turned the corner, now in the straight, page-8

update :: solid growth :: back in black •Business Realignment Program completed Q1(on schedule)

•Shift to Operating Profitability within Q2(ahead of schedule)

•Revenue on track with previously stated guidance

•Quality growth –fairly evenly spread across clients and sectors

•Strongly focussed on operational results quarter by quarter

•Seek to enhance performance with value accretive acquisitions and other investments

•Activities to leverage the value and potential of existing Hyro assets in international markets

•Consistent Organic Billings Growth Across Client Base

•Client Numbers Have Grown 11%

•Billings Have Grown 80%

•Increase in demand for services in response to broader market factors(e.g. Qtr to Qtr average growth of 10-12% for top 5 corporate clients)

•Success of Business Development Activities(e.g. addition of 8 new clients and increases in revenue backlog)

•Completion of remediation of “non-commercial projects”

•Shift to revenue generation for “Ramp-up Resources” added in Q3/Q405

•Margin growth partially offset by continued investment in emerging channels and building scale

•Improvement in Revenue / Overhead Resource allocation ratios

•Opportunities to increase scale and performance through targeted, value-accretive investments

•Acquisitions –opportunity to acquire under-capitalised private companies in the Digital Services market

•Investments in complimentary businesses to add scale to the Hyro offering

•Hyro will continue to seek and evaluate these opportunities as they emerge

•Leveraging affiliate relationships overseas to promote sales of Hyro Government Solutions IP
–“Soft,” low overhead Entry to North American Market lead by bid support for international partners
–Demand Pull opportunity to assess the viability of the market and to pursue options for off-shore investment

•Review opportunities for Thai Business
–Thai Business returned to profit Q1
–Strong growth supported by good management team
–Opportunity to further support business by accessing local capital &releasing stored value to Australian Parent
–Investigate local capital raising / float opportunities


THAILAND

•Billings 124% from Q405to Q206

•COGS 39% over the same period

•HyroThailand now profitable

•Hyro Thailand remains around 10% of Group Revenue


Overall Projected Results:

EBITDA projected FY06 $1,925,000
EBIT projected FY06 $877,000