Interim Results

Advanced Smartcard Technologies plc
07 June 2006

                         ADVANCED SMARTCARD TECHNOLOGIES
                           HERALDS PLATFORM FOR GROWTH

Advanced Smartcard Technologies plc (RIC: SMRT/L) ("the Company"), the Scottish 
based software group specialising in smartcard technology, has today announced 
its interim results for the period to 31 March 2006.

•IPO in December 2005 raised £750,000 (gross).
•Further £850,000 (gross) raised in March through a further placing of new shares.
•Contract wins with Royal Bank of Scotland and Transport Scotland.
•Further new contracts won since the half year.
•Operating profit £117,000 (2005: £41,000)
•Turnover £700,000 (2005: £932,000)*

* Comparative reduction in turnover due to a change in order mix, where in 2005
relatively more product was sold with lower margin hardware.

David Braddock, Chief Executive said:

"  We are delighted with this half year result and have made a significant 
improvement in profitability.  The Company has made great strides forward in 
terms of efficiency and the quality of the product we offer.  We have already 
seen the clear benefits of this. The Company has won contracts with new blue chip 
clients and gained further orders from existing clients.  We feel this represents 
a real step forward for the Company and the shareholders."

"  Since the IPO in December, we have invested in our platform for growth by 
strengthening our sales and marketing, and engineering teams to exploit our 
chosen markets.  Through this investment we are confident that we will continue 
to extend the pipeline of new business.  We expect this additional capability to 
yield results in getting our key product, Multefile, into more deployments over 
the range of our chosen markets where we can develop a significant market share 
in the coming years.  Since 31 March 2006 we are delighted to have won further 
business with subsidiaries of The Royal Bank of Scotland Group PLC and also with 
ITI Techmedia, a company  set up with the support of the Scottish Executive to 
drive Scotland's ambitious plans to identify and commercialise valuable 
technology-based intellectual  assets."

"  The contracts will develop further our business in the areas of secure 
smartcard transport ticketing and anti-counterfeiting activity."

" The marketplace for smartcards systems is massive.  By using our Multefile
software, smartcard system operators can alter their services and applications,
without having to recall thousands of cards.  We are pleased that this
groundbreaking software is being adopted at an early stage in a number of
significant trial projects."

" Looking forward, the future remains bright. We are pleased with our excellent
sales prospect list.  I am confident that we will continue to win new orders and
improve the Group's financial performance."

                                      -ends-

Date: 7 June 2006

For further information contact:

Advanced Smartcard Technologies plc                       01355-268521
David Braddock, Managing Director
Stephen Naylor, Finance Director

SVS Securities                                            020 7638 5600
Ian Callaway
Peter Manfield

cityPROFILE                                               020 7448 3244
Simon Courtenay
Andrew Harris


NOTES TO EDITORS

About Advanced Smartcard Technologies plc

Advanced Smartcard Technologies plc, through its wholly owned subsidiary Ecebs
Limited, is a profit making, software company operating in the dynamic and
expanding smartcard arena. SMRT listed on AIM in December 2005. The Company
provides smartcard technology to a wide range of user markets including
transport, ID, healthcare, finance and local and national government departments
and blue-chip companies.

About Us

The Company, through its wholly owned subsidiary Ecebs Limited, is a high
margin, profit-making, software company with a rapidly growing blue-chip client
base, operating in the dynamic and expanding smartcard arena.

Ecebs commenced trading in August 2000. It was launched by three experienced IT
industry players and is based in East Kilbride, near Glasgow. The business
specialises in software for smartcard systems and has developed and patented a
new, ground breaking technology solution, branded MultefileTM, that is set to
radically improve the way smartcard software applications are developed and
deployed. The key feature of the software is its ability to reduce development
time and cost while increasing client functionality and ease of use which will
increase the flexibility of smartcard solutions.

MultefileTM is enabling software that has already been licensed to a range of
customers in different markets and has the potential to change the smartcard
market completely.

