Half Yearly Report

12 September 2011

NetDimensions (Holdings) Limited

("NetDimensions" or the "Company")

Interim Results for the six months ended 30 June 2011

NetDimensions (AIM: NETD), the global provider of enterprise-class performance, knowledge and learning management related software and services, enabling organisations to manage their training programs, announces interim results for the six months ended 30 June 2011.

Financial Highlights

·; Revenue increased 31% to US$4.4m (H1'10: US$3.3m)

·; Loss of US$0.7m (H1'10: loss of US$0.3m)

o After including US$0.2m intangible asset amortisation, US$0.2m non cash share based compensation, US$0.1m foreign exchange gain and gain on disposal of an associate.

·; Deferred revenue up 26% to US$ 2.8m (H1'10: US$ 2.3m)

·; Headcount up to 99 from 73 at the end of H1'10 (headcount at year end: 88)

·; Strong cash position of US$5.9m - equated to 14.4p in cash per share at 30 June 2011 currency rates (2010 year end: US$6.0m) after US$0.2m share repurchase during the period

Operations Highlights

·; Added 63 new clients through direct sales or resellers including;

o Renishaw Plc;

o Brigham Young University;

o IKON AS;

o Service Strategies; and

o Omega Performance Corporation.

·; Added 4 major resellers including;

o Intekras, a major US professional services company offering core solutions in information assurance, technical services and workforce development in US federal, state and local governments as well as commercial entities;

o Training Partners, a wholly owned subsidiary of Dimension Data specialising in IT infrastructure for learning & development; and

o Aurion Limited, a company which designs and delivers award winning e-learning tools; and

o Tatweer International for Human Development S.A.E., a regional workforce training solution provider in Egypt.

·; Incorporated the CFR 21 Part 11 compliance within EKP, an indispensable requirement in pharmaceutical industry

·; Released a major new versions of our flagship LMS product - EKP 7.0 and 7.1

·; Improvement of our mobile version - mEKP enabling course download and encryption

Roger Durn, Chairman of NetDimensions, commented: "NetDimensions has been trading in line with expectations and we continue to see significant growth for our business in Asia / China and other emerging markets. We believe our target markets will continue to be in highly regulated and compliance driven industries and in outwardly focused, extended enterprise deployments.

"These last six months have been a successful period with the Company recording impressive revenue growth. The Board is confident that this strong trading will continue in the second half of the year and the Company is well-positioned to grow."

Enquiries:

CHAIRMAN'S STATEMENT

Financial Summary

The Company achieved 31% growth in sales to US$4.4m for the first half of the year (2010: US$3.3m); of this, organic growth contributed 20% with the balance from acquisitions and strategic investments that the Company made in 2010.

Due to seasonality of the business the Company is usually loss making at the half year stage. The Company recorded a loss before tax of US$0.7m for the six months ended 30 June 2011. This loss includes the non-cash and one-time extraordinary items of US$0.2m intangible asset amortisation, US$0.2m share based compensation and US$0.1m foreign exchange gain and gain on disposal of an associate, excluding which the loss before tax would have been reduced to US$0.4m. During this period, the Company's headcount increased by 26 to a total of 99. This major increase consisted of ten staff joining from prior acquisitions as well as our investment in eleven sales related personnel in the US, China and other regions to aid the Company's expansion.

The Company maintained a strong cash position of US$5.9m net of a US$0.2m share buyback during the period. The Board anticipates that the Company's cash position will continue to improve as sales materialise during the second half of the year.

The Board is not recommending the payment of a dividend at this time due to the need to conserve cash for future Company growth. However, it is the Board's intention to pay dividends in the future.

Operations Review

In the first half of 2011 NetDimensions generated revenue growth through the integration of the EKP distribution business acquired last year in the UK and US. We will continue to see further benefit from the realisation of synergies arising from acquisitions earlier in the year. We are pleased that the new Shanghai office began trading with a team of four sales staff and has generated sales in line with expectations.

First half new client wins came from both direct and partner-led sales worldwide. In the six months under review we won 63 new clients, many of which operate in highly regulated, compliance driven environments and aim to generate efficiencies through the application of NetDimensions' products. In addition, the Company signed up four resellers to expand our global geographical and industrial footprint.

Our engineering has been focused on existing product upgrades with version EKP 7.0 & 7.1 and also mEKP which now has improved course download and encryption functionality. Greater penetration of the pharmaceutical industry has been achieved by successfully incorporating the CFR 21 Part 11 compliance in EKP. The engineering team have also developed EKP usage via mobile device & created social networking capabilities.

Current Trading and Outlook

NetDimensions has been trading in line with expectations and we continue to see significant growth for our business in Asia / China and other emerging markets. We have not yet seen a significant impact from the continued eurozone financial issues or the US budget crisis that led to a US treasury downgrade.

NetDimensions' strong cash position on 30 June 2011 at US$5.9m will provide a solid financial base for the Company to manage uncertainty from further economic problems in the US & Europe that may arise in the later part of the year.

