Final Results

ADVANCED SMARTCARD TECHNOLOGIES PLC
                                     (SMRT)

                             RECORD RESULTS ACHIEVED

8 January 2006

Advanced  Smartcard Technologies plc (RIC: SMRT/L) (the "Company"), the Scottish
based  software group specialising in smartcard technology, has today  announced
its final results for the year to 30 September 2006.

·    Operating profit up 92% to £294,000 (2005: £153,000)
·    Gross profit up 29% to £1,487,000 (2005: £1,156,000)
·    Turnover up at £2,019,000 (2005: £1,952,000)
·    Advances in development of our patented key product, MultefileTM
·    Sales and market development, and engineering teams strengthened to exploit
     our chosen markets
·    Good sales prospects carried forward into next year


Commenting on the results David Braddock, Chief Executive said:

"   We  are delighted to report continued profitable trading and a record annual
operating  profit,  together with significant progress towards  our  longer-term
strategic objectives.  "

"   Since the IPO in December 2005, we have invested in our platform for  growth
by  strengthening  our  sales and market development and  engineering  teams  to
exploit our chosen markets.  We believe that this strategic investment in having
world-class products will produce long-term benefits as the market develops  and
demand  for  our technology increases.  We expect this additional capability  to
yield  results  in  getting our key product, MultefileTM, into more  deployments
over  the range of our chosen markets where we can develop a significant  market
share  in  the  coming  years. During the year, we were delighted  to  have  won
additional  business  with The Royal Bank of Scotland Group  PLC  and  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. "

"  The  growth  in  demand  for  smartcard systems  continues.   By  using  our
MultefileTM  software,  smartcard solution providers and  system  operators  can
alter  their services and applications, without having to re-issue 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 progress
in  developing our business and laying the foundations for significant growth in
the  future.   I  am  confident that we will continue to win  new  business  and
improve the Group's financial performance in the coming years. "

                                     -ends-


Enquiries:

Advanced Smartcard Technologies plc         01355 268521
David Braddock, Chief Executive
Stephen Naylor, Finance Director
Website www.astplc.com

SVS Securities plc                          020 7638 5600
Ian Callaway
Peter Manfield

ARM Corporate Finance Ltd                   020 7512 0191
Nick Harriss


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, finance and local and national government departments  and  blue-
chip companies.



CHIEF EXECUTIVE'S STATEMENT

Advanced Smartcard Technologies plc has had a very successful year, our maiden
period as a quoted company, following our flotation on the Alternative
Investment Market (AIM) in December 2005. The Company is delighted to report
continued profitable trading and a record annual 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 £849,000 before costs. This funding
has provided an excellent platform from which to accelerate our growth
strategies for the Group.

Financial results

Turnover for the year was £2,019,000 (2005: £1,952,000) and operating profit was
£294,000 (2005: £153,000). The increase in operating profit has been achieved
with only a modest increase in turnover due to a change in order mix. In 2005
relatively more product was sold containing an element of lower margin hardware
whilst in 2006 the order mix has been towards more favourable higher margin
software development activity. Moreover, the year has seen increased use of our
patented, core intellectual property, Multefile™, which has contributed to
improved profitability. The resulting higher gross profit has allowed a
significant improvement in operating profit, up 92% over the previous year.

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 flotation in
December 2005 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 Director of
Business Development and Sales Manager being recruited, additional sales agents
have been appointed in Turkey and Australia/New Zealand. More such appointments
are under way. The attributes of Multefile™ are increasingly being recognised
and in particular its suitability for a wide range of smartcard applications
both in the UK and worldwide. 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, anti-counterfeiting, government,
Identity, GSM, Biometrics, Health and Welfare. The capability for card issuers
to amend, add and delete new functionality, via a series of drop down menus,
coupled with 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 such as NFC mobile telephones.

We have also engaged additional specialist engineering staff in Scotland to
continue Multefile™ development as a direct result of the capital raising and
are confident of meeting our requirements in this area. We believe that this
strategic investment in having world-class products will produce long-term
benefits as the market develops and demand for our technology increases.

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 with several blue-chip clients and are pursuing
significant new opportunities, which lead us into exciting growth markets.

