Half Yearly Report

Appendix 4D

eServGlobal Limited

ABN 59 052 947 743

Half-year report and appendix 4D

for the half-year ended 31 December 2009

The half-year financial report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the 2009 annual financial report.

Half-year report and appendix 4D

for the half year ended

31 December 2009

Contents

Results for announcement to the market 1

Directors' Report 2

Auditor's Independence Declaration 4

Independent Review Report 5

Directors' Declaration 7

Condensed consolidated Statement of Comprehensive Income 8

Condensed consolidated Statement of Financial Position 9

Condensed consolidated Statement of Changes in Equity 10

Condensed consolidated Statement of Cash Flows 11

Notes to the condensed consolidated Financial Statements 12

Results for announcement to the market

Directors' report

The directors of eServGlobal Limited submit herewith the financial report of eServGlobal Limited and its controlled entities (the Group) for the half-year ended 31 December 2009. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

The names of the directors of the company during or since the end of the half year are:

David Smart Non Executive Chairman

Richard Mathews Chief Executive Officer & Director

François Barrault Non Executive Director

Ian Buddery Non Executive Director

Anthony M Eisen Non Executive Director

Michael Jefferies Alternate Non Executive Director for Anthony M Eisen

Laurent Lafarge Former Chief Executive Officer & Former Director - resigned 23 July 2009

Anthony Gilbert Former Non Executive Director - retired 1 October 2009

Graham Libbesson Non Executive Director - resigned 23 July 2009

Jim Pratt Non Executive Director - resigned 23 July 2009

Review of Operations

This report is to be read in conjunction with other reports issued contemporaneously.

eServGlobal Limited is a public company listed on the Australian Securities Exchange (ASX:ESV) and the London Stock Exchange (AIM) (LSE:ESG). Along with its Head Office in Sydney, Australia, the eServGlobal group has operations worldwide.

eServGlobal provides solutions for Smarter Transaction Management, driving more value from each telecom transaction.

We enable new business models for tomorrow, while maximizing our customers' investments today. Mobile, fixed, Internet and multi-play communications providers use our world-leading, real-time capabilities to significantly increase revenues, customer loyalty and expenditure efficiency.

Today more than 80 customers, in over 50 countries, perform over 2.4 billion transactions per day using our solutions. eServGlobal has the largest convergent charging and payments installed bases in the world.

Our customers drive our solutions which are rapidly developed and deployed to allow the customer to succeed in changing markets. This customer led approach to our business enables our customers to quickly create and launch new services and personalized, real-time promotions to lead and innovate in their markets.

With 16 offices globally we provide flexible end-to-end solutions with ongoing product development and worldwide implementation and support services.

The consolidated entity achieved sales revenue for the period of $43.763 million (2008 $83.093 million) - a decrease of 47%. The gross profit realised was $20.207 million (gross profit margin: 46%) (2008 $43.724 million (gross profit margin: 53%)). EBITDA for the period was a loss of $7.746 million (2008 EBITDA profit $7.065 million).

The net result of the consolidated entity for the half year ended 31 December 2009 was a loss after tax and minority interest for the period of $11.926 million (2008 $0.602 million profit after tax). Loss per share was 6.1 cents (2008: EPS 0.4cents).

In accordance with the Group's accounting policies, development expenditure incurred during the period of $1.289 million was capitalised in the Statement of Financial Position. The expenditure related to internally generated software comprising the HomeSend platform.

During the period, the operating cash flow for the period was a net outflow of $7.091 million primarily resulting from the settlement of compensation payments to departing employees. Cash at 31 December 2009 was $3.420 million. It is anticipated that the cash balance will improve in the second half.

Auditor's independence declaration

The auditor's independence declaration is included on page 4 of the half-year financial report.

Rounding off of amounts

The company is a company of the kind referred to in ASIC Class Order 98/0100, dated 10 July 1998, and in accordance with that Class Order amounts in the directors' report and the financial report are rounded off to the nearest thousand dollars, unless otherwise indicated.

Signed in accordance with a resolution of the directors, made pursuant to s.306(3) of the Corporations Act 2001.

On behalf of the directors

David Smart

Chairman

Sydney, 22 February 2010

 Deloitte Touche Tohmatsu ABN 74 490 121 060 Grosvenor Place 225 George Street Sydney NSW 2000 PO Box N250 Grosvenor Place Sydney NSW 1217 Australia DX 10307 S S E Tel: +61 (0) 2 9322 7000 Fax: +61 (0) 2 9322 7001 www.deloitte.com.au

The Board of Directors

eServGlobal Limited

Level 3

6 O'Connell Street

Sydney NSW 2000

Dear Board Members

eServGlobal Limited

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of eServGlobal Limited.