The demand for smartcards has grown at a phenomenal rate in the last ten years,
primarily driven by the telecoms (SIM cards for mobile phones) and banking
('chip and pin') markets. It is, however, in the new areas of transport
ticketing (for example, Transport for London's OysterTM cards for London
Underground and bus transport; Hong Kong's Octopus Card; San Francisco's
Translink(R) card), personal identification (such as electronic passports and
driving licences); and health and leisure, along with physical and virtual
access control, where MultefileTM can bring the greatest benefit.


Chief Executive's Statement

Advanced Smartcard Technologies has had a very successful first half of the
year, our maiden period as a quoted company, following our listing on the
Alternative Investment Market (AIM) in December 2005. The Company is delighted
to report continued profitable trading and a record half year operating profit,
together with significant progress towards our longer term strategic objectives.

Following our successful flotation on AIM we have continued the planned
development of our business in our chosen markets. The flotation raised a total
of £750,000 before costs and following some further new developments a secondary
placement in March 2006 raised an additional £850,000 before costs. This funding
has provided an excellent platform from which to accelerate our growth
strategies for the Group.

Financial results

Turnover for the half year was £700,000 (2005 half year £932,000) and operating
profit was £117,000 (2005 half year £41,000). The comparative reduction in
turnover was due to a change in order mix where in 2005 relatively more product
was sold containing an element of lower margin hardware. In the current half
year, the order mix has been towards more favourable higher margin software
development activity. Moreover, the period has seen increased use of our
patented, core intellectual property, Multefile, which has contributed to
improved profitability. The resulting higher gross profit together with tight
control of overheads has allowed a significant improvement in operating profit,
up 285% over the equivalent period last year. Looking forward, our main
activities should continue to move more towards higher margin software sales.
However, where our customers require us to provide for them our software
preinstalled on a hardware platform, this will result in an element of revenue
at lower margins (due to the external direct costs of sale) depending on order
cycles for those products.

Sales and marketing development

As part of our growth strategy, we have made a commitment to increasing the
investment in our sales and marketing capability. Since the listing in December
we have accelerated significantly our plans for improving our account and
channel management capability by engaging additional experienced resource in
this area. We are delighted that in addition to a Business Development Director
and Sales Manager being recruited for Ecebs Limited (a wholly-owned subsidiary)
an additional overseas agent has also been signed up. The attributes of
Multefile are increasingly being recognised and in particular its suitability
for a wide range of smartcard applications. We expect this additional capability
to yield results in getting Multefile into more deployments over the range of
our chosen markets where we can develop a significant market share in the coming
years. It is also encouraging that these additional sales and marketing
personnel have approached the Group due to their interest in Multefile and
belief in its market changing potential.

Product refinement

Multefile technology differs radically from that of established players in the
smartcard arena in that it is not specific to any particular market sector and
can be managed by the card issuers themselves. Therefore it is applicable to
areas as diverse as payment, transport, Identity, GSM, Biometric, Health and
Welfare. The capability for card issuers to amend, add and delete new
functionality, via a series of user friendly point and click interfaces, coupled
with end to end secure technology, is becoming a compelling proposition. Not
only can it enable existing requirements to be provided in a more efficient
manner, it also enables niche applications to be introduced alongside more
mainstream ones. This improves dramatically the benefit of smartcards both to
issuers and users.

Multefile is not limited in physical form factor either. Not only can it be used
in conventional contact and contactless smartcards but also in a variety of
other 'smart' devices.

We have also recruited additional specialist engineering staff in Scotland to
continue the Multefile-based development as a direct result of the capital
raising and are confident of meeting our requirements in this area.

The Group plans to significantly invest in marketing efforts, timed to coincide
with new Multefile product releases.

Customers and prospects

We have continued to partner several blue-chip clients and have won significant
new orders which lead us into exciting growth markets.