Our list of sales prospects remains strong with many good prospects that 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. The leading edge nature of the type of project that our
technology can make a real difference to inevitably has long lead times and so
makes the timing of revenue benefits more difficult to predict. Nonetheless, the
magnitude of these benefits when they do arrive can be very significant.

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 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 our unique technology.

Outlook

Looking forward, the prospects for the Group are very promising. 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.

David Braddock
Chief Executive



CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 30 September 2006

                                                  2006        2005
                                     Notes        £000        £000

Turnover                                 1       2,019       1,952
Cost of sales                                     (532)       (796)
Gross profit                                     1,487       1,156
Administrative expenses                         (1,193)     (1,003)
Operating profit                                   294         153
Net interest                             2         (21)        (42)
Profit on ordinary activities
before taxation                                    273         111
Tax credit on profit on
ordinary activities                      4           -           3
Profit transferred to reserves                     273         114
Earnings per share                       6
Basic                                            0.128p
Diluted                                          0.127p

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

The accompanying notes form part of these financial statements.

All operations are continuing.


BALANCE SHEETS
At 30 September 2006

                                                   Group             Company
                                              2006        2005        2006
                                     Notes    £000        £000        £000
Fixed assets
Intangible assets                        7     589         337           -
Tangible assets                          8     106          65           -
Investments                              9      40          40          68
                                               735         442          68
Current assets
Debtors                                 10     531         120       1,133
Cash at bank and in hand                       385         259         248
                                               ___         ___       _____
                                               916         379       1,381
Creditors: amounts falling due
within one year                         11    (747)     (1,066)        (31)
Net current assets/(liabilities)               169        (687)      1,350
Total assets less current liabilities          904        (245)      1,418
Creditors: amounts falling due after
more than one year                      12       -        (480)          -
Net assets/(liabilities)                       904        (725)      1,418

Capital and reserves
Called up share capital                 14      72          54          72
Share premium account                   15   1,334           4       1,334
Other reserves                          15       8           -           8
Profit and loss account                 15   (510)        (783)          4
Shareholders' funds                     16    904         (725)      1,418

The accompanying notes form part of these financial statements.

The financial statements were approved by the Board of directors and authorised
for issue on 5 January 2007.

Signed on behalf of the Board

D W Braddock
Director

S Naylor
Director


CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 September 2006

                                                                       2006        2005
                                                           Notes       £000        £000
Reconciliation of operating profitto operating cash (outflow)/inflow
Operating profit                                                        294         153
Depreciation and amortisation                                            86          53
(Increase)/decrease in stock                                              -           8
(Increase)/decrease in debtors                                         (411)        388
(Decrease)/increase in creditors                                       (460)        582
(Decrease)/increase in payments received on account                     (40)        130
Net cash (outflow)/inflow from operating activities                    (531)      1,314

Returns on investments and servicing of finance
Interest received                                                        11           1
Interest paid                                                           (31)        (40)
Net cash inflow/(outflow) from returns on investments and
servicing of finance                                                    (20)        (39)

Taxation                                                                  -           3

Capital expenditure and financial investment
Purchase of intangible fixed assets                                    (304)       (210)
Purchase of tangible fixed assets                                       (75)        (28)
Purchase of investments                                                   -         (40)
Net cash outflow from capital expenditure and financial investment     (379)       (278)
Financing
Increase in share capital                                             1,356           1
Repayment of borrowings                                                (300)       (468)
Net cash inflow/(outflow) from financing                              1,056        (467)
Increase in cash                                             17         126         533

The accompanying notes form part of these financial statements.


PRINCIPAL ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared under the historical cost convention
under United Kingdom Generally Accepted Accounting Practices and in accordance
with applicable United Kingdom accounting standards.

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 2005. 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 principal accounting policies of the Group are set out below. The policies
have remained unchanged from the previous year, as the adoption of FRS 21 -
Events after the Balance Sheet Date and FRS 25 - Financial Instruments have had
no impact on the Group.

Basis of consolidation

The Group financial statements consolidate those of the Company and of its
subsidiary undertakings drawn up to 30 September 2006.

Turnover

Turnover comprises the value of sales of software licences, support services,
software development and integration services, consulting and other services,
and hardware. Turnover excludes Value Added Tax, trade discounts and
transactions between Group companies.

