about state one capital group

State One is an independent Australian-owned financial services group. It has been operating since 1993, having become a full Market Participant of Australian Securities Exchange Ltd ("ASX") in 2000.

As a Market Participant of ASX your assets with State One are afforded the protection of the National Guarantee Fund. Holdings are at all times kept in your name and cannot be transferred or on-lent without your permission.

State One's Executive Chairman, Alan Hill, has been engaged in stockbroking and related activities since 1979. He has extensive experience in equity research; client advice; corporate advice; equity fund-raisings; and stockbroking management. Mr Hill is supported by an experienced team of stockbroking professionals.

State One Capital Group staff exceed 40 in number, with offices in Perth and Sydney.

State One offers:

• client advisory broking services;
• corporate advisory services;
• fundraisings by way of the sponsoring of Initial Public Offerings and the management of equity placements; and
• non-advisory internet and telephone broking through its multiple award-winning Amscot Discount Stockbroking division.

State One focusses heavily on the quality of service it provides to its clients.

Unlike many other smaller Australian stockbroking operations, State One:

• has encouraged its clients to pursue conservative gearing structures;
• has not actively encouraged the short selling of stocks;
• has not actively encouraged the lending of stocks to other parties;
• has at all times dealt only with leading financial institutions. Currently the key intermediaries which State One employs are: NAB, Macquarie Bank and the Bendigo Bank subsidiary, Leveraged Equities.

Both State One Stockbroking Ltd and its associate State One Equities Pty Ltd have capital reserves which are well in excess of the requirements as prescribed by ASX and ASIC.

Furthermore, both the State One Capital Group and its Principal each have conservative financial structures, with absolutely no debt of any form in any group companies at the time of writing.

To complement its conservative capital structure, State One has developed a very low cost operating structure, which is to a large degree independent from the suppliers of services to the stockbroking industry.

June 2008