Trading Statement

CONDENSED UNAUDITED GROUP INTERIM FINANCIAL STATEMENTS

for the six month period ended 31 August 2010

GROUP PROFILE

SilverBridge is Africa's leading provider of administration software and IT consultation in the financial services industry. Our expertise covers many financial services' verticals with a specific focus on banking and life assurance. Constant changes in the market require both an agile and innovative approach from financial services providers. SilverBridge has a track record of delivering solutions which enable our clients to be more successful in this challenging market. The future of financial services holds many challenges for providers; the speed at which technology is changing and influencing the behaviour of new generations will require a new approach to financial services. SilverBridge is committed to being part of that new future. The Group operates through the following three subsidiaries:

SDT Financial Software Solutions (Proprietary) Limited (SDT) – Life insurance administration

SDT was established in 1995 and has developed and streamlined its own software which it sells on a rental model. SDT offers life assurance companies quick time to market, reduced contract administration costs and enhanced customer service. SDT's flagship software, Exergy, with its supporting services, is packaged to meet the needs of the different market segments in which it operates.

Ones 'n Zeros Professional Services (SA) (Proprietary) Limited (Ones & Zeros) – Consulting

Founded In 1997, Ones & Zeros is an established IT management consulting business. Its approach is to bring people and technology together. Services include strategic systems implementation and consulting, which align business processes with an organisation's overall IT strategy. It has well established relationships within the banking sector that add to the credibility of the Group.

Acczone Systems (Proprietary) Limited (Acczone) – Loans administration

Acczone was established in 1998 and has a core competency in the delivery of business systems solutions in the loan administration sector, which encompasses interest-bearing credit and debt administration.

FINANCIAL REVIEW

The financial performance of the Group for the six months to 31 August 2010 was disappointing primarily owing to delivery on projects being delayed or misaligned with client expectations. More specifically:

It was a challenging period at SDT delivering on simultaneous complex projects. Some project milestones were not met leading to delayed revenue recognition and/or cost recoveries.

The SDT delivery environment has been critically reviewed and corrective action has been taken. Some skills have been realigned and a higher level of skills has been brought in. The exercise required a retrenchment process, which has been completed.

The Acczone acquisition has increased the overall cost base, however it has not delivered the expected increase in revenue.

Acczone has also been critically reviewed and corrective action has been taken. This included a retrenchment process to reduce the cost base.

Despite the temporary delays in revenue recognition, we have maintained our revenue at the same level as the comparative period. The corrective actions taken have reduced our cost base to be in line with the cost levels of the comparative period. We are confident that the market presents sufficient opportunities and that we have taken the right steps to rectify the challenges outlined above.

OPERATIONAL HIGHLIGHTS

We have made good progress with implementing the Exergy system for new clients in SDT's market. We are applying an improved implementation methodology in the ABSA implementation, a large project that was won last financial year. The current consulting market offers smaller, highly competitive opportunities. Although Ones & Zeros experienced a challenging market, it has successfully migrated from a single contract consulting firm to one that is managing multiple engagements.

GROUP OUTLOOK

Our strategy at SilverBridge remains focused on building our annuity revenue base. Annuity income consists of software rental and contracted support revenue. These are driven and preceded by consulting, implementation and customisation engagements.

The financial crisis has led to challenging current economic conditions as was expected. Within consulting, we have seen a shift from high-value long-term engagements towards smaller, price sensitive opportunities. Clients' decision cycles have lengthened with more assurance work required before final decisions are made, thus increasing pre-sales costs.

However, the environment has also led to new opportunities as financial service institutions search for ways to reduce costs and improve services to their customers. SilverBridge's offerings are well positioned to meet these needs. Despite the challenging and competitive environment, the group sees numerous positive opportunities.

The outlook remains positive. Our annuity revenue creates a base for the Group to grow and we have taken the view that we need to protect our revenue streams. We have therefore supported our clients to resolve problems in their environments. The corrective actions we have taken this period have aligned our group better to current market requirements and should improve delivery capability and financial performance.

Please refer to the Interim Results booklet for detailed financial statements under Investor relations - financial results