ITL RECOMMENCES DIVIDENDS AFTER STRONG RESULT

• Group Profit after tax of $2.5m was nearly double the prior year of $1.3m

• ITL pays interim dividend of 0.5cps and declares final dividend of 0.75cps (first dividend since 2008)

• Profit after tax from Continuing Operations of $2.5m (prior year $2.8m)

• Earnings per share from Continuing Operations increases from 2.19 to 2.54 cents

• EBITDA from Continuing Operations of $3.5m (prior year

$4.0m)

• Positive operating cash flow of $4.6m

• Low gearing (11%) with net debt of $1.3m

ASX Announcement 14 August 2013 ITL Limited ABN 16 088 212 088 Unit 1, 63 Wells Road Chelsea Heights, Victoria, 3196

ITL is a diversified healthcare company, specialising in innovative medical devices and procedure packs for global healthcare markets. ITL manufactures in Australia and Malaysia, and has sales offices in Australia, North America, and Asia.

ITL's patented medical devices have a presence in over 35 countries and protect healthcare workers in millions of procedures annually. ITL supplies its range of customised medical procedure packs to over 200 hospitals across Australia.

ITL Limited is pleased to announce its consolidated full year financial results for the period ended 30 June 2013.
The Group reported profit after tax of $2.5m which was an 86% improvement on the $1.3m profit reported for last year. The latter included a loss of $1.4m from the Healthcare SEA business which was sold effective 1 January 2012.
Profit after tax from Continuing Operations of $2.5m was down on the prior year profit of $2.8m. Revenue for the Innovative Products Group decreased slightly due to industry consolidation and reduced demand from the U.S. blood banking market, Healthcare Australia revenue also declined due to the completion of major hospital contracts but profit improved significantly. Results were also adversely impacted by the absorption of Head Office costs previously charged to Healthcare SEA.
These pressures on revenue streams were largely offset by improved gross margins and savings in operating expenses.
The result also reflected the write back of previously unrecognised prior year tax losses in Australia. Given this situation, it is not anticipated that any tax will be payable in Australia for the next financial year.
The Group reported positive operating cash flow of $4.6m (prior year
$4.7m), which together with increased borrowings was used to fund the ongoing share buyback. This was an effective means of returning surplus capital to shareholders and enabled the Group to maintain an efficient capital structure.

Australian Securities Exchange

Code: ITD

Ordinary Shares

87,907,177

Board of Directors

Bill Mobbs Executive Chairman Sanjay Sehgal Non-executive Director Julian Gosse Non-executive Director

Trevor Doolan Company Secretary

David Holden Chief Financial Officer

ITL Contact

Bill Mobbs Executive Chairman

Phone: +61 3 8773 3050

Email: info@itl-limited.com
www.itl-limited.com

ASX Announcement 14 August 2013

The Group's gearing at 30 June 2013, measured as net debt as a percentage of net debt plus equity, was
11% (30/6/12: nil).
During the year, ITL paid its first dividend since 2008. An interim dividend of 0.5 cents per share was paid in
April and a final dividend of 0.75 cents per share declared today. The record date for the final dividend is 23
August 2013 and the payment date is 2 September 2013.This brings the total fully franked dividend in respect of the 2012/13 financial year to 1.25 cents per share which approximates a 46% payout of Group profit after tax.

Outlook

Subsequent to balance date, the Group has announced the acquisition for $1.5m of long term leasehold land and an existing modern medical device factory with clean rooms in Perak, Malaysia. ITL's existing manufacturing facilities in Ipoh Malaysia are significantly space constrained and relocation to this new facility will provide a long term solution for ITL's expansion plans for its Innovative Products Group. Approval has been received from Maybank to provide term loan funding for approx. $1.0m with the $0.5m balance of the purchase consideration to be paid in ITL shares.
The recent strength of the US dollar against the Australian dollar will, if sustained, significantly enhance revenue growth in Australian dollar terms for the Innovative Products Group. In addition, new business opportunities, expanded distribution arrangements in the U.S., entry in to new markets and new product development will generate future growth.
Healthcare Australia's new growth opportunities have been slower than expected to come on stream. As a recently approved supplier of custom sterile packs to NSW public hospitals, ITL now has the opportunity to participate in specific NSW public hospital contract tenders as they progressively arise. In addition, Healthcare Australia has been awarded status as sole supplier of intravenous cannula insertion packs for W.A. public hospitals. Successful trials have been undertaken and it is hoped that firm sales orders will emerge in the next few months. To support working capital growth for both these new opportunities, approval has been received from Commonwealth Bank to increase funding facilities.
The 2013/14 financial year will be an investment year for ITL with expenditure on the newly acquired Malaysian facility and working capital growth. This will position the Group for enhanced profit growth going forward which in turn will lead to improved returns to shareholders.

Bill Mobbs
Executive Chairman

ITL (ASX: ITD, www.itl-limited.com) is a diversified healthcare company, specialising in innovative medical devices, procedure packs and medical equipment for global healthcare markets. ITL manufactures in Australia and Malaysia, and has sales offices in Australia, North America and Asia.

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