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Traffic Technologies Earnings Guidance

Traffic Technologies Ltd (TTI) is pleased to announce earnings guidance for the financial year ended 30 June 2010. TTI expects to achieve a significant improvement in its operating result for the financial year ended 30 June 2010 compared to the previous financial year. Earnings before interest, tax, depreciation and amortisation (EBITDA) before non-recurring items is expected to increase by approximately 70% from $4.8m to $7.8-$8.4m before adjusting for disposal group held for sale. EBITDA before non-recurring items presented on a comparable basis to the previous financial year is as follows: Divestment of Traffic Management Business. In August 2010 TTI completed the sale of its Traffic Management business. The divestment of the Traffic Management business enables management to focus on the Group’s Technical Products business, while also significantly reducing Group debt. Net cash consideration for the sale is approximately $11.4m. The net proceeds of the sale, which will include the collection of net debtors, will be applied in reducing net debt by $14-$15m. Accounting standards require the results of the Traffic Management business to be classified as “disposal group held for sale” in the Annual Financial Report and the previous year results to be restated as follows: The Company expects to release its results to the market in the final week of August 2010.