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Year End Profit Forecast

12:00AM, 2 Jun 2005 | FORECAST

The Directors of Scott Technology Limited advise that although the Company
currently has a very high work load it is anticipated that the year end
profit will be significantly lower than the previous year.

Current profitability is being impacted by the high New Zealand dollar
against our traditional market currencies, being the US dollar and the Euro.
Additional to this, the current global demand for steel and the buoyant
domestic economy have impacted our material, labour and local support costs.
The large number of contracts in progress at the present time has also
required an abnormally high proportion of sub-contract work and overtime to
complete contracts within the clients' time frame.

However, Scott Automation has made considerable progress with the development
of the Meat Industry Robotics Programme with several lines already operating
at a PPCS plant.  The Company is working closely with Meat and Livestock
Australia where the Company expects a substantial market for its Meat
Industry Robotics Programme.  Scott Automation is also in the process of
designing and commencing manufacture of a very significant order for Multiple
Production Systems for an Australian Company which will market these Machines
globally.  The increasing level of business emanating from Australia also
assists the company's currency spread.

Scott Technology Ltd is well advanced in its review of the company's
operating structure and expects the implementation of final recommendations
will result in a more cost efficient business better able to achieve improved
margins from future contracts secured in the global market.  The Company is
currently completing production lines for installation in Australia, USA,
Mexico, China, Turkey and Russia and new sales enquiries continue to be