Sealegs More Than Doubles Revenue

Sealegs More Than Doubles Revenue

Auckland, 17 October 2006: Sealegs Corporation Limited (NZX:SLG) today announced it had more than doubled revenues with a record consolidated operating revenue figure for the half year ending 30 September 2006.

The listed marine company reported trading revenue for the six month period of NZ$2,619,100, an increase of 118% on the same period last year of NZ$1,201,180.

Total operating deficit for the half year totaled NZ$499,343, an improvement of 31% over the same period last year deficit of NZ$722,865. The operating deficit of $499,343 is represented by $107,597 in operating deficit and $391,746 from R&D expenses.

Chief Executive Officer, David McKee Wright says "this result shows that the expansion plans we executed early this year have been very successful and that
the company is rapidly moving forward with revenue growth and deficit reduction. Our aggressive policy of writing off R&D costs rather than capitalising them means we are absorbing development costs now even though they are for future year’s models. This should help maximise profit in future years."

Further to this, Mr McKee Wright said “the earnings result, excluding R&D, demonstrates the Company’s ability to break-even next year and then move to profitability.”

Last week Sealegs announced that it had received a total of 18 new amphibious boat orders from its newly appointed distributor in South Korea, Southampton Boat Show customers and Kuwait. These orders represent approximately $1.4 million in forward revenue which is not included in the half year result.

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