USC ANNOUNCES F2000 RESULT

12 September 2000

Highlights

Profit before abnormal items and tax of $4.0 million up 66%
Operating revenue of $76.7 million up 26% (excluding associates)
New sales order intake of $110 million up 37% (excluding associates)
Net assets increased to $35.8 million up 72%
Utility Services Corporation Limited (USC), Australia's leading provider of services to the utility sector, today announced an operating profit before tax of $4.013 million for the F2000 year, a 66% increase over the previous year.

Announcing the results, Chairman, Mr Geoff Lord said that the result was pleasing as it reflected growth in each of the three operating groups - MITS, Infrastructure and Business Services. The MITS profit, he commented, was also achieved in an environment of restricted IT spending in the first half of the year due to customer's concerns about Y2k issues and reflects the stronger second half profit.

Mr Lord noted that F2000 was a year of investment for the group with acquisitions and capital expenditure made in each of the business areas to expand the range of services provided to utilities, to increase critical mass and to position the operations to capitalise on future opportunities.

The balance sheet of the group was also further strengthened during the year with a $21million increase in net assets and the refinancing of its borrowings to long term.

In relation to Logica plc's offer to acquire the majority of the MITS business, Mr Lord advised that due diligence had been completed and Logica have confirmed that they have an interest in purchasing the business. He noted, however, that the terms of the contract of sale are yet to be finalised and that agreement on the structure of the acquisition was key to ensure the after tax benefit to USC is acceptable. Mr Lord reminded that shareholder approval is required for the acquisition to proceed and noted that the Company will continue to keep shareholders informed of developments.