We believe our target markets will continue to be in highly regulated and compliance driven industries and in outwardly focused, extended enterprise deployments.

These last six months have been a successful period, with the Company recording impressive revenue growth. The Board is confident that this strong trading will continue in the second half of the year and the Company is well-positioned to grow.

Roger Durn

Chairman of the Board

12 September 2011

NETDIMENSIONS (HOLDINGS) LIMITED

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THESIX MONTHSENDED 30 JUNE 2011

The notes on pages 9 to 19 form an integral part of these condensed consolidated interim financial statements.

NETDIMENSIONS (HOLDINGS) LIMITED

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THESIX MONTHSENDED 30 JUNE 2011

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT30 JUNE 2011

The notes on pages 9 to 19 form an integral part of these condensed consolidated interim financial statements.

NETDIMENSIONS (HOLDINGS) LIMITED

CONDENSED CONSOLIDATED STATEMENTOF CHANGES IN EQUITY 

FOR THE SIX MONTHSENDED 30 JUNE 2011 (UNAUDITED)

NETDIMENSIONS (HOLDINGS) LIMITED

CONDENSED CONSOLIDATED STATEMENTOF CHANGES IN EQUITY 

FOR THE SIX MONTHSENDED 30 JUNE 2010 (UNAUDITED)

FOR THE YEAR ENDED 31 DECEMBER 2010 (AUDITED)

NETDIMENSIONS (HOLDINGS) LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2011

Analysis of balances of cash and cash equivalent

The notes on pages 9 to 19 form an integral part of these condensed consolidated interim financial statements.

NETDIMENSIONS (HOLDINGS) LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. GENERAL INFORMATION

The Company was incorporated in the Cayman Islands as a limited liability company underthe Companies Law (2000) Revision on 10 July 2000.  The registered office of the Company is located at P.O. Box 309, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies. Its principal place of business is located at17/F., Siu On Centre, 188 Lockhart Road, Wan Chai, Hong Kong.

The principal activities of the Company and its subsidiaries (hereinafter collectively referred to as the "Group") are licensing of computer software and the provision of related services. The principal activity of the Company is investment holding.

The Company's shares were admitted to trading on the Alternative Investment Market ("AIM") of the London Stock Exchange. These condensed consolidated interim financial statements are presented in United States Dollars, unless otherwise stated, and were approved for issue by the Board of Directors on 12 September 2011.

These condensed consolidated interim financial statements for the six months ended 30 June 2010 and 2011 have not been audited.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

The Company has a financial year end date of 31 December. These condensed consolidated interim financial statements for the six months ended 30 June 2011 have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting".  These condensed consolidated interim financial statementsshould be read in conjunction with the annual financial statements of the Group for the year ended 31 December 2010.

(b) Significant accounting policies

The condensed consolidated interim financial statements have been prepared under the historical cost convention except for certain financial assets and liabilities which are stated at fair value, as appropriate.

The accounting policies and methods of computation used in the preparation of these condensed interim accounts are consistent with those used in the 2010 annual accounts, except for the adoption of the revised standards, amendments and interpretations issued by the International Accounting Standards Board that are relevant to the Group's operations and mandatory for annual periods beginning 1 January 2011.

The effect of the adoption of these revised standards, amendments and interpretations was not material to the Group's results and financial position.

During the period, a number of new and revised standards, amendments and interpretations were issued by the International Accounting Standard Board but not yet effective this year. Management is in the process of assessing the impact of these new and revised standards, amendments and interpretations.

NETDIMENSIONS (HOLDINGS) LIMITED

NOTES TO THECONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

3. SUMMARY CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were that same as those that applied to the consolidated financial statements for the year ended 31 December 2010.

 4.  SEGMENT INFORMATION

The Group operates in three geographic segments, North America, Europe, Middle East and Africa ("EMEA")and Rest of the World. These geographic segments are the basis on which the Group reports its primary segment information, as presented below:

Management reassesses the location of customers in Asia Pacific and defines them from EMEA to Rest of the World. Certain prior period figures have been adjusted to conform with the current period's presentation.

Segmental information for the six months ended 30 June 2011:

Information about major customers

Included in revenue arising from EMEA segment of approximately US$ 2,188,000 is revenue of approximately US$ 587,000 which arose from the Group's largest customer.

NETDIMENSIONS (HOLDINGS) LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

4. SEGMENT INFORMATION (CONTINUED)

Segmental information for the six months ended 30 June 2010:

Information about major customers

Included in revenue arising from EMEA segment of approximately US$ 1,801,000 is revenue of approximately US$ 494,000 which arose from the Group's largest customer.

NETDIMENSIONS (HOLDINGS) LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

4 SEGMENT INFORMATION (CONTINUED)

Segmental information for the year ended 31 December 2010:

Information about major customers

Included in revenue arising from EMEA segment of approximately US$ 4,332,000 is revenue of approximately US$ 1,022,000 which arose from the Group's largest customer.

NETDIMENSIONS (HOLDINGS) LIMITED

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

5. OPERATING (LOSS)/ PROFIT

Operating (loss)/profit is arrived after charging:-