ASX ANNOUNCEMENT: CUP

Tuesday, 16 July 2013

COUNTPLUS ANNOUNCES STRATEGIC INVESTMENT IN CLASS SUPER

The Directors of Countplus (CUP) have approved a strategic investment of $2.15 million (an approximate 4% interest) in Super-IP, the owner of Australia's fastest growing Self-Managed Superannuation Fund (SMSF) software administration system - Class Super (Class).
Since its launch in late 2009, Class has transformed the SMSF administration market. As the first cloud based solution, Class has offered radically different scale and efficiency capabilities, experiencing 3 straight years of triple digit growth. Recognised as the industry leader with 5 of the top 10 SMSF administration and accounting firms in Australia, Class is currently recording fund inflows of $750 million in SMSF assets per week.
After 7 years from its initial development, Class is now cash flow positive. While this investment will not be EPS accretive to CUP in the near future, it represents a strategic investment that complements CUP's core business of accounting services. Class has stated that it currently intends to list on the ASX around 2016.
CUP's CEO Michael Spurr said "Given our accountants speak very highly of Class, many of whom were early adopters of the Class system, it was not a hard decision to make this strategic investment as it complements our core business of accounting services."
"I've followed the progress of Class closely over the last few years and have been pleased to see their success, given the important role they have played in improving efficiency in SMSF administration for accountants. It's exciting that we will now be associated as shareholders." Spurr
added.

ASX Announcement - CUP 1 16 July 2013

Class's CEO Rajarshi Ray noted "We are delighted to add Countplus as another institutional investor on our share register. While we already have a long and rewarding relationship with them as a user of our software, their addition as a shareholder allows Super- IP to more closely tap into their distribution and accountant partnerships capabilities"
CUP's investment will accelerate Class' new Super and non-Super product development which is expected to significantly increase its long term profitability. CUP will fund this investment from borrowings.
CUP's Chairman Barry Lambert, who is also the Chairman of Super-IP, was not involved in the negotiation or decision making process for the transaction.

For further information please contact:

Michael Spurr
Chief Executive Officer
Countplus Limited
Ph: 02 8272 0223
Email: michael.spurr@countplus.com.au

ASX Announcement - CUP 2 16 July 2013

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