We are carrying a healthy order book forward into the second half. Our sales
prospect list remains strong with many good prospects that will take us further
into our chosen niche markets. We have continued to make good progress with
customers in a number of sectors including transport, anti-counterfeiting and
local authority business. Development in healthcare markets continues but at a
slightly lesser pace.

We continue to win repeat business from existing clients and add new ones to our
portfolio. In this regard we are developing working relationships with these
clients on a longer term basis some of whom are large blue chip organisations.
We are also at an advanced stage in progressing a number of agreements with
industry or sector representative organisations which would incorporate
Multefile in their standard requirements providing exciting opportunities for
future business growth as Multefile would become an underlying technology for
these initiatives.

The Group is also being asked to participate in the tendering process as the
smartcard technology provider with prospective partner organisations in large
international projects. Whilst the gestation period for these tenders can be
long - anything up to 18 months - the fact that organisations are approaching us
with a view to including Multefile in the early stages of these projects is
testament to the growing interest offered by the technology.

Outlook

Looking forward, the prospects for the Group are very promising. We have an
excellent order book and sales prospect list which include many blue-chip
organisations. With the proceeds of our flotation giving us the ability to
invest in our platform for growth, we are looking to the future with confidence.
This together with the exceptional capabilities and motivation of our staff
should ensure that progress continues in the second half.

David Braddock
Chief Executive


Consolidated Profit and Loss Account
For the six months ended 31 March 2006




                                            6 Months to  6 Months to   12 Months to
                                               31 March     31 March   30 September
                                                   2006         2005           2005
                                             (unaudited)  (unaudited)      (audited)
                                     Notes        £'000        £'000          £'000
------------------------------------------------------------------------------------        
Turnover                                            700          932          1,952
Cost of sales                                       (82)        (362)          (796)
------------------------------------------------------------------------------------
Gross profit                                        618          570          1,156
Administrative expenses                            (501)        (529)        (1,003)
------------------------------------------------------------------------------------
Operating profit                                    117           41            153
Net interest                                        (19)         (20)           (42)
------------------------------------------------------------------------------------
Profit on ordinary activities
before taxation                                      98           21            111
Tax credit on profit on ordinary
activities                               2            -            3              3
------------------------------------------------------------------------------------
Profit transferred to reserves                       98           24            114
====================================================================================
Earnings per share                       4
------------------------------------------------------------------------------------
Basic                                             0.052p
------------------------------------------------------------------------------------
Diluted                                           0.051p
------------------------------------------------------------------------------------

There were no recognised gains or losses other than the profit for the financial period.

Consolidated Balance Sheet
At 31 March 2006



                                               31 March     31 March  30 September
                                                   2006         2005          2005
                                             (unaudited)  (unaudited)     (audited)
                               Notes              £'000        £'000         £'000
------------------------------------------------------------------------------------    
Fixed assets
Intangible assets                                   525          216           337
Tangible assets                                      68           66            65
Investments                                          40           40            40
------------------------------------------------------------------------------------
                                                    633          322           442
Current assets
Stock                                                39            6             -
Debtors                           5                 777          544           120
Cash at bank and in hand                            423            -           259
------------------------------------------------------------------------------------
                                                  1,239          550           379

Creditors: amounts falling due
within one year                                  (1,157)      (1,208)       (1,066) 
------------------------------------------------------------------------------------
Net current assets/                                  82         (658)         (687)
(liabilities)                 
------------------------------------------------------------------------------------      
Total assets less current
liabilities                                         715         (336)         (245)
====================================================================================

Creditors: amounts falling due
after more than one year                              -          480           480

Capital and reserves
Called up share capital                              71           53            54
Share premium account                             1,321            4             4
Other reserves                                        8            -             -
Profit and loss account                            (685)        (873)         (783)
Shareholders' funds                                 715         (816)         (725)
------------------------------------------------------------------------------------
      
                                                    715         (336)         (245)
====================================================================================      