Revenue from the sale of initial software licence fees is recognised at the
point an irrevocable commitment to use the software is received from the
customer. Revenue from ongoing annual software licence fees and provision of
support services is recognised over the period to which the contracted service
relates. Revenue from the provision of software development and integration
services, and consulting and other services is recognised when the services have
been performed. Hardware sales are recognised on delivery of the product.

Any excess of amounts invoiced over revenue recognised is recorded as payments
received on account. Any excess of revenue recognised over amounts invoiced is
recorded as accrued income.

Long-term contracts

The attributable profit on long-term contracts is recognised once their outcome
can be assessed with reasonable certainty. The profit recognised reflects the
proportion of work completed to date on the project.

Full provision is made for losses on all contracts in the year in which the loss
is first foreseen.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost net of depreciation.

Depreciation is calculated to write down the cost less estimated residual value
of all tangible fixed assets by equal annual instalments over their estimated
useful economic lives. The rates generally applicable are:

Fixtures and fittings      20%
Equipment               20-33%

Research and development

Research and development expenditure is charged to profits in the period in
which it is incurred. Development costs incurred on specific projects are
capitalised when recoverability can be assessed with reasonable certainty and
amortised in line with the expected useful lives of the projects. All other
development costs are written off in the year of expenditure.

Intangible fixed assets

Intellectual property related to research and development activity is
capitalised at cost when recoverability can be assessed with reasonable
certainty and is amortised on a straight-line basis over its useful economic
life.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its
estimated residual value, over the useful economic life of that asset as
follows:

Intellectual property 5-20%

Investments

Investments are included at cost less amounts written off.

Retirement benefits

Defined Contribution Pension Scheme
The pension costs charged against operating profits are the contributions
payable to the scheme in respect of the accounting period.

Leased assets

Payments made under leases regarded as operating leases are charged to the
profit and loss account on a straight-line basis over the lease term.

Deferred tax

Deferred tax is recognised on all timing differences where the transactions or
events that give the Group an obligation to pay more tax in the future, or a
right to pay less tax in the future, have occurred by the balance sheet date.
Deferred tax on defined benefit pension scheme surpluses or deficits is adjusted
against these surpluses.

Deferred tax assets are recognised when it is more likely than not that they
will be recovered. Deferred tax is measured using rates of tax that have been
enacted or substantively enacted by the balance date.


NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 September 2006

1. Turnover and profit on ordinary activities before taxation

The turnover and profit on ordinary activities before taxation are attributable
to the principal activity of the Group.

An analysis of turnover by geographical market is given below:

                                                     2006        2005
                                                     £000        £000

United Kingdom                                      2,017       1,947
Europe                                                  2           5
                                                   ______      ______
                                                    2,019       1,952

The profit on ordinary activities before taxation is stated after:

                                                     2006        2005
                                                     £000        £000
Research and development:
Current period expenditure                             34         201
Auditors' remuneration:
Audit fees                                             12           5
Fees in respect of tax services                         2           3
Reporting accountants in respect of admission to AIM   28           -
Other services                                          -           1
Depreciation and amortisation:
Intangible fixed assets                                52          22
Tangible fixed assets owned                            34          31
Other operating lease rentals                          27          21

2. Net interest
                                                     2006        2005
                                                     £000        £000

On loans                                               29          38
Other interest payable and similar charges              3           5
                                                       32          43
Other interest receivable and similar income          (11)         (1)
                                                     ____        ____
                                                       21          42

3. Directors and employees
Staff costs during the year were as follows:
                                                     2006        2005
                                                     £000        £000

Wages and salaries                                    837         661
Social security costs                                  87          72
Other pension costs                                    33          28
                                                     ____        ____
                                                      957         761

The average number of employees of the Group during the year was:

                                                     2006        2005
                                                   Number      Number

Technical                                              18          17
Sales                                                   2           1
Administration                                          2           2
                                                     ____        ____
                                                       22          20

Remuneration in respect of directors was as follows:

                                                     2006        2005
                                                     £000        £000

Emoluments                                            235         195
Fees                                                   12           -
Pension contributions to money purchase
pension schemes                                        10           9
                                                     ____        ____
                                                      257         204

During the year 3 directors (2005: 3) participated in money purchase pension
schemes.

