impairment charges 69.5mil for fy 2008

FOR IMMEDIATE RELEASE

Market Update - Impairment Charges for FY 2008

On 16 June 2008, destra Corporation Ltd provided market guidance that the
company’s estimate of earnings before interest, tax, depreciation and
amortisation (EBITDA) for the year ended 30 June 2008 (“FY 2008”) would be
between $2.5M and $3.5M before impairment charges, which were likely to be
material.
The company now advises that impairment calculations are substantially
complete and will result in impairment charges of approximately $69.5M for FY
2008. These charges have arisen primarily in relation to goodwill in the
Entertainment division (comprising the Music and Vision businesses) and
include write-downs of other specific assets such as intellectual property and
investments.
As detailed in the announcement of 16 June, the Entertainment division has
been adversely impacted by the current retail environment and a disappointing
performance from the theatrical release films business. In addition, the global
structural decline in the CD market and maturing DVD market, both of which
have negatively impacted the company, have not yet been offset by growth in
the corresponding digital businesses.
As a result of the FY 2008 performance and the impact of equity issues, the
timing of the utilisation of tax losses has been deferred to future years.
Accordingly the company will de-recognise prior year tax losses in the accounts
for the year ended 30 June 2008. This will result in a non-recurring charge to
income tax expense of $3.7M.
As announced to the market in April 2008, the board has commissioned a
comprehensive review of the company’s strategy and business activities. As a
result of this review, the board has determined to exit all of the businesses
within the Entertainment division during the current financial year.
Further details of the review and future strategy for the company will be
contained in the market announcement accompanying the FY 2008 audited
results.

Further information:
Mr David Gordon
Executive Chairman
destra Corporation Limited
(02) 9270 0800
Richard Wingrove
Company Secretary
destra Corporation Limited