SAI Global reports first half revenues in excess of $100M

Sydney, Australia, 15 February 2007. SAI Global Limited (ASX: SAI) today announced a 47.4% increase in revenues for the six-month period ended on 31 December 2006. Total revenues were $101.6 million, up from $68.9 million in the corresponding period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 50.6% to $19.3 million, up from $12.8 million in the corresponding period. EBITDA margins expanded to 19.2%, up from 18.7% a year ago. Net profit after tax increased 37.9% from $5.9 million to $8.1 million.

The directors have declared an interim dividend of 5.2 cents per share, 85% franked. Underlying cash earnings were $12.3 million, up 35.5% from the $9.1 million achieved in the corresponding period last year.

HIGHLIGHTS

Revenue	$101.6 million	Up 47.4%
EBITDA	$19.3 million	Up 50.6%
Net Profit After Tax	$8.1 million	Up 37.9%
Underlying cash earnings¹	$12.3 million	Up 35.5%
EPS	5.7 cents per share	Up from 5.5 cents
Underlying cash EPS	8.6 cents per share	Up from 8.5 cents
Dividend	5.2 cents per share (85% franked)	Up from 5.0 cents (100% franked)
Net Operating Cash Inflow	$12.3 million	Up from $7.7 million

The Chairman of SAI Global Limited, Mr George Edwards, said: “The first half result demonstrates our ability to deliver against the company’s financial goals, as well as make substantial progress on integrating acquired businesses. Acquisitions continue to improve our global coverage and the critical mass in each business unit.”

On the half year result the Chief Executive of SAI Global Limited, Mr Ross Wraight, said: “This strong result reflects SAI’s ability to continue to deliver value adding acquisitions while maintaining an operational focus on effective management and driving organic growth.

“SAI has built a robust international management structure and is well positioned to continue to capitalise on market conditions. The result was achieved whilst increasing expenditure on infrastructure that allows effective integration of acquired business and provides a platform for future growth.”

Business Publishing Division

	6 months ended 31 December 2006	6 months ended 31 December 2005	Change (%)
Revenue ($M)	36.7	22.3	64.2
EBITDA ($M)	11.7	6.7	75.3
EBITDA Margin (%)	31.9	29.9	6.7

Business Publishing continued to grow revenue and profit during the half. The additions of Anstat in August 2005 and ILI in April 2006 combined with solid organic growth in Standards Publishing, Legal Publishing and Property Information resulted in a 64.2% increase in revenue and 75.3% increase in EBITDA, over the corresponding period in 2005. Organically, the division grew by 7.8% driven by strong market share growth in the Property Information business and an above historical trend in Standards Publishing growth from a solid supply of new and revised standards.

Operational focus has been on bedding down and integrating acquisitions while maintaining operational effectiveness. Integration activities included:

• the minor relocation of businesses between divisions with all the Lawlex alerts and newsfeed business moving into Compliance
• a change in reporting structures to bring all Australian publishing assets under common management,
• the sale in Australia of products made available through ILI; and
• the integration of web delivery systems in Standards Publishing and ILI.

These initiatives will be largely completed by year-end as will be the appointment of a new Global Head of Publishing.

Compliance Services Division

	6 months ended 31 December 2006	6 months ended 31 December 2005	Change (%)
Revenue ($M)	10.1	7.3	38.6
EBITDA ($M)	1.6	1.5	10.6
EBITDA Margin (%)	16.3	20.4	(20.0)

The highlight of the Compliance Division result for the half was the 26.8% increase in organic growth with both Easy i and Lawlex growing sales strongly. Overall growth, which included a full six months of Lawlex, was 38.6%.

The addition of sales resources to drive growth and an increase in deferred revenue in Easy i have meant that the sales growth has not been fully translated into profit growth. EBITDA growth over the same period last year was 10.6%.

The operational focus for the division for the first half of the financial year was the creation of a single global organisation structure, business integration and new product development.

The financial results for the compliance division include the results for Easy I and the whole of the Lawlex business. The second half result will include five months of Midi.

Assurance Services Division

	6 months ended 31 December 2006	6 months ended 31 December 2005	Change (%)
Revenue ($M)	43.2	28.4	52.0
EBITDA ($M)	6.1	4.6	30.3
EBITDA Margin (%)	14.0	16.4	(14.6)

Continued organic growth and the inclusion of a full six months for EFSIS and three and a half months for Certo, resulted in strong revenue and profit growth for the Assurance Division in the December half. Revenue grew by 52% and EBITDA by 30.3%. The lower EBITDA growth relative to revenue is a consequence of the changed mix of business with the acquired EFSIS trading at lower margins than the traditional businesses, albeit ahead of acquisition expectations.
Operational focus during the six months, as before, was on improving customer service and operational efficiencies, driving new product development and geographic development. A new global head for the Assurance business commenced in February 2007. This is an important step for the continued growth of the division.

The establishment of joint ventures in Japan and China and the acquisition of Certo in Italy have closed significant gaps in our global coverage but more needs to be done.

Professional Services Division

	6 months ended 31 December 2006	6 months ended 31 December 2005	Change (%)
Revenue ($M)	10.8	10.4	3.1
EBITDA ($M)	0.8	0.7	21.0
EBITDA Margin (%)	7.9	6.7	17.9

Professional Services improved EBITDA by 21.0% over the previous period despite a relatively small 3.1% revenue growth. The increase in profitability was primarily the result of a lower cost base following a restructure of the Australian operations.

The primary strategy of this Division is to support initiatives within the other divisions while improving operational performance.

The division’s diversification away from purely standards related training products to business improvement and electronic products continues. Electronic training products have the potential of creating annuity revenue streams. During the period a web shop was launched for the telecommunications industry.

Acquisitions

On January 19, 2007, SAI Global completed the acquisition of Midi, one of North America’s leading providers of compliance, ethics learning, and communications solutions. Mr. Wraight said: “Midi is SAI Global’s fifth acquisition in North America and firmly establishes our business model in this market. Strategically, Midi provides the necessary scale and growth potential to SAI’s compliance business making it a leading player in what is still a highly fragmented market. The demand for compliance, risk and regulation solutions continues to grow very strongly.”

Outlook for the Full Year 2007

Going forward, ongoing solid demand for SAI’s products and services around the world is expected, with revenue and profit growth to continue. Revenue growth in excess of 30% is expected, which should translate into an increase in EBITDA in excess of 40%.

Dividend Payment

The interim dividend will be paid on the 29 of March 2007 to shareholders registered as at the 26 of February 2007.

The directors expect continued dividend growth from current levels, having regard to future business conditions and opportunities, and the cash flow requirements of the company.

Expansion overseas has reduced the company’s ability to frank dividends. The directors expect the next two dividends to be 85% franked.

Media & Investor Inquiries

Tom Godfrey – SAI Global
+61 2 8206 6863 • 0414 191 034 • tom.godfrey@sai-global.com

SAI Global (ASX: SAI) is an applied information services company that helps organizations manage risk, achieve compliance and drive business improvement through: Delivering standards, regulatory and technical information; Adding value to this information; Creating training, communication and monitoring solutions; and providing assurance through independent assessment. For further information please visit www.saiglobal.com.