EAG LIMITED 
EVANS ANALYTICAL GROUP  
Annual Report and 
Accounts 2007
Advancing Technology  
through Leadership in Testing
Designed and Produced by: www.wisetiger.co.uk, Printed by Sussex Litho
 
Contact information
Headquarters:
26 Upper Pembroke Street
Dublin 2
Ireland
T: +353 1 637 3922
Administrative Offices:
810 Kifer Road
Sunnyvale, CA 94086
United States
T: +1 408 530 3500
www.eaglabs.com Contents
  1 Financial Highlights
  2 Chairman’s Statement
  3 Chief Executive Officer’s Review
  4 Financial Review
  5 Board of Directors
  7 Directors’ Report
  9 Corporate Governance Report
10 Remuneration Report
12  Statement of Directors’ Responsibilities 
13 Independent Auditors’ Report
14 Consolidated Income Statement
15 Consolidated Statement of Recognised Income and Expenses
16 Consolidated Balance Sheet
17 Consolidated Cash Flow Statement
18 Notes to the Consolidated Financial Statements
57 EAG Limited Income Statement
57 EAG Limited Statement of Changes in Equity
58 EAG Limited Balance Sheet
59 EAG Limited Cash Flow Statement
60 Notes to the EAG Limited Financial Statements
62 Directors, Company Secretary and Advisers
63 Notice of Annual General Meeting EAG Limited Annual Report and Accounts 2007        1
FINANCIAL HIGHLIGHTS
EAG Limited (AIM: EAG) is a leading fully integrated and independent  
provider of microanalytical surface analysis and microelectronic failure  
analysis services.
*Certain items have been separately disclosed as special in order to present what the board considers to be a more balanced perspective of the underlying trading 
performance. These include management fees to related parties prior to the IPO, aborted acquisition expenses and legal costs, amortisation of acquired intangible assets, 
finance costs associated with the reorganisation and restructuring prior to the IPO, tax impact of special items and deferred taxation on restructuring at the IPO.
Revenue up 145% to $69.2 million  
(2006: $28.3 million) reflecting full year 
impact of acquisitions and organic growth.
Operating profit before special items*  
up 170% to $16.1 million (2006: $6.0 million).
Operating profit up 1 19% to $10.2 million  
(2006: $4.7 million).
Profit before tax and special items* 
increased to $8.0 million (2006: $1.9 million) 
reflecting increased operating profit and 
changed financing structure.
Earnings per share before special items* 
down 15% to 6.7 cents (2006: 7 .9 cents).
Cash generated from operations up  
144% to $16.7 million (2006: $6.8 million).
Consequent on financing structure  
prior to the IPO, loss before tax of  
$100.8 million (2006: $35.4 million loss)  
and loss per share of 222.1 cents (2006: 
147 .2 cents loss) reflecting principally  
non-cash charges of debt instruments.
Maiden interim dividend paid of 3 cents  
per share. No final dividend proposed.
On 26 June 2007 , EAG completed its  
IPO on the AIM market of the London 
Stock Exchange, raising gross proceeds  
of £125 million.
Since flotation, EAG obtained $140 million  
of new financing facilities, which have 
been renegotiated to a revised level of  
$75 million that reflects termination of  
the acquisition strategy. Net debt was  
$47 .1 million at the year end. 2        EAG Limited Annual Report and Accounts 2007
On 26 June 2007, EAG Limited (“EAG”) completed its initial public 
offering (“IPO”) on the AIM market of the London Stock Exchange 
(“AIM”), raising gross proceeds of £125 million. Subsequently, EAG 
arranged $140 million of new financing facilities, which have been 
renegotiated to a revised level of $75 million following termination 
of the acquisition strategy. These proceeds and financing facilities 
provided EAG with the resources to continue its expansion by 
acquisition into microelectronic failure analysis services, thereby 
broadening the range of testing services on offer to customers.
The businesses in microanalytical surface analysis and materials 
characterisation services, which constitute 63% of EAG’s revenues, 
continued to build on their market leading positions. This was 
driven by continued investment in instruments and skilled scientists 
to further broaden and expand the testing services.
