v2 Report - Additional Information Supplement EHF Eastern Hi Fi Group Limited	IPOs and Investment Opportunities
Press releases   Eastern Hi Fi Group Limited EHF 13 Sep, 2007, 15:15 HALFYR EHF Preliminary Announcements - Half year results Full Text of Announcement Issuer Name: Eastern HiFi Group Results for announcement to the market Reporting Period: Six Months to 30-Jun-07 Previous Reporting Period: Six Months to 30-Jun-06 Amount ($'s); Percentage change Revenue from ordinary activities: 7,372,944 ;+ 4% Loss from ordinary: activities after tax attributable to security holder: (174,011); + 71% Net profit (loss) attributable to security holders:(174,011); + 71% - It is not proposed to pay dividends The first half has shown a significant improvement on last years result to June with a reduction in the after tax loss from $593,000 to $174,000. Stocks have been reduced by $1 million and the outflow of cash from operating activities reduced from ($565,000) to ($76,000). Gross Margin has improved and Creditors have been reduced from $2.8 million to $2.1 million. The Directors are focused on increasing revenue but recognise that in the current retail climate that this will take time. The Directors have accordingly resolved not to pay an interim dividend. Rick Bettle Chairman
Chairman's report   Trading conditions in our industry in the second half of 2006 have been the most difficult the company has experienced in the last 10 years. The combination of exchange rate fluctuations, high oil prices, parallel importing and high levels of competition have squeezed margins to levels not seen before.  Flat panel televisions, in particular, have suffered from intense brand competition and this too, has impacted margins negatively. The companies’ second half result is, therefore, down on expectations as last quarter sales came in 16% down on budget. As a result the audited accounts show a reduced loss for the second half bringing the full year loss to $995,000 after amortization of goodwill of $366,000.  Intense efforts have been made to reduce stock levels, accounts payable and debtors and so operating cash flow have not been overly impacted. 2007 looks set to be relatively demanding and the directors are taking steps to return the company to profitability this year. Rick Bettle Chairman
Director's Report	Investment Centre
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