Atlas South Sea Pearl reports good news

Perth-based pearl producer Atlas South Sea Pearl Ltd, which operates in Indonesia, has reported a strong improvement in sales and earnings in 2006.

It has also reported an improvement in the quality of its first harvest for 2007.

The company's announcement is pasted below:

2006 PROFIT RESULTS AND JANUARY 2007 HARVEST

The Company wishes to advise that it is expecting the group's 2006 operating revenue to be in
excess of $12.5 million which will be an increase of nearly 30 % on the previous year's income
results. The net profit before tax is likely to be in the order of $4.3 million which would
represent an increase of more than 80 % on the before tax profit in 2005. The tax calculation
has not yet been finalised and all results are subject to final audit and Board sign-off.

The company expects to finalise the audit and sign off of its accounts by the beginning of
March 2007.

In addition the Board is pleased to advise that the Company's Indonesian pearling projects have
just completed the first major harvest for 2007 and there is a pleasing improvement in the size
and weight of pearls harvested.

The company is putting more resources into the retail and tourism activities in Bali and has
employed a an experience jewellery retail operations manager.