DMX_Technologiies 3Q2009_Profit Rises 18.01% to US$2.8M 091109

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DMX TECHNOLOGIES GROUP

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3Q09 Media Release

DMX 3Q09 net profit rises 18.01% to US$2.8 million;expects full FY09 profits to be much better than FY08

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3Q09 net profit rises 42.6% over 2Q09

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3Q09 gross margin at 25.62% vs 22.33% in 2Q09 on higher revenuecontribution from Digital Media group

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Continues to generate positive net cash from operating activities ofUS$4.7 million on improved collections from trade receivables andbetter management of payables

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9 months PAT of US$5.6 million vs full year 2008 PAT of US$3.6million

Singapore, 9 November 2009 – SGX Mainboard-listed DMX Technologies GroupLimited (“DMX” or the “Group”; SGX: 5CH.SI)

announced today that net profit for thethird quarter ended 30 September 2009 (“3Q09”) rose 18.01% to US$2.8 million fromUS$2.3 million a year earlier and said it expects FY09 full year profit would be much betterthan FY08. Concurrently, 3Q09 net profit grew by 42.6% over 2Q09 of US$1.9 million.Underscoring the success of the long-term core business strategy and shift to higher-margin revenue mix, gross margin strengthened to 25.7% from 22.3% in 2Q09; despite aslight dip in revenue to US$46.3 million from US$48.8 million.Digital Media group continued to power the Group’s performance, contributing to 34.3% ofrevenue for the 9 months; as the Group strengthens itself in the digital TV market with itsintegrated solutions and multi-media software.The Group’s traditional Infrastructure Enabling business declined about 2.9% to US$30.3million in 3Q09; despite a 47% growth in the Managed Services segment. The dip wascaused by lower contribution from Malaysia and Indonesia due to the festive season. Forthe 9 months of FY09, Infrastructure Enabling group contributed 65.7% of total revenueversus 69.8% of FY08.Geographically, China continued to be the largest revenue contributor for 9 months at75.4% or US$100.9 million (9 months FY08: 72.3% or US$89.2 million).Commenting on DMX’s performance, CEO, Ms. Jismyl Teo, “I am pleased that our effortsover the last two years are delivering sustainable contributions from our re-alignedbusiness segmentation. This performance underpins the continuing relevance of our

DMX TECHNOLOGIES GROUP

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strategic long-term business direction. We are now keen to leverage on the numerousopportunities that are emerging to take us to the next level of growth.”DMX continued to generate positive net cash from operating activities of US$4.7 million atend 3Q09; on improved collections from trade receivables and better management ofpayables.As at 30 September 2009, DMX’s earnings per share on a fully diluted basis was 0.47 UScent and net asset value per share was 35.78 US cents (based on share capital of531,410,184 shares).On outlook for the rest of FY2009, Ms Teo added, “We are encouraged by the improvingmarket sentiment and believe that our core business activities will remain on track for therest of FY09.”The Group has also expressed measured confidence that it need not incur any unexpectedimpairment or allowances for the year. With the profits after tax for the first nine months ofFY09 at US$5.6m, about US$2.0m higher than the full year 2008, and barring unforeseencircumstances, the Group expects FY09 profits after tax to be much better than FY08.“We believe that our established business network, customer reference base and trackrecord have strengthened our ongoing long-term business fundamentals. It is with the veryintention of enhancing these business fundamentals that DMX entered into a strategicinvestment agreement with KDDI. This tie-up is to accelerate DMX to become a leadingtelecom and media solutions provider in Asia Pacific,” she added.KDDI is the second largest telecom operator in Japan and one of the leading carriers inAsia Pacific providing fixed, mobile and broadcasting services.KDDI will support the Group to continue to develop and grow its existing business throughreferring appropriate business opportunities, jointly developing new products and servicesand by transferring specialized technology, where appropriate, to enhance the Group’scompetitiveness and products offering.The capital raised will enhance the balance sheet of the Group by enabling it to participatein bigger projects, expand its geographical coverage and invest into new applicationbusiness to take advantage of the new business opportunities within the telecom industryin China.The proposed transaction is subject to shareholders’ approval at a Special GeneralMeeting on 20 November 2009.

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This press release is to be read in conjunction with the Company’s exchange filing of 3Q09 results announcement, which can be downloaded from www.sgx.com via listed company announcements.

Media & Investor Relations Contact Info:

WeR1 Consultants Pte Ltd DMX Technologies Group

29 Scotts Road 10 Hoe Chiang Road Singapore 228224 #16-03 Keppel Towers

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