News Release-- November 06, 2007

Automated Announces FY08 Interim Results - Profit Up 40.6% to Approximately HK$25.7 Million

(Hong Kong, 6 November 2007) – Automated Systems Holdings Limited ("Automated" or "the Group") (stock code: 771), Hong Kong's leading IT services provider, announced its interim results for the six months ended 30 September 2007. Turnover for the first six months of FY08 was HK$667 million, an increase of 19.1% compared with the corresponding period in FY07, while net profit was approximately HK$25.7 million, an increase of 40.6% against approximately HK$18.3 million in the corresponding period last year. Basic earnings per share were HK8.73 cents (FY07 interim: HK6.22 cents).

Mr. Lai Yam Ting, Managing Director of Automated, said, "The Group is pleased to have achieved satisfactory profit growth. During the period under review, contributions from managed services and outsourcing business rose and professional services on software application also performed favourably. In the first six months of FY08, we secured various multi-million dollars projects for new infrastructure system or infrastructure upgrade / enhancements, mainly from the finance sector. All these factors contributed to our boosted profitability."

Product sales and service revenue for the first six months accounted for 62.4% and 37.6% of the Group's total turnover respectively, 13.6% and 29.4% higher than in the same period last year. Private and public sector sales for the first half of FY08 made up 58.7% and 41.3% of the total turnover respectively, which was at approximately the same level as last year.

As at 30 September 2007, the Group had a healthy balance sheet with no debt and HK$257 million in net cash. It had zero gearing and the working capital ratio was 2.01:1. The Board of Directors declared an interim dividend payment of HK4.0 cents per share for the six months ended 30 September 2007 (FY07 interim: HK3.0 cents per share).

The IT system infrastructure business delivered solid performance during the first half of FY08, particularly in the commercial sector. The Group secured significant multi-million dollars infrastructure deals to provide servers on different IT platforms for multinational enterprises to boost operational performance and meet service requirements. These deals included the provision of IBM System p5 servers to a renowned telecommunication services provider for upgrading its mobile phone services and IBM System p6 servers to Cathay Pacific for replacing its existing flight scheduling system. The Group also provided 3 units of Sun E25K high-end servers to an international bank for upgrading its banking system.

The Group's solution and service business continued to grow in the first six months of FY08. The Group completed all SWIFTNet Phase 2 migration orders received from financial institutions in Hong Kong and Macau and has taken new orders of SWIFTAlliance Gateway system upgrade from more than 15 financial institutions to facilitate running of the new generation Real Time Gross Settlement System (RTGS). Furthermore, the Group was appointed as one of the two service providers in Hong Kong by a leading computer vendor to deliver warranty services, hardware product services specific to the vendor's platform. By the end of the year, the Group will also provide installation service to the end users on behalf of the vendor.

In addition, a US-based marketing services corporation has chosen the Group as a preferred service supplier to provide IT services to all its offices and related agencies in Asia Pacific countries including Hong Kong, China, Japan, Singapore and Australia. The scope of service will include providing daily operational support, project management and implementation, IT governance review(s) and corporate standards enforcement. Currently, the Group is providing this client with equipment procurement service, IT support services and IT governance review for three projects in Hong Kong.

In Macau, the Group secured contracts to provide Playing Card Tracking System and Baccarat Score Board System for two new major casinos. The Group is now serving five of the six gaming concession holders in the city. ASL Guangzhou, on the other hand, won a deal to provide IT infrastructure, networking and help desk support services for the Chengdu and Xiamen offices of a HK-listed company. Furthermore, the Group has been selected by a hotel in Taipei to customize and implement a front office and back office system. It is the first deal of the kind secured by the Group in the Taiwan market.

Mr. Lai added, "We are very positive about the Group's performance in the second half year. In Hong Kong, the Group will continue to explore new outsourcing opportunities, refine service offerings and quality. To serve better our clients with PRC operation, we will provide a comprehensive service package with particular focus about their operation in China. Apart from forming alliance and reseller relationship with major vendors, such as Sun, Oracle and EMC, in Greater China, the Group will continue in its effort to cover more vendors with wider variety of services and products. Currently, the Group is also pursuing expansion opportunities in Beijing, Shanghai and other areas through strategic alliance and mergers & acquisitions.

"The Group is celebrating the 10th anniversary of its listing on the Stock Exchange of Hong Kong this year and 10 years of profitable operation. In the years to come, to grow our business and enhance shareholders' value, the Group will push forward with regional expansion, particularly in Greater China, drawing on the expertise and experience of our centre of excellence in Hong Kong."

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