(Hong Kong, 30 June 2008) – Automated Systems Holdings Limited (“ASL” or “the Group”) (stock code: 771), a leading IT services provider in Hong Kong, announced its FY08 annual results for the year ended 31 March 2008, with turnover amounting to HK$1,393.3 million, up by 9.3% against last year, and net profit standing at HK$76.2 million, surged by 42.2%. Basic earnings per share for the year under review were HK 25.76 cents.

During the year, the Group made a gain of HK$20.7 million on the disposal of available-for-sale investments and paid a special bonus totaling approximately HK$5.0 million to all supporting staff as reward and to retain talents. Excluding such factors, the Group’s profit before taxation for the year amounted to HK$73.6 million, representing an increase of 19% compared with FY07. The Group’s turnover for the final quarter of FY08 was HK$398.7 million, 2.9% more than that of the same quarter last year. Profit before taxation for the fourth quarter of FY08 was HK$28.4 million, increased HK$1.9 million compared to the same quarter of FY07.

Mr. Lai Yam Ting, Managing Director of Automated, said, “We are pleased to achieve another solid set of results and strong profit growth. Our service business recorded satisfactory growth and continued to earn steady and stable revenue. In addition, our infrastructure business sustained its performance in the past year through materializing a number of multi-million dollar projects during the year.”

Product and service revenues for the year increased by 4.9% and 17.9% respectively, accounting for 63.8% and 36.2% of the Group’s total turnover. Commercial and public sector sales made up 55.6% and 44.4% of the total turnover respectively for the review year, against 53.2% and 46.8% last year.

The Group maintained a healthy balance sheet with net cash of approximately HK$398.7 million as at 31 March 2008. The increase in cash flow was primarily attributable to sale proceeds from the disposal of available-for-sale investments and collection from significant projects that were closed and completed in the fourth quarter. The order book carried a total value of approximately HK$550 million, up 10.0% against last year. The Group’s working capital ratio stood at 1.9:1.

The Board of Directors recommends payment of a final dividend of HK 6 cents per share (FY07: HK 6 cents per share), and a special dividend of HK 11 cents per share (FY07: HK 6 cents per share). The total dividend for the year ended 31 March 2008 thus amounts to HK 21 cents per share (FY07: HK 15 cents per share) including the interim dividend of HK 4 cents per share already paid earlier in the year.

The Group continued to achieve stable stream of income and development of the service business. Such growth was primarily due to the recurring revenue from orders for maintenance services, managed services and high-value professional services. During the year, the Group continued to be awarded a number of sizable Standing Offer Agreements (SOAs) from various government departments to provide a broad range of Information Technology Professional Services. In the banking and finance sector, the Group continued to capture SWIFT services contracts mainly arising from SWIFTNet Phase 2 migration and the replacement of Real-Time Gross Settlement (RTGS) with the new SWIFTNet-based messaging platform. Riding on its status as an accredited SWIFT Service Partner in Hong Kong since 2002, the Group has provided SWIFT services to more than 85 financial institutions in Hong Kong and 10 financial institutions in overseas to date.

Furthermore, the Group continued to focus on promoting a wide range of tailor-made solutions. ASL was awarded a contract to provide a Mobile Application System for housing management and 5-year application maintenance and training services to the Hong Kong Housing Authority. In the fourth quarter, the Group was awarded two additional multi-million dollar orders from a government department to enhance a Web-based mission critical system with improved functionality. The Group also provided the Hong Kong Federation of Youth Groups and the Vocational Training Council with customized solutions, namely a Membership Relationship Management System and a System Monitoring Solution, respectively.

During the year under review, ASL’s IT infrastructure business kept performing well driven by continuous strong demand for new infrastructure system and system enhancement to improve operational efficiency and customer service in the public and private sectors. In the public sector, the Group won a number of sizable infrastructure deals including a 48-month contract with a government related organization regarding the supply, installation and maintenance of Internet infrastructure and network security systems. From the commercial sector, ASL was awarded a multi-million dollar contract to provide approximately 60 units of Sun servers and enterprise software products to a well-regarded financial organization.

Overseas business reported satisfactory performance during the year with turnover rose 16.4% compared with last year, contributing HK$111.3 million to the Group’s total turnover. In Macau, the Group continued to penetrate the gaming industry by providing Baccarat Score Board (BSB) System, Playing Card Tracking System as well as SAN storage and backup services to casinos. To date, ASL boasts an 80% lion share of the BSB System market in Macau with more than 1,800 gaming tables deployed. The Group’s Guangzhou subsidiary won a contract to provide IT infrastructure, networking and helpdesk support services to a Hong Kong-listed company’s major offices in Chengdu and Xiamen, and completed a million-dollar project to upgrade the data centers of a multinational corporation in Guangzhou and Beijing. In Taiwan, the Group has completed a project to provide 7 x 24 data center maintenance services for Retail Support International to support operational efficiency. The Group’s subsidiary in Thailand continued to garner infrastructure and services contracts from both the private and public sectors. During the year, the Group secured a multi-million dollar contract from the Bank for Agriculture and Agricultural Cooperatives to deliver a large order of desktop computers and printers for all its branches in Thailand.

Mr. Lai said, “This year marked ASL’s 35th anniversary and the Group has been listed on the Hong Kong Stock Exchange for more than 10 years. We have been continuing, and will do so, to maintain Hong Kong as a center of excellence and expand in the regional market with special focus on Greater China by forming alliances with strategic vendors. In addition, we will also strive to pursue expansion opportunities in Taiwan by forging closer vendor relationship. Recently, the Group has extended partnership with Symantec and F5 to Taiwan as well as passed Sun Co-Sell/Co-Deliver Provider (CCP) assessment for being authorized as a Sun CCP services partner expected in the second half of the year.”

Armed with proven servicing capabilities and expertise in refining service offerings, the Group also anticipates encouraging increase in orders in the year ahead. Subsequent to the year end, in June 2008, the Group secured a multi-million 5-year IT maintenance and support services contract from one of the largest government departments. This contract includes 7 x 24 hardware and software maintenance services that cover 40,000 pieces of equipment at over 100 customer sites. The Group will also dedicate support teams to provide services to the approximately 32,000 users concerned.

Mr. Lai concluded, “Looking ahead, we will strive to reach new heights by providing comprehensive solutions and services to our existing clients in Hong Kong, Macau, Taiwan, the PRC and Thailand, and drawn on our capabilities and resources to achieve greater economies of scale so as to provide high quality products, reliable services and excellent value to all clients.”