Sealegs Reports 86% Revenue Growth

Sealegs Reports 86% Revenue Growth

Auckland, 18 May 2007: Sealegs Corporation Limited (NZX:SLG) has today announced record operating revenue for the year ending March 31 2007.

The listed amphibious marine craft manufacturer reported operating revenue for the full year (31 March) of $5.35M, an increase of 86% on last years operating revenue of $2.87M. Total deficit for the year was $1.05M compared with $1.21M for the previous year.

Sealegs CEO David McKee Wright says that last October Sealegs signalled it was receiving increasing demand and as a result increased forecast sales from $4M to $5M. “We have exceeded that forecast, which is most encouraging. This is the second consecutive year of 86% compounding growth in sales and it is a trend we are striving to repeat."

Although the company is managing the continued increase in demand with a corresponding increase in production, this has involved moving to larger manufacturing premises three times in the last three and a half years, which has had cost effects.

Even so, the operating deficit, after Research and Development (R&D) expenses are excluded, has been reduced by 54% to $0.49M compared to $1.07M for the previous year. R&D expenses relating to future model development has been fully expensed rather than capitalised.

Commenting on the result, Sealegs CEO David McKee Wright said “this is a great result for last year and the new factory, growing order book and strong international demand puts us in a good position going forward. We are planning to continue our aggressive expansion into worldwide markets and to ramp-up production, marketing and internal systems to support that growth. This will require further investment as we work towards our goal of building Sealegs into a global company.”

Sealegs enters its new financial year with orders for over 50 boats already pre-sold, representing approximately $4 million in future revenue and is ramping up to a production capacity of approximately 200 boats per annum by next financial year.

Sealegs also advised that it plans to have its AGM in Auckland on 31st July 2007.

About Sealegs Corporation

Sealegs Corporation Limited is a public company listed on the New Zealand Stock Exchange Main Board with the ticker symbol SLG.

Sealegs Corporation owns 100% of Sealegs International Limited, the world's leading manufacturer of amphibious boats.

Sealegs International has developed a patent-pending system of hydraulically motorised, steerable and retractable wheels for amphibious boats.
Sealegs set a new world record for the fastest crossing of the English Channel by an amphibious vehicle in June 2005.
Sealegs amphibious boats are used by customers in New Zealand, Australia, Kuwait, UAE, South Korea, France, UK and the USA.

For high resolution media photos of the new factory see

www.sealegs.com/infomedia.asp

ENDS

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