half true...read the following.........they should be trading at...

half true...read the following.........they should be trading at around $1.50-1.75 fair value

EXCEPTIONAL ITEMS

In the first half of the fiscal year an Exceptional Item charge of
$14.2 million was incurred. This expense included $4.0 million for
restructuring of the Consulting Division and to exit domestic
hardware manufacturing, a write down of $4.9 million of prior period
capitalised research and development costs (following a change in
accounting policy to expense rather than capitalise), and a $5.3
million write down in goodwill and intellectual property.

In the second half the company has incurred a further Exceptional
Item charge of $29.4 million taking the total exceptional Item charge
for Fiscal 2002 to $43.5 million.

The expense reflects the review of asset carrying values undertaken
by Directors at year end, and includes:

* A $2.3 million write down of the goodwill on the scrip acquisition
of ETC Electronic Trading Concepts Pty Ltd in July 2000, and cash and
scrip acquisition of the Rotek Technologies business in 1998.

* A $900,000 provision against loans to employees to acquire company
shares made under a shareholder approved Employee Share Ownership
Plan (ESOP). Under the terms of the ESOP loans are secured against
the shares but most shares are well out of the money;

* A provision of $14.7 million relating to the full write down of the
company's book carrying value of its China activities through
inventory holdings, operational commitments, and unpaid receivables;

* A charge or provision of $8.9 million relating to restructuring of
the SecureNet business following the acquisition of Baltimore's
Australian and NZ operation in June 2002;

A charge of $1.9 million to the carrying value of the company's
investment in SecureNet Asia Ltd (SNA). (With changes to the
management of SNA in January SecureNet no longer equity accounts this
investment.)


FINANCIAL POSITION

The company had cash balances of $86.2 million at June 30, 2002. This
excludes cash holdings in companies in which SecureNet holds an
investment interest. With 75,455,930 shares on issue this represents
$1.14 per share.

During the period the company's cash outflows totalled $30.4 million.
Major expenditure included $9.3 million under a share buy back
program; $3.4 million of Trust Centre start up costs; $0.9 million in
China; $4.8 million in capital expenditure; $2.0 million in income
tax; $9.1 million in business acquisitions; and trading and
Exceptional Item charges.

At June 30, 2002 the company had a healthy, tangible balance sheet
with Net Assets of $99.2 million. This represents $1.32 per share.