Consolidated Cash Flow Statement
For the six months ended 31 March 2006



                                            6 Months to  6 Months to  12 Months to
                                               31 March     31 March  30 September
                                                   2006         2005          2005
                                             (unaudited)  (unaudited)     (audited)
                                                  £'000        £'000         £'000
------------------------------------------------------------------------------------                  
Reconciliation of operating profit to operating
cash (outflow)/inflow
Operating profit                                    117           41           153
Depreciation and amortisation                        30           26            53
(Increase)/decrease in stock                        (39)           2             8
(Increase)/decrease in debtors                     (657)         (36)          388
(Decrease)/increase in creditors                   (431)         329           582
Increase in advances received                        42          392           130
------------------------------------------------------------------------------------
Net cash (outflow)/inflow from
operating activities                               (938)         754         1,314
Returns on investments and servicing of finance
Interest received                                     2            -             1
Interest paid                                       (21)         (17)          (40)
------------------------------------------------------------------------------------
Net cash inflow/(outflow) from
returns on investments and
servicing of finance                                (19)         (17)          (39)
------------------------------------------------------------------------------------
Taxation                                              -            3             3
Capital expenditure and financial investment
Purchase of intangible fixed assets                (204)         (77)         (210)
Purchase of tangible fixed assets                   (17)         (14)          (28)
Purchase of investments                               -          (40)          (40)
------------------------------------------------------------------------------------
Net cash outflow from capital
expenditure and financial
investment                                         (221)        (131)         (278)
------------------------------------------------------------------------------------

Financing
Increase in share capital                         1,342            -             1
Repayment of borrowing                                -         (465)         (468)
------------------------------------------------------------------------------------
Net cash inflow/(outflow) from
financing                                         1,342         (465)         (467)
------------------------------------------------------------------------------------

Increase in cash                                    164          144           533
====================================================================================


Notes to the Interim Report
For the six months ended 31 March 2006

1.       Basis of preparation

The group accounts consolidate the accounts of the company and its interests in
subsidiaries. A new parent company, Advanced Smartcard Technologies plc, was
incorporated on 21 November 2005 to be the vehicle for capital raising and
admission to the Alternative Investment Market. This company acquired the whole
of the issued share capital of the former parent company, Ecebs Group Limited,
by way of a share-for-share exchange. This has been accounted for using merger
accounting principles. The effective date of the merger was 22 November 2006.
The results of the group comprise the results of Advanced Smartcard Technologies
plc from its date of incorporation consolidated with the results of the merged
group from 1 October 2005. The first full accounting period will be the period
to 30 September 2006.

The financial information for the six months ended 31 March 2006 is unaudited
and does not constitute statutory accounts within the meaning of section 240 of
the Companies Act 1985. The financial information for the year ended 30
September 2005 has been extracted from the consolidated statutory accounts of
Ecebs Group Limited, the former holding company, which have been reported on by
the auditors and have been delivered to the Registrar of Companies. The audit
report on those financial statements was unqualified. The interim financial
information has been prepared using consistent accounting policies as set out in
the 2005 statutory accounts of Ecebs Group Limited.

2. Taxation

There is no tax charge for the period due to tax losses brought forward in the
group at 1 October 2005 of approximately £372,000.

3. Dividend

The Directors do not propose to pay a dividend for the period.

4. Earnings per share

Basic earnings per share for the six months ended 31 March 2006 is calculated on
the basis of the profit for the period of £98,000 divided by the weighted
average number of shares in issue of 187,150,575. Diluted earnings per share is
calculated on the assumption that all vested options are exercised which would
give rise to a total weighted average number of shares in issue for the six
months to 31 March 2006 of 193,039,766. Earnings per share for the comparative
periods was not a statutory disclosure as a private company.

5. Debtors

Debtors at 31 March 2006 includes an amount of £439,000 in respect of settlement
terms of cash subscriptions for share issues. These amounts have been received
in cash since 31 March 2006.





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