(Hong Kong, 4 March 2008) - Automated Systems Holdings Limited ("ASL" or "the Group") (stock code: 771), a leading IT services provider in Hong Kong, announced its third quarterly results for the nine months ended 31 December 2007. Compared with the same period last year, the Group's turnover increased 12.1% to HK$994.7 million and net profit was 85.4% higher reaching HK$55.4 million. Basic earnings per share for the period under review were HK18.75 cents.

During the three months ended 31 December 2007, the Group's profit before taxation amounted to HK$31.9 million, representing an increase of 142.6% as compared with the same period in FY07. The rise included a gain of HK$20.7 million from the Group's disposal of available-for-sales investment and the payment of a special bonus in the amount of HK$5.0 million for all supporting staff to reward and retain talents. Excluding such factors, the profit from operations for the third quarter amounted to HK$16.2 million, representing an increase of 22.9% against the same period in FY07.

Mr. Lai Yam Ting, Managing Director of Automated, said, "The Group made steady profit growth in the third quarter of FY08 mainly because of the strong sales of infrastructure system, stable recurring revenue from the service business and the one-off gain from disposal of investment."

Product and service revenues for the first nine months increased by 7.7% and 20.4% respectively, accounting for 62.9% and 37.1% of the Group’s total turnover. Commercial and public sector sales made up 58.2% and 41.8% of the total turnover respectively for the review period, against 58.7% and 41.3% in the same period last year.

As at 31 December 2007, the order book carried a total value of approximately HK$500.0 million, up 10% against the same period last year. The Group also maintained a healthy balance sheet with no debt and a working capital ratio at 2.14:1.The net cash of the Group amounted to approximately HK$250.1 million as at 31 December 2007.

The infrastructure business continued to perform well in the third quarter of FY08. The Group was awarded an over HK$26 million contract by a prestigious financial organization in Hong Kong to provide 60 units of SUN servers and a series of enterprise software products. The Group also secured other multi-million dollar deals including a contract to expand the datacenter for a leading Hong Kong-based international bank and a deal with a renowned regional bank to strengthen its financial trading system. The two deals worth approximately HK$10 million each.

During the third quarter of FY08, the Group continued to expand its solution and services business with satisfactory result. It secured several multi-million dollar contracts with a number of government departments under the Standing Offer Agreement for Quality Professional Services (SOA- QPS) arrangement. One of the contracts is a 4-year application maintenance services contract to provide comprehensive support services for a mission critical application for Customs & Excise Department. In the commercial sector, the Group's SWIFT services sustained satisfactory growth riding on increased demand for upgrade service in the banking community. The Group also won a tender to provide a Mobile Application System for housing management and 5-year application maintenance and training services for the Hong Kong Housing Authority. It also tailored solutions including Electronic Record Keeping System, Web-based Human Resources Management System, E-Procurement Portal and Web-based Ticketing System for clients in the public and private sectors.

The Group's overseas business enjoyed a 40.4% turnover growth in the first nine months of FY08. In the third quarter of FY08, our subsidiary in Guangzhou completed a million dollar project helping a Hong Kong-based multinational corporation upgrade its data centers in Guangzhou and Beijing. Our subsidiary in Thailand also delivered storage infrastructure setup and application development projects for a Hong Kong-based international bank. In Macau, the Group continued to penetrate the gaming industry and implemented Baccarat Score Board System for a famous casino operator.

Mr. Lai concluded, "The Group will continue to expand business in the region, mainly in Greater China, with Hong Kong as its centre of excellence. We will stay focused on pursuing expansion opportunities through strategic alliance and mergers and acquisitions. To generate stronger recurring income, the Group will keep exploring new opportunities for its services business and increase service contract wins associated with product sales."

"Anticipating challenges from rising cost, we plan to leverage resources in Mainland China to form local support teams and forge local business partnership so as to maintain our competitiveness. Given our solid performance in the first nine months of FY08 and proven business strategies, the prospect of the Group remains positive."