Chairman’s Address Annual General Meeting Wednesday, 21 November 2007 Westin Hotel

In my address to you in November 2005 I talked about market leadership, innovation and consolidation. Since that date little has changed – we have moved to consolidate the Group as market leaders and further developed our technology to underpin plans we have for the future. Our joint venture with Singapore based ComfortDelGro Corporation in purchasing , and Hunter Valley Buses in October 2005 – through our joint venture Company, ComfortDelGro Cabcharge Pty Ltd (CDC) – is proving to be one of the real success stories in Public Transport and leading the way with the NSW Government to improve services to the community of Western Sydney and the rapidly growing Hunter Valley Region.

If you take the achievements made through our relationship here in Australia followed by our increased interest in the UK business in CityFleet and Computer Cab in London in 2006, it is quite awesome when you realise the position we have established in what is a relatively small period of time.

I will obviously talk in some more detail on various sections of our business as I proceed on this journey today.

I have an obligation to talk about the financial year 2007 and the contents of our Annual Report so let me just touch on the key points of our year’s work and then get on with the really important issues relating to the future, rather than just revisiting historical facts that are already well known to those who are really interested.

Year 2007 was a great year for the Company:

 Net Profit After Tax increased 36% to $51.8m;  Total Revenue increased 16% to $151m;  Earnings per Share (diluted) increased 32% to 44.9 cents per share;

For personal use only use personal For  Total Turnover increased 16% to $1.025 billion; and  Earnings Before Interest and Tax (EBIT) were up 36% to $72m.

Analysis of performances shows a staggering Compound Aggregate Growth Ratio (CAGR) of –

Page 1 Last Last 2 Years 4 Years NPAT 36.6% 26.1% EPS 34.6% 25.4%

The Board of your Company are a genuine group of people who dedicate many hours on many occasions to chart the Company’s strategic development and progress. They, together with the Management and Staff and support of the Industry – both nationally and internationally – have forged a well-earned position in the ASX 200 list of Companies.

The increase in earnings per share was 32.4%. The significance of the increase in the earnings per share is important. It shows that after several years of acquisition and growth, we have not slowed down and it underpins our confidence in the years ahead. More importantly for our shareholders, it allowed us to pay you yet another fully franked record dividend – this time 30 cents per share – which is a clear demonstration that we are able to grow and reward our shareholders at the same time.

Overall, we have substantially outperformed the All Ordinaries Index for five consecutive years. Since our listing in 1999 we have seen a 900% growth in our share price and the dividends have exceeded the initial offer price.

You will note that in past disclosures we have referred to litigation commenced against Cabcharge by another Meter Manufacturer. I am pleased to advise that the litigation was recently finalised with the claim against Cabcharge being dismissed.

Cabcharge is about transparency. For some time Cabcharge has been in dialogue with Bank and Third Party Card issuers in relation to the long awaited Payment Card Industry Data Security Standards for the security of charge, credit and debit cards and we have done all we can at present with our GPRS EMV compliant equipment, along with the introduction of the Cabcharge eTicket to ensure that more and more transactions are authorised at point of sale.

The importance of these standards is twofold. Firstly, more transactions will be processed electronically which of course has a flow on effect to Cabcharge, but just as importantly, the point of sale approval offers consumers further protection and creates further transparency within the Taxi Industry.

The Growth of credit cards, both corporate and personal has continued as people strive to utilise the ‘online authorisation’ which provides accurate trip details for reasons of accountability. In addition the security issues for the Taxi Industry with the long term desire to minimise cash carried by drivers is very important. Our further development of technology

For personal use only use personal For and acquisitions has provided us with the systems to offer security and compliance requirements and faster and better settlement procedures.

We have also been recently holding discussions with Banks and Third Party Card Issuers in our continuous effort to drive down operating costs. We are pleased to advise that as a result of these discussions, we hope to be in a position to make an announcement about a

Page 2 substantial reduction in operating costs which will see a solid increase in Cabcharge’s future Net Profit.