As lead audit partner for the review of the financial statements of eServGlobal Limited for the half-year ended 31 December 2009, I declare that to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

(ii) any applicable code of professional conduct in relation to the review.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

Weng Ching

Partner

Chartered Accountants

Sydney, 22 February 2010

Liability limited by a scheme approved under Professional Standards Legislation.

Deloitte Touche Tohmatsu A.B.N. 74 490 121 060 Grosvenor Place 225 George Street Sydney NSW 2000 PO Box N250 Grosvenor Place Sydney NSW 1220 Australia DX 10307SSE Tel: +61 (0) 2 9322 7000 Fax: +61 (0) 2 9322 7001www.deloitte.com.au

Independent Auditor's Review Report

to the members of eServGlobal Limited

We have reviewed the accompanying half-year financial report of eServGlobal Limited, which comprises the condensed consolidated statement of financial position as at 31 December 2009, and the condensed consolidated statement of comprehensive income, the condensed consolidated statement of cash flows and the condensed consolidated statement of changes in equity for the half-year ended on that date, selected explanatory notes and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at the end of the half-year or from time to time during the half-year as set out on pages 7 to 15.

Directors' Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of Interim and Other Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2009 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of eServGlobal Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Liability limited by a scheme approved under Professional Standards Legislation.

Auditor's Independence Declaration

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of eServGlobal Limited is not in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2009 and of its performance for the half-year ended on that date; and

(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

DELOITTE TOUCHE TOHMATSU

Weng Ching

Partner

Chartered Accountants

Sydney, 22 February 2010

Directors' declaration

The directors declare that:

a) in the directors' opinion, there are reasonable grounds to believe the company will be able to pay its debts as and when they become due and payable; and

b) in the directors' opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.

Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act 2001.

On behalf of the directors

David Smart

Chairman

Sydney, 22 February 2010

Condensed consolidated statement of comprehensive income

for the half-year ended 31 December 2009

Notes to the Financial Statements are included on pages 12 to 15 Condensed consolidated statement of financial position

as at 31 December 2009

Notes to the Financial Statements are included on pages 12 to 15 Condensed consolidated statement of changes in equity

for the half-year ended 31 December 2009

Notes to the Financial Statements are included on pages 12 to 15 Condensed consolidated statement of cash flows

for the half-year ended 31 December 2009

Notes to the Financial Statements are included on pages 12 to 15

Notes to the consolidated financial statements

1. Significant accounting policies

Statement of compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half-year financial report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the most recent annual financial report.

Basis of preparation

The condensed financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars.

The company is a company of the kind referred to in ASIC Class Order 98/010, dated 10 July 1998, and in accordance with that Class Order amounts in the directors' report and the half-year financial report are rounded off the nearest thousand dollars, unless otherwise indicated.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the company's 2009 annual financial report for the financial year ended 30 June 2009, unless otherwise stated.

Adoption of New and Revised Accounting Standards

The company has adopted all of the new and revised standards and interpretation issued by the Australian Accounting Standards Board that are relevant to its operations and effective for the current reporting period.

The adoption of these new and revised standards and interpretations has resulted in changes to the presentation of the half year financial statements in the following areas:

(i) Revised AASB 101: Presentation of Financial Statements and AASB2007-8: Amendments to

Australian Accounting Standards arising from AASB101 (effective from 1 January 2009).

The September 2007 revised AASB 101 required the presentation of a statement of comprehensive income and makes changes to the statement of changes in equity, but has not affected any of the amounts recognised in the financial statements.

Comparative balances in the condensed statement of comprehensive income

In the prior period, certain Administrative Expenses incurred were allocated to Cost of Sales and Selling and Marketing Expenses which were not allocated in the current period. The comparative balances have been reclassified to conform with the current period's presentation which resulted in the reduction in the comparative period's Cost of Sales by $2,191,000 and Sales & Marketing by $255,000 and the increase in the comparative period's Administrative Expenses by $2,416,000.

2. Current trade and other receivables

3. Other intangible assets

4. Other Current Liabilities

5. Dividends

6. Segment Information

The Group operates in a single segment being the telecommunications software solutions business.

7. Issuances, repurchases and repayment of securities

During the half-year, the company did not issue any shares.

During the half-year ended 31 December 2008, the company issued 1,026,000 ordinary shares for $294,000 on exercise of 1,026,000 share options issued under its executive and employee share option plans. As a result of this share issue, $123,000 was transferred from the equity-settled employee benefits reserve to issued capital. There were no other movements in the ordinary share capital or other issued share capital of the company in the prior comparative half-year.

The company did not issue share options over ordinary shares under its executive and employee share option plan during the half-year reporting period (6 months to 31 December 2008: nil).

8. Facilities

Subsequent to balance date, the company renewed its $5 million bank bill facility to 30 June 2010. The facility is subject to a range of covenants and provisions.

9. Issued Capital

10. Reserves

Other information required to be given to ASX under listing rule 4.2A.3

Details of associates and joint venture entities