ACN 120 394 194

Fifth Floor 233 New South Head Road

Edgecliff NSW 2027 Phone (02) 9362 3734

Thursday, 28 August 2008 www.ilh.com.au

The Manager Company Announcements Office Australian Stock Exchange Limited

2008 Full Year Result and Dividend Announcement

Integrated Legal Holdings Limited (“the company”) has today released its results for the financial year ended 30 June 2008. This is the first year end financial result of the company since an initial public offering and subsequent public listing on 17 August 2007. The financial result therefore represents an approximate 10.5 month trading period. 1. 2007/08 Highlights

The Directors report that the company has made excellent progress in the period since listing, achieving strong profitability in line with expectation and with improved business performance by member firms. The key financial highlights for the financial year ended 30 June 2008 are summarised below.

• Operating revenue for the 10.5 month period was $10.69m.

• Net profit after tax for the 10.5 month period was $1.54m, representing 14.4% of operating revenue.

• Both divisions of the company performed well during the period, the first under the ownership of

Integrated Legal Holdings Ltd.

o The legal services division achieved fee income of $9.38m for the period to 30 June 2008;

o The information technology division achieved fee income of $0.79m for the period to 30 June 2008.

• The company achieved strong earnings per share (weighted average) for the period to 30 June 2008 of

2.66 cents per share.

• In accordance with the company’s announcement in October 2007, and as a result of the company’s strong earnings result and cash position, the Directors have declared a dividend of 2.2 cents per share fully franked. This represents a pro-rata of the announced 2.5 cent dividend policy, on the basis of the shortened initial trading period.

The Directors have revised the dividend policy of the company and in future periods dividends will be declared after consideration of the performance of the company and future investment opportunities. Additionally, the Directors advise their intention to declare an interim dividend following release of the company’s half year financial results.

• The company has achieved a strong Balance Sheet position, with cash holdings at 30 June 2008 of $5.63m ($5.04m 31 December 2007), and a net tangible asset backing of 11.71 cents per share, (compared with 10.02 cents per share at 31 December 2007).

For

per

sona

l use

onl

y

Page | 2

• Operating cash flows strengthened during the 2nd half, with $1.21m received for the period since

inception.

• The company has grown strongly and selectively expanded during the period, with the announcement of 2 tuck in acquisitions. Annualised revenue of these acquisitions was approximately $1.05m.

The Directors are of the view that the company is well placed to continue growth both organically and by acquisition by capitalising on the significant opportunity afforded by prevailing industry issues, including succession planning and availability of capital to fund growth. Long-term competitive advantage can be achieved by the company in supporting member firms in developing scale to underpin future growth and profitability.

The Directors note that they have appointed a new Managing Director for the company effective May 2008. Mr. Graeme Fowler is based in Sydney and was previously Chief Executive Officer of listed accounting and financial services consolidator WHK Group Limited. Since commencing with the company, Mr Fowler has in conjunction with the Board undertaken a review of the operations of the company with a view to refining the company’s strategy and business model in order to appropriately position the company for achieving strong and consistent future growth in earnings and dividends. The Directors are pleased with the Group’s performance and the significant progress that has been made during its initial year as a publicly listed company. Consistent with this position, the Directors believe the outlook for the Group for 2008/09 is strong and expect growth in operating revenue, net profit after tax and earnings per share. 2. Full Year Profit Summary Net profit after tax for the period ended 30 June 2008 was $1.54m. The result was achieved on total operating revenue of $10.69m. Earnings per share were 2.66 cents for the period.

2007/08 (10.5 months)

$m Revenue Fee Income Other Income Operating Revenue

10.17 0.51

10.69

EBITDAI* 2.84 As a % of operating revenue Impairment Losses

26.6%

0.21 Amortisation Expenses 0.03 Depreciation 0.09 Lease, HP and Interest 0.03 Tax 0.94 Net Profit After Tax As a % of operating revenue

1.54 14.4%

Earnings per Share (weighted average) 2.66 *EBITDAI = Earnings before Interest, Tax, Depreciation, Amortisation and Impairment.

For

per

sona

l use

onl

y

Page | 3

3. Final and Full Year Dividend

The Directors are pleased to announce a dividend of 2.2 cents per share fully franked (at a 30% tax rate) for the period to 30 June 2008. The dividend is in accordance with the company’s announcement in October 2007, and is as a result of the company’s strong earnings result and cash position. The 2.2 cent dividend represents a pro rata of the announced 2.5 cent dividend policy, on the basis of the shortened initial trading period (10.5 months). The dividend of 2.2 cents is payable on 7th November 2008, with the record date for determining entitlements to the dividend being 17th October 2008. The Directors have revised the dividend policy of the company and in future periods dividends will be declared after consideration of the performance of the company and future investment opportunities. Additionally, the Directors advise their intention to declare an interim dividend following release of the company’s half year financial results. 4. Full Year Profit Analysis and Performance Review

The company’s two divisions performed well during the period.