In 2006, the emoluments of the highest paid director were £82,000 (2005:
£70,500). Pension contributions in respect of the highest paid director were
£3,198 (2005: £3,000).

4. Taxation

The tax charge/(credit) represents:
                                                     2006        2005
                                                     £000        £000

Adjustments in respect of prior year                    -         (3)

The tax charge/(credit) is explained as follows:
                                                     2006        2005
                                                     £000        £000

Profit on ordinary activities before tax              273         111
Profit on ordinary activities multiplied by standard
rate of corporation tax in the UK of 19% (2005: 19%)   52          21
Effect of:
Expenses not deductible for tax purposes                1           -
Deductions allowable                                  (15)          -
Capital allowances for the period in
excess of depreciation                                 (1)          3
Utilisation of tax losses                             (49)        (19)
Other timing differences                                2           -
R & D tax relief                                       (3)         (5)
Adjustments in respect of prior year                    -          (3)
Unused losses carried forward                          13           -
                                                     ____         ____
Current tax charge/(credit) for period                  -          (3)

No provision has been made for deferred taxation on trading losses carried
forward. The total amount unprovided for is approximately £84,000 (2005:
£71,000).

Unrelieved losses of approximately £442,000 (2005: £372,000) remain available to
offset against future trading profits.

5. Profit for the financial year

The parent company has taken advantage of section 230 of the Companies Act 1985
and has not included its own profit and loss account in these financial
statements. The parent company's profit for the year was £4,000.

6. Earnings per share

The calculation of the basic earnings per share is based on the earnings
attributable to ordinary shareholders divided by the weighted average number of
shares in issue in the period.

The calculation of diluted earnings per share is based on the basic earnings per
share adjusted to allow for the assumed conversion of all share options.

Earnings per share for 2005 was not a statutory disclosure as a private company.

Reconciliations of the earnings and weighted average numbers of shares used in
the calculations are set out below.

                                                 Weighted average    Per share
                                     Earnings    number of shares       amount
                                         £000          000               pence

Profit attributable to shareholders       273         212,498            0.128
Dilutive effect of options                  -           3,315            0.001
Diluted earnings per share                273         215,813            0.127






7. Intangible fixed assets

                                             Intellectual property
Group                                                         £000

Cost
At 1 October 2005                                              408
Additions                                                      304
At 30 September 2006                                           712
Amortisation
At 1 October 2005                                               71
Provided in the year                                            52
At 30 September 2006                                           123
Net book amount at 30 September 2006                           589
Net book amount at 30 September 2005                           337

8. Tangible fixed assets

                     Fixtures and fittings   Equipment       Total
Group                                 £000        £000        £000
Cost
At 1 October 2005                       14         224         238
Additions                               13          62          75
At 30 September 2006                    27         286         313
Depreciation
At 1 October 2005                       10         163         173
Provided in the year                     2          32          34
At 30 September 2006                    12         195         207
Net book amount at 30 September 2006    15          91         106
Net book amount at 30 September 2005     4          61          65

9. Fixed assets investments

                                                              2006
Group                                                         £000

Cost and net book amount at 1 October 2005                      40
Additions                                                        -
Cost and net book amount at 30 September 2006                   40

Company                                                       £000

Additions                                                       68
Cost and net book amount at 30 September 2006                   68

At 30 September 2006 the Group held 20% or more of the allotted share capital of
the following:
                                         Country of      Class of      Proportion held       Nature of
                                       incorporation    share capital by parent company       Business
                                                           held

Ecebs Limited                         England and Wales    Ordinary         100%     Software and services
                                                                                     related to smartcards
Ecebs Group Limited                   England and Wales    Ordinary         100%           Holding company
Multefile Limited                     England and Wales    Ordinary         100%                   Dormant
Accrington Technologies Limited       England and Wales    Ordinary          49%                  Software
                                                                                              and services
                                                                                      related to smartcard
                                                                                                 ticketing

The shares in Accrington Technologies Limited are held indirectly through Ecebs
Limited, a wholly owned subsidiary. The shares in Multefile Limited are held
indirectly through Ecebs Group Limited, a wholly owned subsidiary.

