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SCOTT RESULTS STARTING TO TRACK FAVOURABLY

12:00AM, 7 Oct 2008 | FLLYR

7 October 2008

Listed Company Relations
New Zealand Exchange Limited
PO Box 2959
WELLINGTON

Dear Sir/Madam

SCOTT RESULTS STARTING TO TRACK FAVOURABLY
FINANCIAL RESULT FOR THE YEAR ENDED 31 AUGUST 2008

Result

The Directors of Scott Technology Limited report that the Company made a loss
after tax of $818,000 on operating revenues of $25.0 million for the year
ended 31 August 2008.  The second half of the year produced a Group profit
after tax of $18,000, compared to a loss after tax of $836,000 in the first
half of the year.  This year's result compares to the previous year's after
tax surplus of $3.09 million, achieved on operating revenues of $29.2
million.

Total shareholders' equity at 31 August 2008 was $18.8 million, compared to
$17.1 million at 31 August 2007.  The balance sheet remains strong with total
assets of $30.2 million, an increase of $8 million from 2007, funded by $5
million of debt, an increase in working capital and equity issued as a
component of the Rocklabs acquisition.  Operating cash flows were positive
$1.2 million and the Company had cash on hand of $1.2 million at year end.

Dividend

After paying a six cent final dividend during the year for the year ended 31
August 2007, the Directors have declared that no dividend will be paid in
respect of the year ended 31 August 2008.

Working capital, including cash, will be required to fund the Company's
expected growth and return to more normal trading levels in the short to
medium term.

Board Composition

Mr Graeme Marsh, the Company's long serving Chairman and substantial
shareholder, retired at the Company's last annual meeting in December 2007.
This was well signalled in advance, as was the retirement of Mr Kevin
Kilpatrick who served as CEO until May 2006 and who retired from the Board in
August 2008.  The Company now has a small but experienced Board who are
focussed firmly on the future.

Operations

The year to 31 August 2008 was one of volatility in the Company's
international markets.  The United States housing crisis, which sparked the
global credit crunch, directly affected the Company's key market - the home
appliance manufacturers.  Another primary market for the Company, meat
processing, also suffered under the strain of drought and changing
fundamentals.  Despite all this, the Company has been successful in securing
new work and the current forward work load is now at more normal levels.

The Company's diversification strategy implemented several years ago
continued during 2008 with the successful acquisition of Rocklabs, a
manufacturer and supplier of laboratory sample preparation equipment to the
mining sector worldwide.  The existing Scott business and Rocklabs have
already been jointly working on projects which have enabled Rocklabs to offer
enhanced automation solutions to its customers.

The Company continues to look for other suitable and complementary
acquisition targets that will further grow the business.

Significant achievements in the second half of the year included:

A small profit after a significant loss for the first half of the year and
after absorbing the cost of a number of one-offs such as redundancies which
were forced on the Company by the global market conditions

Surviving the highest New Zealand dollar/United States dollar exchange rate
in over 25 years

Acquisition of the Rocklabs business, with the addition of a very manageable
$5 million debt on the balance sheet

The first commercial orders for automated boning room systems for the meat
industry through associate company, Robotic Technologies Limited

Continuing expenditure on research and development in several aspects of the
business - a key investment in the future

Near completion of the new Kaikorai Valley Road, Dunedin manufacturing
facility, with design and administration staff having moved in shortly after
balance date and the workshop operations to follow in late October

Maintaining a strong balance sheet and good cash flows

A good forward work position

Prospects in all markets improving

Establishment of a Eurpoean sales agency, Scott Euro Limited

A strong management team, with a clear vision and way forward

These achievements assist the Company to position itself for a much improved
performance in the near future.  The Directors are confident that the Company
can achieve this, provided the global economic situation does not deteriorate
further.

Yours faithfully

Stuart J McLauchlan                                     Chris C Hopkins
Chairman                                                Managing Director