Shortly before the IPO, EAG acquired the business of Accurel 
Systems International, which has now been combined with that 
of AMER Inc, which was acquired in late 2006. Since flotation, EAG 
continued its expansion strategy with the acquisitions of Micro 
Electronic Failure Analysis Services Inc, DSL Labs Inc and White 
Mountain Labs LLC. Together, these acquisitions position EAG 
as a leading supplier of microelectronic failure analysis services. 
This reflects the strategy of building leading positions in both 
microanalytical surface analysis and microelectronic failure analysis.
On 19 December 2007 , EAG announced an increase in overall 
expenses since the IPO, together with a realignment of management 
responsibilities and the initiation of a full strategic review to consider 
all options, including the possibility of an outright sale. I was 
appointed Non Executive Chairman; David Lahar, previously Executive 
Chairman, became Chief Executive; Jim Cowart relinquished his 
position as Vice Chairman but remained a Non-Executive Director 
and Thomas Pfeil resigned as Chief Executive. Furthermore, an 
independent committee of the Board was formed of non-executive 
directors to consider the strategic options, including the possibility of 
an outright sale, which is ongoing.
On 13 February 2008, EAG announced that it had received 
notification of the formation of a concert party by a group of EAG 
shareholders comprising David Lahar, Jim Cowart, Thomas Pfeil and 
American Capital Strategies Limited. Subsequently, on 26 March 2008, 
EAG announced that it had received notification that the concert 
party had been disbanded, and that David Lahar and Jim Cowart 
were no longer considering a possible offer for the company.
The strategic review is ongoing, and a number of expressions 
of interest have been received that are being pursued through an 
orderly process to explore the possibility of a sale. These results and 
the management budgeting process are important tools which the 
board will use to appraise any offers or proposed offers that might be 
made. The board will keep shareholders informed of developments.
The company would like to remind shareholders that EAG is 
not subject to the City Code on Takeovers & Mergers. However, 
the articles of association contain certain provisions relating to 
takeovers, copies of which are available on the company’s  
website at www.eaglabs.com.
A maiden interim dividend of 3 cents per share was paid in 
October 2007. At the time of the IPO, it was stated that the intention 
was to pay a dividend of 8 cents per share in the first 12 months as a 
public company. However, the board has decided to postpone any 
decision on future dividends, pending clarity of the future strategy.
 I would like to take this opportunity to thank the staff and 
senior management for their continued efforts and loyalty 
throughout a challenging period.
Outlook
Trading in the new year has been broadly in line with market 
expectations, notwithstanding the challenging conditions 
experienced in EAG’s main markets. Looking ahead, there are a 
number of new areas of optimism, including Asia and photovoltaic 
technologies. Nevertheless, the outlook is necessarily cautious in 
light of uncertainties in the general economic environment, and 
particularly in the semiconductor equipment and manufacturing 
areas, as well as the ongoing strategic review. The company 
remains confident in the attractiveness of the markets and their 
growth prospects over the longer term.
Ian Johnson 
Non-Executive Chairman 
30 March 2008
“2007 was certainly an eventful year. The IPO and new financing facilities laid the foundation for a period of 
rapid growth by acquisition to expand into the complementary market of failure analysis while continuing 
to build EAG’s leading position in surface analysis. The consequences of the rapid enlargement and multiple 
integration issues required changes to be made to the board and senior management at the end of the year 
together with strengthening of the finance function. A full strategic review of the business was initiated, 
including the possibility of an outright sale. This review is well underway and expressions of interest have 
been received from a number of parties to acquire the company. With publication of these results, the board 
is able to pursue a fuller dialogue and accelerate the process.”
CHAIRMAN’S  
STATEMENT EAG Limited Annual Report and Accounts 2007        3
Four acquisitions were completed in the year which, together 
with earlier acquisitions, has positioned the group as a leading 
supplier of microelectronic failure analysis and “release to 
production” services. This opens an exciting new market that 
is complementary to the microanalytical surface analysis and 
materials characterisation services. 
