Investors

Annual Financial Report Announcement

Gresham, the specialist provider of real-time financial solutions and storage solutions, is pleased to report its results for the financial year ended 31 December 2008.

Financial Highlights:

• Revenues increased by 4% to £13.9m (2007: 13.4m)

• Adjusted EBITDA profit of £1.0m (2007: loss £2.2m)

• Administrative costs reduced by over £1m

• Profit on disposal of subsidiary undertaking £0.6m

• Loss before tax £0.2m (2007: loss £2.9m)

• Profit after tax £0.03m (2007: loss £2.4m)

• Cash balance of £1.2m (2007: £2.3m)

• April 2009, further strengthened cash resources through sale and leaseback of freehold office for gross cash proceeds of £875,000.

Operational Highlights:

• Tighter focus on real-time financial solutions and storage businesses

• Restructured IT staff placement business

• Increased sales and marketing capabilities

• Significant market opportunity for real-time cash management solutions

• Landmark contract win in April 2009 with a global banking group which is expected to have a material impact on future performance

• Successful launch of data storage backup virtualisation solution for the IBM iSeries market - a substantial niche market

Andrew Walton-Green, CEO of Gresham, commented, "We entered 2009 with a tighter focus on our core businesses, an encouraging order book, closing out a key contract and strengthening our balance sheet in early April 2009. The current economic environment has helped us achieve solid traction with our cash management solutions. Revenues from our core business are expected to grow substantially.

"I am pleased to report that business in Q1 2009 was slightly ahead of what was a good Q1 2008, with cash balances remaining stable from the year end and expected to grow. We expect 2009 to be a year of significant progress for the group across its core business."

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RNS: 22 April 2009