Profit Upgrade - February 2005

Feb 8, 2005

ASX RELEASE - Tuesday 8th February 2005

In accordance with listing rule 3.1, Jumbo Corporation Limited (ASX:JUM) advises that it expects to release a substantial increase in profits for the 6 months ending 31 December 2004 compared to the corresponding period in 2003. Based on unaudited results, directors now expect the Net Profit after Tax to exceed $250,000 compared to $115,408 for the 6 months ending December 2003.

“Jumbo has had a strong Christmas period as a result of our improved online marketing activities and our expanding customer database”, said Mr Mike Veverka, CEO of Jumbo. “The online retailing market continues to thrive as improved Internet security and consumer acceptance has expanded the market globally”.

This result is due to a number of factors but primarily:

• Strong Christmas trading in Jumbo’s portfolio of “Internet friendly” goods.

• Improved marketing techniques resulting in higher sales and better conversion rates.

• Improvements to the JumboStore software for handling online sales and customer support.

• Continued strong growth in the global online retailing market.

• Growth of customer database which now stands at over 300,000 unique customers that have made purchases, up from 250,889 at 30 June 2004.  

Shareholding in Global Approach Limited (ASX:GLO)

The result does not include the increase in value of the companies’ major shareholding in Global Approach, an owner of 2 online casinos and an online poker room. Based on yesterdays closing share price of 16.0c, the value has risen from a cost base of $700,549 to $1.56 million.

“Global Approach has turned out to be an excellent investment by Jumbo, not only for the increase in value of our shares, but also from the knowledge gained from the association”, said Mr Mike Veverka, CEO of Jumbo Corp. “A number of synergies exist between online retailing and online gaming, especially in the field of marketing and payment technologies”.

The company expects to release the audited results soon.  

Mike Veverka, CEO

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