10. Debtors
                                            Group          Company
                                      2006        2005        2006
                                      £000        £000        £000

Trade debtors                          481         100           -
Prepayments and accrued income          50          20           -
Amounts owed by Group undertakings       -           -       1,133
                                      ____        ____      ______
                                       531         120       1,133


11. Creditors: amounts falling due within one year

                                            Group           Company
                                      2006         2005        2006
                                      £000         £000        £000

Loan                                   180           -           -
Trade creditors                        176          565          3
Payments received on account            90          130          -
Social security and other taxes        146          116          -
Other creditors                          7            3          -
Accruals and deferred income           148          252         28
                                      ____      ______        ____
                                       747       1,066          31

The loan is secured by floating charges over the assets of Ecebs Limited and
Ecebs Group Limited.

12. Creditors: amounts falling due after more than one year

                                            Group          Company
                                      2006        2005        2006
                                      £000        £000        £000

Loan                                     -         480           -

13. Borrowings

Borrowings are repayable as follows:
                                            Group          Company
                                      2006        2005        2006
                                      £000        £000        £000

Within one year                         180          -           -
After one and within two years            -        480           -
                                       ____       ____         ___
                                        180        480           -

The loan is subject to interest at an annual rate of 3% above base rate at a
minimum of 7% and is repayable in full by 1 January 2007.

14. Share capital
                                                              2006
Group and Company                                                £
Authorised
300,000,000 ordinary shares of 0.03p each                   90,000
Allotted, called up and fully paid
239,800,052 ordinary shares of 0.03p each                   71,940

At 30 September 2005 the Group had authorised share capital of £65,000
comprising 1,300,000 ordinary shares of 5p each, and allotted, called up and
fully paid share capital of £53,833 comprising 1,076,660 ordinary shares of 5p
each.

Allotments

The Company was incorporated on 21 November 2005 and issued 2 0.03p ordinary
shares at par value.

On 22 November 2005, 166,666,665 0.03p ordinary shares with a nominal value of
£50,000 were issued at par in a share-for-share exchange to acquire the whole of
the issued share capital of Ecebs Group Limited.

On 14 December 2005, 25,000,000 0.03p ordinary shares with an aggregate nominal
value of £7,500 were issued at 3p for an aggregate consideration of £750,000 as
a capital raising exercise.

On 15 March 2006, 28,299,666 0.03p ordinary shares with an aggregate nominal
value of £8,490 were issued at 3p for an aggregate consideration of £848,990 as
a further capital raising exercise.

During the year, 11,403,508 0.03p ordinary shares with an aggregate nominal
value of £3,421 were issued at par as consideration for services received from
external parties as part of capital raising exercises.

During the year, 8,430,211 0.03p ordinary shares with an aggregate nominal value
of £2,529 were issued for an aggregate consideration of £33,318 upon the
exercise of options under the Company's share option scheme.

Contingent rights to the allotment of shares
The Company has granted options to certain employees in respect of 24,599,876
ordinary 0.03p shares at option prices of either 0.65p, 3.5p or 3.7p,
exercisable between 29 November 2004 and 3 July 2016. At the year end the number
of options remaining unexercised was 16,169,665.

15. Share premium account and reserves

                                       Share premium                   Profit and loss
                                             account   Other reserves          account
Group                                           £000             £000             £000

At 1 October 2005                                  -                -             (783)
Profit for the year                                -                -              273
Premium arising on issue of share
capital net of costs                           1,334                8                -
                                              ______           ______           ______
At 30 September 2006                           1,334                8             (510)

                                       Share premium                   Profit and loss
                                             account   Other reserves          account
Company                                         £000             £000             £000

At 1 October 2005                                  -                -                -
Profit for the year                                -                -                4
Premium arising on issue of share
capital net of costs                           1,334                8                -
                                              ______            _____            _____
At 30 September 2006                           1,334                8                4

16. Reconciliation of movements in shareholders' funds

                                                  2006        2005
                                                  £000        £000

Shareholders' funds at 1 October 2005             (725)       (840)
Net value of share issues                        1,356           1
Profit for the financial year                      273         114
                                                  ____        ____
At 30 September 2006                               904        (725)

