RNS Number:5218E
eServGlobal Limited
27 October 2004

                               Chairman's Address

                              eServGlobal Limited

                             Annual General Meeting

                                27 October, 2004



In November 2003 we stood before you with a plan to return eServGlobal to profit
and growth. I am proud and delighted to report that we have achieved the
turnaround of the business, with a second half after-tax profit in the 2004
fiscal year of $1million, on revenue of $17.6million, up 23% from
thecorresponding period in 2003.



This was not achieved without a measure of pain, thus we bore $4million of
restructuring charges, R&D and tax write-offs across the year. These costs,
coupled with the weakened state of the company before the management changes in
September 2003, led to the full year net loss of $5.5million. However, it is the
second half result which indicates the new strength in the business.



The transformation that has occurred within eServGlobal in the last year is
astounding. We now manage the business to a clear plan, with accurate and timely
information and with uncompromising vigilance. Our people are united, motivated
and focused on achieving results. There is a new level of energy and enthusiasm
throughout the company, a level of pride and commitment that flows through to
our customers and ultimately, to our investors.



Market conditions in the telecommunications industry continue to exhibit steady
improvement. eServGlobal is today engaged in a wide range of opportunities,
which gives us confidence in forecasting revenue and profit growth in fiscal
year 2005. We believe our first half will achieve $16million in revenue, 40%
greater than the corresponding period last year. First half EBITDA will be
impacted by the costs of the AIM listing and the setup cost of our outsourcing
arrangements in India, but the second half backlog is building well and we
expect an excellent full year result.



We still face the challenge of an environment where large value contracts can
move our results significantly, in a manner which is challenging to forecast or
to extrapolate to future years. Our significant installed base moderates the
risk but it's not the whole answer. Our objective must be to deliver consistent
and predictable revenue and profit growth over the long term. The solution is to
migrate to a broad-based sales model, where an increasing level of our activity
will come from marketing partnerships with major telco software vendors,
delivering solutions with high recurring revenue components. This is our core
growth stategy.



Our partnership with Comverse Technology was announced in July and we are on
track to conclude an OEM agreement with them by the end of calendar 2004.
Comverse is the world's leader in messaging solutions, with over 400 carriers in
more than 100 countries. This agreement will greatly expand our market reach,
delivering new opportunities and growth. Similar partnerships are being
developed in other sectors of our industry.



Our London Stock Exchange AIM market listing launched on Monday October 18 th
and we believe that this has already delivered substantial value to
shareholders. We are well engaged with leading UK institutions and will continue
to build awareness of the company. And of course our engagement with Australian
investors continues to mature and strengthen.



eServGlobal will continue to be a technology leader. Our ground-breaking
platforms for convergent billing and next-generation messaging are driving our
business forward today, while we invest in and build the innovations of
tomorrow. We are part of a major change in the economics of the
telecommunications industry, bringing more technology within reach of more
people in more countries. Our solutions are in the vanguard of this change. We
are a leader, not a follower. This underpins our confident outlook; this will
enable us to deliver long term growth for our shareholders.



I will now ask our Chief Executive, Mr Pat McGrory, to address you.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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