In 2004 we introduced the Europa Taxi Meter to the market. Originally Europa was a subsidiary of the well known French based Ingenico Group, but earlier this year we purchased the Europa business and as a result, many synergies have already been realised.

As a result, we now have our own in-house maintenance group to service some 19,000 EFTPOS units and also to work with agencies Australia wide for their installation, de- installation and re-installation as vehicles are regularly changed or added to fleets. This network of agencies when desirous of doing so, also look after our meters as well as those of other suppliers.

We believe the popularity of the Europa Meter will continue to grow as a result of consumer demand for transparency. As there are more and more toll roads being built around Australia, the demand for point of sale explanation of toll charges also continues to grow, and consumers have also embraced the Meter’s capacity, via the Cabcharge EFTPOS equipment, to show details of pick-up and drop-off destinations as proof of any journey.

Innovation will always be the aim of the Group as demands from all sectors of Public Transport are screaming for integration, accountability and the urgent need to maximise speed of getting passengers on and off transport in order to make the most of operating efficiency. This is evident as a result of the Queensland Government Transport Subsidy Scheme Contract which Cabcharge secured in March this year, and which is expected to be fully operational by the end 2007.

ComfortDelGro and CDC: ComfortDelGro is the world’s second largest land transport company with a total fleet of 41,000 buses, taxis and rental vehicles. The Group is based in Singapore and is proving a wonderful partner.

We have similar mindsets in driving increases in revenue from overseas operations. We share the same principles in corporate integrity and work together in a spirit of friendship and mutual trust.

What a fantastic story the CDC operation in Australia is – it was only in October 2005 that we acquired a Company (the Westbus Group) that was under administration and suffering from lack of funds and low staff morale.

Today (just two years on) the bus fleet has grown from 642 to 812 as at 1 October 2007. This growth of 170 vehicles has partly resulted from the acquisition of 29 vehicles when

For personal use only use personal For acquiring the operations of Baxter’s Buses and 86 vehicles from the acquisition of Toronto Buses. The State Government approved the addition of 21 vehicles to operate the North- West Transitway which opened in March 2007, 29 vehicles to cater for increased patronage growth on the Hills to City services via the M2 and 5 additional vehicles for use in the Hills area.

AGM 2007-Chairman's Address Final Page 3. The company has also been replacing its older vehicles with modern buses. To date the company has taken delivery 113 replacement vehicles in the period 1 October 2005 to 1 October 2007. These buses have been recognised by the industry through the award of the ‘Best Bus’ trophy by the Australian Bus and Coach publication and the NSW Bus and Coach Association. This replacement program, together with the fleet growth, has reduced the average age of the fleet from 14.06 years in October 2005 to 11.51 years at the beginning of October 2007.

A further 107 vehicles are being delivered between October 2007 and June 2008. This will further reduce the average fleet age.

The Company has also undertaken refurbishment of a 46 buses in the fleet. These buses, which will continue in service beyond the first 7-year term of the contract, are given a major overhaul and typically receive new internal linings and flooring, re-upholstery of seating, some air-conditioning, electronic destination signs and new paintwork. The average expenditure on each refurbishment is $30,000 and is funded under the contracts with the State Government. A further 288 vehicles will undergo refurbishment over the balance of the contract terms until 2012.

Because CDC reports on a calendar year basis (in conformance with the reporting requirements of ComfortDelGro), it is difficult for shareholders of Cabcharge Australia Limited to see like for like performances. To give you a snapshot of CDC’s performance (as announced last week) the results for the third quarter ending 30 September 2007 were as follows:

“ComfortDelGro Cabcharge Pty Ltd’s operations for the first nine months ended 30 September 2007 reported a revenue growth of 25% or $21.8m to $107.4m from $85.7m in the corresponding nine month period ended 30 September 2006. Profit before tax grew by 33% or $3.3m to $13.3m from $10m in the corresponding period.