In 2007, EAG’s clear market leadership in Secondary Ion Mass 
Spectrometry (“SIMS”) and Glow Discharge Mass Spectrometry 
(“GDMS”) techniques, coupled with a strong presence in Asia, 
resulted in solid growth in a number of segments – electronic 
specialty metals and alloys, integrated circuit foundries, aerospace/
defence, lasers/optics and solar/energy.
EAG’s semiconductor capital equipment and integrated device 
manufacturing segments proved more challenging, as growth 
in the first half was followed by contraction in the second half. 
In the late summer, major foundries and large semiconductor 
manufacturers began to indicate that capital expenditure budgets 
could be reduced. Among integrated device manufacturers, 
general economic uncertainty, particularly with respect to 
EAG’s European clients in this segment, resulted in a reduction 
in demand for testing in second half. However, EAG’s revenue 
from the integrated circuit foundries and fabless semiconductor 
companies has grown.
Geographically, 74% of total sales were derived in the United 
States, 17% in Asia and 9% in Europe. Revenues from EAG’s 
operations in Asia increased significantly in 2007, particularly due 
to growth in demand from integrated circuit foundries in Taiwan, 
China and Singapore, emerging demand for purity testing of 
photovoltaic grade silicon feedstock in China, and the rapidly 
expanding fabless semiconductor segment in China.
The surface analysis testing business operates primarily from US 
laboratories in California, Minnesota, Massachusetts, Texas, New 
Jersey, North Carolina, and Arizona, the international laboratories 
in France, Germany, United Kingdom, Shanghai and Taiwan, as well 
as the sales office in Tokyo. The microelectronic failure analysis and 
“release to production” services business operates primarily from 
laboratories in northern and southern California and Arizona.
Microelectronic failure analysis and “release to production” 
testing services are provided primarily to fabless semiconductor 
companies and small to medium-sized integrated device 
manufacturers, and include automated test, failure analysis,  
circuit debug and edit, reliability and qualification testing (burn-in, 
stress, electro-static discharge and latch-up testing). These testing 
services are critical in bringing an integrated circuit design from 
conceptualisation to volume production.
In the year ahead, the plan is to integrate the acquisitions made 
during 2007. As a consequence, four facilities are expected to 
be consolidated by combining Accurel Systems International, 
AMER and DSL Labs into a single facility that is designed to 
accommodate all aspects of the microanalytical failure analysis 
services. This consolidation is expected to require one-time 
charges and capital expenditure of approximately $2m.
Fabless semiconductor companies typically focus on two 
areas – circuit conceptualisation and design, and application-
specific sales and marketing. The majority of the other operational 
areas – including prototype production, failure analysis, reliability 
and qualification testing, and volume production – are often 
outsourced. While the largest integrated device manufacturers 
(so called Tier-1 IDMs) introduce a sufficient number of new 
products and have sufficient volumes to justify maintaining 
their own in-house failure analysis and “release to production” 
testing capabilities, most smaller IDMs (Tier-2 and Tier-3) and the 
majority of fabless semiconductor companies find it difficult to 
justify maintaining in-house capabilities and look to independent 
companies, such as EAG, to provide these services on an 
outsourced basis.
EAG has incurred significantly higher corporate costs than 
planned in a number of areas, including additional personnel 
and system costs to upgrade the finance, human resource and 
information technology departments, professional services fees 
related to being a public company, share-based compensation 
expense, as well as one-off costs relating to the decision to realign 
management responsibilities and terminate acquisition activity, 
pending the outcome of the strategic review. 
David A. Lahar 
Chief Executive Officer 
30 March 2008
CHIEF EXECUTIVE  
OFFICER’S REVIEW 4        EAG Limited Annual Report and Accounts 2007
Trading
For the full year, revenues increased by 145% to $69.2 million  
(2006: $28.3 million) reflecting the full year impact of acquisitions as 
well as moderate growth in underlying revenues. Geographically, 
revenues outside the US now account for 29% (2006: 4%) of total 
revenues, with significant growth in Asia.
Operating profit before special items increased by 170% to $16.1 
million (2006: $6.0 million), reflecting the full year impact  
of acquisitions, as offset by a number of one-time charges 
including $0.9 million in severance payments.
