FY2006 Full Year Financial Results announced

Released: 15 Aug 2006

Results Summary

• Established clear positioning in the market as a leading specialist business applications IT service provider
• Ended June 2006 with 457 staff, 94 more than the same time last year (515 as at August 2006 post Clickstream acquisition)
• Diluted earnings per share increased to 17.1 cents, 69% higher than last year
• Record revenue (up 40%), EBITDA (up 50%) and NPAT (up 55%) resulting entirely from organic growth
• Record final fully franked dividend of 9.25 cents, up 68.2% on last year, making total dividend payout for the year of 16.75 cents
• Sydney’s EBITDA increased by 75.5% to $8.3 million, a 39% contribution to the Group result, up from 32% in June 2005
• Successfully opened Brisbane office during 2006
• Strong gross margin and overhead margin trends
• Maintained an active acquisition pipeline with Clickstream acquired in August 2006
• Commenced establishment of offshore delivery capability in India
• Continued improvement in customer service line ratios

Tuesday 15 August 2006: Australian business applications IT services provider Oakton Limited [ASX:OKN] today announced a full-year net profit after tax of $14.44 million for the year ended June 2006 - a 73.2% increase on last year’s post-goodwill net profit result.

Revenue increased by 42.4% to $76.83 million and EBITDA increased by 50.5% to $21.34 million during the period. Pre-goodwill NPAT rose 55.4% to $14.44 million.

Revenue, EBITDA and NPAT were all records and were achieved by organic growth, with no acquisitions recorded during the financial year.

The Oakton Board declared a fully-franked final dividend of 9.25 cents per share 68.2% higher than last year’s final dividend of 5.50 cents per share. The total dividend payout for the year is 16.75 cents, up 67.5% on last year. The dividend will be paid on 29 September 2006 with a record date of 1 September 2006.

Neil Wilson, Oakton’s Managing Director and CEO, said: “Oakton has continued to focus on the execution of its business strategy which is principally centred on gaining more market share with the best service offer in the business applications space.”

“Sydney growth continued to be very positive with a 75% increase on last year and an increased contribution of 39% to the total EBITDA result, up from 32% in FY2005. Brisbane has also commenced well with a number of local staff on the ground and a solid pipeline of engagements and opportunities”

“We believe the positive market conditions will continue and as our customer base, depth of services and service-to-customer ratio continue to grow, we expect to acquire more market share and to consolidate our position as a leading Australian specialist IT services provider.”

Oakton Chairman, Paul Holyoake, commented on the result saying “This is a great result and on behalf of the Oakton Board I would like to thank our clients, staff and shareholders for their continuing support.”

In August 2006 Oakton announced the successful completion of the Clickstream acquisition. This acquisition will contribute a minimum of $6 million revenue to the FY2007 result and will be funded from cash reserves without impacting dividend payout ratios. The Clickstream acquisition has taken Oakton’s total staff numbers to 515 up from 363 at the end of June 2005.

Oakton will continue to pursue acquisition opportunities and during the FY2007 will establish an offshore development centre in India to enable increased access to skilled resources at a price point competitive with global providers.

Oakton will hold its Annual General Meeting on Thursday 21 September 2006 at 10am in the Minter Ellison boardroom, Level 23 South Tower, Rialto Towers, 525 Collins Street, Melbourne.

**For more information, please contact: **

Neil Wilson
Managing Director and CEO, Oakton Limited
Tel: +61 3 9617 0200

About Oakton Limited: Oakton Limited is a profitable information technology company listed on the Australian Stock Exchange [ASX:OKN]. Capitalised at approximately $A290 million (August 2006). Oakton has provided Information Technology solutions for large and medium sized organisations for more than 18 years. Oakton provides a wide range of IT services centred around business systems. The services cover strategy and planning consulting, delivery services in solution design, custom software development, packaged software implementation, information management and system integration solutions. Oakton also provides a service offering to fully manage organisations’ operational systems. The company employs approximately 515 people [August 2006] and has offices in Melbourne, Sydney and Brisbane.

For more information refer to www.oakton.com.au.

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