The improvement in the CDC results were attributed to higher mileages operated for the additional M2 services and the North-West Transitway services, the new Hunter Valley contract which was signed on 1 October 2006, growth in bus charter services mainly from Rail Replacement and Night Ride contracts secured this year and the contributions from the Baxter’s acquisition on 1 August 2006.”

And there is no reason why this trend should not continue.

In our other joint venture with ComfortDelGro, through CityFleet we have increased our stake from 15% to 33% in late 2006. Since our association, we have worked together to totally restructure our UK operations and now with a spread covering London, Birmingham,

For personal use only use personal For Edinburgh and Aberdeen, we are strategically placed to move forward.

We are now in a position to equity account the UK operations and together with ComfortDelGro and the assistance of Europa, we have been developing a wholly owned state of the art communications system which is specifically designed for our mutual interests. Installation of that system will commence in the UK in January 2008 and a pilot for

Page 4 Australia will commence in Newcastle also in January 2008. We are using Newcastle as a test model for an integrated Taxi and Bus system which we believe will not only work very well, but contribute significant savings to both the Taxi Services operations and the CDC operations.

Cabcharge’s core taxi business also continues to expand. With the growth in fleet size and acquisition of Newcastle and Arrow Taxis, we are keen to continue growth through viable acquisitions. We of course as announced, rarely pass an opportunity to acquire more licences in a business we know and believe in. It is a business that has a record of great resilience and ability to achieve when others may be faltering because of changes in world economic circumstances.

In addition to increasing our taxi fleet in late October 2007 we launched our new fleet of VIP Hire Cars, known as 13LIMO. The introduction of 13LIMO is another step for Cabcharge in its quest to become the premium provider of an integrated transport system (ITS) which will deliver seamless solutions to both the corporate and individual markets. Our ITS system when fully developed will deliver a full range of passenger transport services.

Earlier this year we spent a considerable amount of time on a restructure of senior management within the Group. The restructure has already proved to be sound and I assure you that Cabcharge is in good hands for the future.

For some time there have been whispers surrounding my retirement. I hope I am not disappointing you when I tell you that I have no such plans. Those of you who know me will recognise that I will step aside very quickly when I am not contributing to the Company’s future strategies. Nobody grows old by merely living a number of years.

As General MacArthur once said “In the central place of every heart there is a recording chamber, so long as it receives messages of beauty, hope, cheer and courage – so long are you young. When the wires are all down and your heart is covered with the snows of pessimism and the ice of cynicism – then, and then only, are you grown old.”

I don’t think that the plan formulated will be a surprise to anyone. I started as the CEO of Cabcharge in 1976 when it was primarily a charge account payment system. Today Cabcharge operates in many markets including the Financial Services market, Taxi Services, Information Technology, and now Buses, filled with opportunities to provide totally integrated transport solutions.

Owen Eckford, who is currently the CEO of ComfortDelGro Cabcharge Pty Ltd, has been appointed Deputy CEO of the Cabcharge Group of Companies. Owen’s academic

qualifications are – For personal use only use personal For  Bachelor of Laws (LLB);  Master of Engineering Science (Civil Engineering, Transport);  Bachelor of Engineering (Naval Architecture).

And his career achievements are –

AGM 2007-Chairman's Address Final Page 5.  1976 – 1986: Maritime Services Board of NSW where he held several positions;  1986 – 1991: State Transit Authority – General Manager, Ferry Services;  1992 – 1997: Insearch Limited – Managing Director;  1998 – 2002: Holman Webb, Lawyers – Chief Executive;  2002 – Present: He commenced with Bosnjak Holdings Pty Ltd as Operations Director and quickly thereafter was appointed Managing Director; and as you are well aware, that company was purchased by CDC in late 2005.

Fred Lukabyo is well known to you and he will retain his current role but be promoted as Chief Operating Officer of all the Group’s Services. He holds a Bachelor of Business Degree, a Master of Business Administration Degree and is a Member of CPA Australia.

Fred has been involved in the Taxi Industry for over 15 years and between 1995 and 2000, he held the position of Communications Manager at CCN and was instrumental in the development and implementation of the Company’s Computer Aided Dispatch System.