17. Reconciliation of net cash flow to movement in net funds/debt

                                                  2006        2005
                                                  £000        £000

Increase in cash in the year                       126         533
Cash outflow from decrease in debt                 300         468
Movement in net debt in year                       426       1,001
Net debt at 1 October                             (221)    (1,222)
Net funds/(debt) at 30 September                   205       (221)

18. Analysis of changes in net funds/debt

                            At 1 October                            Other     At 30 September
                                    2005    Cash flow non-cash    changes                2006
                                    £000           £000              £000                £000

Cash in hand                         259            126                 -                 385
Debt due within one year               -           (180)                -                (180)
Debt due after one year             (480)           480                 -                   -
                                    ____           ____              ____                ____
                                    (221)           426                 -                 205

19. Capital commitments

The Group had capital commitments at 30 September 2006 of £13,000 (2005: Nil).

20. Contingent liabilities

In previous years the Group has received a government grant totalling £60,000.
This may become repayable if the fixed assets purchased as a condition of the
grant offer do not remain in use until 8 July 2007.

21. Retirement benefits

The Group operates a defined contribution pension scheme for the benefit of
employees and directors. The assets of the scheme are administered by trustees
in a fund independent from those of the Group.

22. Leasing commitments

Operating lease payments amounting to £20,000 (2005: £15,000) are due within one
year. The leases to which these amounts relate expire as follows:

                                                  2006               2005
                                      Land & buildings   Land & buildings
                                                  £000               £000

In one year or less                                 20                 15

23. Financial Instruments

The Group uses financial instruments, other than derivatives, comprising
borrowings, cash on deposit and in current accounts and other items such as
trade debtors, trade creditors, etc. that arise directly from its operations.
The main purpose of these financial instruments is to provide finance for the
Group's operations.

The main risk arising from the Group's financial instruments is interest rate
risk. The Board reviews and agrees policies for managing each of these risks and
they are summarised below.

It is and has been throughout the period under review, the Group policy that no
trading in financial instruments shall be undertaken.

Interest rate risk

The Group has financed its operations to date from cash raised from issues of
shares, and loan finance. Cash surplus to immediate requirements is placed on
interest bearing deposit with the Group's bankers.

Liquidity Risk

The Group seeks to manage financial risk by ensuring sufficient liquidity is
available to meet foreseeable needs and to invest cash assets safely and
profitably.

Currency Risk

As at 30 September 2006 the Group had no material currency exposures relating to
trading activities. The Group's financial instruments are denominated
predominantly in sterling.

The Company's financial instruments comprise the following:

                                   2006                       2005
Financial liabilities    Book value    Fair value   Book value    Fair value
                               £000          £000         £000          £000

Loan                            180           180          480           480

Short term debtors and creditors are excluded from the above disclosure.

24. Related party transactions

D Braddock, a director of Advanced Smartcard Technologies plc, is a director of
ITSO Limited, which is a member controlled non-profit distributing organisation
set up to create an industry standard for the interoperable use of smartcards in
transport and other applications.

ITSO Limited is a significant customer and a significant supplier of Ecebs
Limited. The transactions during the year and the balance outstanding at the
year end were:
                                                              £000
Sales by ITSO Limited to Ecebs Limited for the year            182
Sales by Ecebs Limited to ITSO Limited for the year             71
Amount due by Ecebs Limited to ITSO Limited at the year end      5

T Doyle, a director of Advanced Smartcard Technologies plc, is also a director
and majority shareholder of InvestNorthWest Limited. InvestNorthWest Limited
acted as adviser to the Group in relation to its flotation on AIM in December
2005 and subsequent further capital raising exercise in March 2006.

As consideration for these services, InvestNorthWest Limited received fees of
£40,000 and 3,801,170 new Ordinary shares in Advanced Smartcard Technologies plc
at a nominal value of 0.03 pence each. The market value of these shares at the
date of issue was 3 pence each.

The Company has taken advantage of the exemption available in FRS 8 and has not
disclosed transactions with other Group companies.




The Annual Report and Accounts of the Company will be sent to shareholders
around the 15th January 2007.