Supply Network : Earnings forecast half year December 2016, full year guidance and interim dividend

ABN 12 003 135 680

1 Turnbull Close Pemulwuy NSW 2145 PO Box 3405 Wetherill Park NSW 2164 Telephone: 61 2 8624 8077

25 January 2017

The Manager

ASX Market Announcements Office ASX Limited

20 Bridge Street

Dear Sir

The Directors are pleased to advise that based on unaudited management accounts for the half-year to 31 December 2016 consolidated sales revenue was $47.7m.

Earnings before interest and tax (EBIT) for the half-year is expected to be around $4.4m. Profit after income tax is expected to be around $3.0m.

Final half-year results will be released to the market in late February 2017.

Our market remains highly competitive and we expect this to continue. In such an environment we need to continually invest in building our market position and in developing existing market opportunities. This will increase our operating costs but will also underpin future growth in both revenue and profitability.

Directors advise that revenue for the full year is expected to be in the region of $95m and EBIT for the full year is expected to be in the region of $8.5m.

Directors have declared a fully franked interim dividend of 4.5 cents per share, which is an increase of 0.5 cents on the previous year's interim dividend. The record date for the interim dividend is 17 March 2017 and the dividend will be paid on 31 March 2017.

Please also refer to Appendix 3A.1 Notification of Dividend released separately.

The Directors advise that the Supply Network Limited Dividend Reinvestment Plan will not operate in respect of the interim dividend.

Yours faithfully

Peter Gill

Company Secretary