In 2000 Fred left the organisation to obtain further experience in the communications technology field and rejoined CCN in 2002 as Chief Operating Officer of CCN’s services.

Just to highlight a snapshot of 2008, the Board believes that (other than for reasons well beyond anyone’s control) we will achieve the following:

1. The first quarter for Cabcharge has shown an increase of 12% over the same period for last year with continuing substantial increases in Cabcharge’s core business expected over the full year. The growth of usage and fleet expansion resulting from State and Territory actions in issuing additional licences will in general, provide for better services and hence better revenue. Governments are generally well aware that balancing release of new licences is very much tied to our ability to obtain drivers, which is difficult in times of low unemployment.

2. Cabcharge’s mergers and acquisitions will continue to occur as appropriate opportunities arise. We are currently looking at two major acquisitions within the Industry but it is too early to speculate on the outcome of these negotiations.

3. The new communications system ‘Catapult’ will be trialled in Newcastle and then expanded to CCN and made available to others who may be interested in the technology that was jointly developed with our Singapore and UK colleagues.

4. We will continue to purchase licences or assist others to do so to grow and

consolidate that section of our business. For personal use only use personal For 5. The eTicket functions will be expanded and released to those whose demands it meets. In the meantime, our drive towards electronic payments authorised at source (journey’s end) will continue as Regulatory and the public expectations are met in the interest of security and transparency for consumers.

Page 6 6. We will continue to benefit from our restructure which is focused on increasing revenue and managing cost reductions for the Company. 7. With our joint venture Partner CDC here in Australia, we believe there is no limit to opportunities for us to grow our business. Expansion of services seems an almost everyday challenge particularly in the fast growing Western Region of Sydney and the amazing growth being experienced in the Hunter Valley and Newcastle Region. Governments of all States and Territories need assistance to resolve the problems associated with expansion requirements of Public Transport. We will play our part in that area providing the operations are profitable for our Company.

8. Again with our joint venture partner in the UK we will bring online the ‘New Horizon’ system (the parent of ‘Catapult’) and this allows us to really meet substantial demands in our Taxi and Private Hire fleets in London, Birmingham, Edinburgh and Aberdeen, plus other centres we are currently reviewing. 9. The new EFTPOS pilot system in the UK will be effectively operating in 1H2008 (3Q in Australia) and is expected to dramatically increase the combined benefits of a new communications and payment system.

All in all, the Company is in great shape to continue to deliver sound results and benefits to shareholders. We would like to think that we do it so well that we can maintain our increased dividends whilst increasing our profit distribution margin in accordance with good business practice.

To finish on a somewhat lighter but maybe timely note – in view of the sub prime crisis in America and its ripple or tsunami effects – I thought I would share with you the Enron Business Model explained in laymen’s terms. This was provided to me by a good friend, Bob Critchley of DBM International.

 FEUDALISM – You have two cows. Your lord takes some of the milk.  FASCISM – You have two cows. The government takes both, hires you to take care of them, and sells you the milk.  COMMUNISM – You have two cows. Your neighbours help take care of them and you share the milk.  TOTALITARIANISM – you have two cows. The government takes them both and denies they ever existed and drafts you into the army. Milk is banned.  CAPITALISM – You have two cows. You sell one and buy a bull. You’re herd multiplies and the economy grows. You sell them and retire on the income.  ENRON VENTURE CAPITALISM – You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows. The milk rights of the

For personal use only use personal For six cows are transferred via an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company. The annual report says the company owns eight cows, with an option on one more.

AGM 2007-Chairman's Address Final Page 7. As is usual, our outstanding results for the year indicate the dedication and commitment of the Board, Management team and all Staff of Cabcharge and CDC. Their effort and support is invaluable and I take this opportunity to thank them.

I also thank you people who have shown great emotional energy in listening to what I’ve had

to say. Please give it some thought – that is all I can ask. For personal use only use personal For

Page 8