2007/08

(10.5 months) $m

Fee Income - Legal Services

As a % of operating revenue - IT Services

As a % of operating revenue

9.38 92.2% 0.79 7.8%

Total Fee Income 10.17 Total Net Contribution from firms*

As a % of operating revenue 3.61

35.5% *Net Contribution = Net profit from member firms before tax, interest, depreciation, amortisation and impairment

The total net contribution from member firms was $3.61m for the period, with a margin of 35.5% of fee income. The Directors are particularly pleased with the performance of member firms given that this was the initial period of the member firms as part of the company. Legal Services Division The Legal Services Division incorporates the businesses of Talbot Olivier and Brett Davies Lawyers. Talbot Olivier operates in commercial law, litigation, and insurance, predominantly in the Perth area, and targets commercial clients in the mid market segment. Brett Davies Lawyers is a specialist superannuation, taxation and estate planning firm, with predominantly accountant and financial planning clients across Australia. The company’s strategy is to develop a national network of leading law firms in the capital cities and other key centres across Australia, with a view to the growth and improvement of these businesses, as well as the development of cross referral processes and scale advantage opportunities. The company will look to the acquisition of a series of medium sized commercial law firms, as well as a number of specialist law firms in areas such as superannuation, tax and estate planning, and employment law, which will look to leverage member firm relationships in these growth segments. The Directors are of the view that the legal services industry is currently influenced by a number of issues which provide an opportunity to develop and grow a network of leading medium sized firms in the mid

For

per

sona

l use

onl

y

Page | 4

market, SME and high net worth client segments, and that the company’s business model and strategy provides the basis for assisting member firms in addressing these industry issues. Issues affecting the legal industry include the following:

- It is difficult for medium sized firms to attract and retain good senior lawyers - It is hard for medium sized firms to provide broad services to clients - It is problematic for medium sized firms to achieve growth, due to limitations on available capital for

working capital and general business investment - Some owners are seeking a value for their business

Information Technology Services Division The IT Services Division incorporates the Law Central business, which is an internet based customised legal document publishing and information service. The service is targeted towards accountants and financial planners and earns revenue based on the selling of documents and subscriptions to the service. The company strategy for IT Services is to grow and develop the business through the expansion of on-line services, and the building of deeper relationships with the existing Law Central client base. The IT services business provides an element (15%) of recurring revenue through subscriptions to the service. 5. New Business Acquisitions

The company has grown strongly and selectively expanded by acquisition during the period, with the announcement of 2 tuck in acquisitions. Annualised revenue of these acquisitions was approximately $1.05m. The Directors are of the view that the company is well placed to continue growth both organically and by acquisition by capitalising on the significant opportunity afforded by prevailing industry issues, including succession planning and availability of capital to fund growth. Long-term competitive advantage can be achieved by the company in supporting member firms in developing scale to underpin future growth and profitability. Broadly, the company’s acquisition strategy is based on the following principles: • Owning a limited number of member firms in capital cities and key regional areas across Australia. • Target firms are both medium sized commercial law firms and specialist law firms in key growth

segments. • Acquiring selectively and incrementally only quality firms compatible with existing firms and company

aspirations and values. • Supporting the strong growth and development of member firms both organically and by acquisition, to

achieve scale businesses with competitive advantage in their markets. • Developing internal cross referral processes and external strategic relationships to leverage client

opportunities as part of a network of member firms. • Developing cost advantages for member firms through national procurement arrangements. During the period, two new tuck-in acquisitions have been added to the company and have been merged into Talbot Olivier as follows: • The law firm of Shane Leslie, a commercial litigation firm based in Perth. The firm had annualised

revenue of $750k at the time of acquisition (28/09/2007).

• The law firm of Peter Marks, an estate planning law firm based in the greater Perth area. The firm had annualised revenue of $300k at the time of acquisition (19/09/2007).

More generally, the opportunity for continued growth by acquisition is considered to be significant having regard to the prevailing industry issues, and the appropriateness of the company’s strategy and business model in supporting growth and development of member firms.

For

per

sona

l use

onl

y

Page | 5

6. Balance Sheet and Operating Cash Flow The company has maintained a strong Balance Sheet position with cash holdings at 30 June 2008 of $5.63m ($5.04m 31 December 2007), no debt, and a net tangible asset backing of 11.71 cents per share, compared with 10.02 cents per share at 31 December 2007.

As such the Directors believe the company is well placed for future growth.

Operating cash flows strengthened during the 2nd half, with $1.21m received for the year.

7. Management Structure and Operating Priorities

A new Managing Director was appointed for the company effective May 2008. Mr. Graeme Fowler is based in Sydney and was previously Chief Executive Officer of listed accounting and financial services consolidator WHK Group Limited. Since commencing with the company, Mr Fowler has in conjunction with the Board undertaken a review of the operations of the company with a view to refining the company’s strategy and business model in order to appropriately position the company for achieving strong and consistent future growth in earnings and dividends. In respect of all three foundation businesses, Talbot Olivier, Brett Davies Lawyers and Law Central, the 2008/2009 financial year will require an element of business investment to ensure the firms are best placed to take advantage of growth opportunities available to them. Further, the company’s corporate expenses will necessarily grow into 2008/2009. The company has made important investment in senior management of the company, whom the Directors believe will be able to manage the company to achieve strong growth into the future. The company now has a full time Managing Director based in Sydney (effective May 2008) as well as a Chief Financial Officer/Company Secretary based in Perth (effective September 2007). Whilst we anticipate a very small corporate office for the company going forward, the full year effect of these appointments will increase year on year costs. Further, the company is looking to continue to develop processes and procedures to ensure value is extracted from the businesses for shareholders. 8. Outlook Overall, the Directors are pleased with the progress and performance of the company since public listing in August 2007, and consider the company to have very strong future prospects. The company has achieved an important base, but requires some refinement in the strategy and business model and some investment in people and processes in 2008/2009 in order to underpin appropriate growth and sustainability of earnings into the future for shareholders. The Directors believe the company will perform strongly in 2008/09 and expect growth in operating revenue, net profit after tax and earnings per share. The Directors are confident in the longer term outlook of the company given the strength and underlying quality of the existing member firms, the significant potential to grow organically, and by the opportunities for selective acquisition growth as part of the strategy of developing a national network of legal services businesses. Graeme Fowler Managing Director Thursday, 28th August 2008

For

per

sona

l use

onl

y