitel Communications S.A. is a private company, incorporated in Greece in
October 2005.  

Prior to 14 December 2007, Globo Technologies
S.A. was the ultimate parent company of the Group. On 15 November
2007, Globo Technologies S.A. entered into an
Acquisition Agreement with the shareholders of Globo plc, in the form of a
binding memorandum of understanding under Greek law. This agreement was to
acquire the entire issued share capital of Globo Technologies S.A. by means of a
contribution in kind by each shareholder of their shares in Globo Technologies
S.A., in exchange for a total of 110,000,000 new ordinary shares in Globo plc,
being the Consideration Shares. On 14 December 2007, Globo plc became the
ultimate parent company of the Group through a share exchange and was admitted
to the AIM stock market in London.
As the shareholders of Globo Technologies S.A have control of the legal parent,
Globo plc, in accordance with IFRS 3 "Business Combinations" the transaction has
been accounted for as a reverse acquisition. Consequently, although the
Financial Statements are prepared in the name of the legal parent, they are in
substance a continuation of those of the legal subsidiary with its assets and
liabilities measured and recognised in the consolidated Financial Statements at
the pre-combination carrying amount.  

(b) Formation of Globo Mobile S.A. and Globo IT
and Telecom Services SRL

Globo Mobile S.A. and Globo IT and Telecom
Services SRL were formed on 18 November 2008 and 16 July 2008 respectively. 

Globo Mobile S.A. will commercialize the
CitronGO! service globally via the creation of an extensive partnership network
with major players. Globo Mobile S.A.’s registered office is located in Athens,
at 37A Psaron Street & 78 Aristotelous Street, Chalandri, Greece.
Globo Technologies S.A. owns 100% of Globo Mobile S.A.

Globo IT and Telecom Services SRL is engaged in
the provision of computer programming, consulting and related activities. Globo
IT and Telecom Services SRL’s registered office is located in Sos.
Bucuresti-Ploiesti No 1A, Bucharest Business Park,
Intrarea A. et.1, Birou 125, sector 1 Bucuresti, Romania. Globo
Technologies S.A. owns 99% and Profitel Communications S.A. owns 1% of Globo IT
and Telecom Services SRL.

  (c)
Acquisition of Reachfurther Communications Limited

35 per cent of the equity shares of
Reachfurther Communications Limited were acquired on 31 December 2008.
Reachfurther Communications Limited is a
content/service aggregator/enabler with an extensive 
content/service portfolio that caters to the entire mobile and fixed
telecommunications market and was established in 2004 by a team of
telecommunications professionals with many years experience in the field of
management & advisory of telecommunications operators in selected European &
Middle Eastern countries.

Reachfurther Communications Limited’s
registered office is located in 31 Evagorou Street,
4th Floor, Office 43, 1066 Nicosia, Cyprus.
Globo Mobile S.A. owns 35 per cent of Reachfurther Communications Limited.

2.    Basis
of Preparation

The Financial
Statements have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union ("IFRS"), IFRIC
interpretations and the parts of the Companies Act 1985 applicable to companies
reporting under IFRS. The Financial Statements have been prepared under the
historical cost convention.

The preparation of Financial Statements under
IFRS requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group’s
accounting policies.

The preparation of Financial Statements in
conformity with IFRS requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial information, including the
reported amounts of revenues and expenses during the reporting period. Although
these estimates are based on management’s best knowledge of current events and
actions, actual results may ultimately differ from those estimates.

3.    Revenue

Revenue is mainly derived from sales of Group’s
software products and services to private and public sector customers based upon
contractual agreements. Sales of third party goods which are treated as a
complement to the Group’s software products and services are recognised
according to the relevant contractual obligations.

  4.    Earnings
per Share

Basic earnings per share are calculated by
dividing the profit after tax attributable to equity holders by the weighted
average number of ordinary shares in issue during the period.

Diluted earnings per share assumes that options
and warrants outstanding at 31 December 2008 were exercised at 1 January 2009,
for options and warrants where the exercise price was less than the average
price of the ordinary shares during the period. A calculation is done to
determine the number of shares that could have been acquired at fair value based
on the monetary value of the subscription rights to outstanding share options.
The number of shares calculated above is compared with the number of shares that
would have been issued assuming the exercise of the options and warrants and the
issue of the shares as part of the deferred consideration for the acquisition of
a subsidiary undertaking. On this basis, the calculation of diluted earnings per
share is based on the profit attributable to ordinary shareholders divided by
132,118,740 shares (31 December 2007: 111,357,897).

5.    Cash
Generated from Operations 

Group 

END

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