NetComm Ltd (ASX: NTC) reported today it achieved a net profit of $279,000 for the half year ended 31 December 2007, a $1,629,000 improvement on the same period in 2006.

The increase in gross margin resulted from the Companys initiative to drive a change in product mix by investing heavily in higher value, higher margin technologies and services targeted at the small to medium business sector.

NetComm Ltd (ASX: NTC) reported today it achieved a net profit of $279,000 for the half year ended 31 December 2007, a $1,629,000 improvement on the same period in 2006.

The increase in gross margin resulted from the Companys initiative to drive a change in product mix by investing heavily in higher value, higher margin technologies and services targeted at the small to medium business sector.

";This result is continuing proof of the turnaround reported in the previous six months,"; said David Stewart, NetComms Managing Director. ";We have achieved this strong result through a deliberate strategy of tight cost discipline and increasing gross margin levels.";

"The Company expects further increases in revenues as it introduces an innovative range of 3G Broadband Wireless products in the second half. Stewart said "We will be making more announcements shortly."

"Our strategy is to grow new recurring revenue streams from services and focus our product development energies on technologies where NetComms ability to deliver solutions ahead of other suppliers is valued" said Chairman Terry Winters. "The rapidly growing demand for alternatives to ADSL networks in areas that are not well serviced by fixed broadband networks will provide a strong market for our innovative products."

The Company commented that its value added strategic move in December 2007 to acquire the exclusive Australian rights to Mako Networks was on track and the first customers already in place. This new service to be marketed as NetAssureTM - is an integral part of NetComm's transition to generating significant recurring revenue streams from IT services.

"This new service allows businesses to simply and safely enjoy the benefits of high speed internet access while maintaining full control over its use. It is a total network management and security system" said Stewart. "The solution is ideal for small to medium sized businesses without dedicated network staff."

"Mako Networks solution has been a success in the New Zealand market in the small to medium business sector as well as with larger enterprises who have multiple sites" said Stewart. "We expect to announce some strong partnership deals in the second half."

The NetComm Board is confident that the positive trend in margin and profit that has been reported in the past two half-year periods will continue and result in further improvements in 2007/2008.