In the second half, revenues were 7% ahead of the first half, 
which primarily reflects the full year impact of acquisitions, offset 
by a moderate decline in underlying revenues. Nevertheless, 
gross margins were maintained in the second half as direct costs 
flexed with the change in revenues. However, there was a stepped 
increase in indirect costs and corporate overheads to support the 
future growth ambitions and to transition the business to a public 
company, so that operating profit before special items in the 
second half declined to $5.2 million (2007 H1: $10.9 million).
Net finance charges before special items increased to $8.1 
million (2006: $4.0 million), of which $1.2 million was incurred 
in the second half (2007 H1: $6.9 million) reflecting the geared 
financing structure  
before the IPO and the financing of the acquisition programme.
Consequently, profit before tax and special items increased to 
$8.0 million (2006: $1.9 million) reflecting revenue growth and the 
new financing structure at the IPO.
Certain special items amounting to a loss for the period of $107.5 
million (2006: $37.3 million loss) have been separately disclosed in 
order to present what the board considers to be a more balanced 
perspective of the underlying trading performance. These include 
management fees to related parties prior to the IPO, aborted 
acquisition expenses and legal costs, amortisation of acquired 
intangible assets, finance costs associated with the reorganisation 
and restructuring prior to the IPO, tax impact of special items and 
deferred taxation on restructuring at the IPO.
After special items, operating profit increased to $10.2 million  
(2006: $4.7 million) while the loss before tax was $100.8 million  
(2006: $35.4 million loss) reflecting the non-cash charges of debt 
instruments prior to the IPO.
Tax
Before the IPO, there was a minimal charge for taxation as the 
business was treated as a partnership for US tax purposes whose 
profits were distributed to its partners, who were responsible for 
income taxes on those profits.
EAG Limited and its wholly owned subsidiary, EAG Finance 
(Ireland) Limited, are resident and taxable in Ireland. However,  
the charge for taxation reflects the risk that the Internal Revenue 
Code could require EAG Limited to be treated as if it is also a US 
resident corporation following the reorganisation at the time of 
the IPO, as the tax status has not yet been resolved.
The tax rate on profit before tax and special items was 61% in  
2007 (2006: 1%), reflecting this new corporate structure. Taxation  
within special items is represented by the tax effect of special items  
and deferred taxation resulting from the restructuring at the IPO.  
After special items, the total tax charge for the year was $3.5 million 
(2006: $0.0 million).
Earnings per share
Earnings per share before special items decreased by 15% to  
6.7 cents (2006: 7.9 cents). After special items and consequent on 
restructuring prior to the IPO, the loss per share was 222.1 cents 
(2006: 147.2 cents loss) principally reflecting non-cash charges  
of debt instruments.
The average number of shares in issue was 47.0 million in  
2007 (2006: 24.1 million) and 66.7 million shares were in issue at  
31 December 2007.
Dividends
A maiden interim dividend of 3 cents per share was paid, while 
dividends in kind of $0.2 million (2006: $0.4 million) were made 
prior to the IPO. No final dividend is proposed.
Goodwill and intangible assets
Intangible assets are required to be capitalised and amortised  
over their useful lives. Goodwill, being the difference between the 
fair value of purchase consideration and the fair value of net assets 
(including intangible assets), is required to be capitalised and not 
amortised. At the year end, the carrying value of goodwill and 
intangible assets has been reviewed and their value was upheld.
Cash flow
Cash generated from operations increased by 144% to $16.7 million 
(2006: $6.8 million), reflecting the strong cash generative nature of the 
underlying businesses. During the year there was capital expenditure 
of $5.4 million mainly for instruments and expenditure of $61.7 million 
on four acquisitions, which were financed by new loans and existing 
cash resources. There are further payments of $8.9 million payable to 
the vendors of acquired companies and businesses and other related 
payables, of which $7 .8 million is payable in 2008.
Expenditure of $6.1 million for a new building, which was under 
construction at the time of the acquisition of Micro Electronic Failure 
Analysis Services Inc, is included within expenditure on acquisitions. 
The original intention had been to lease the building but, since it was 
not ready at the date of acquisition, it was purchased outright with 
the intention of an eventual sale and leaseback. Any refinancing has 
been postponed, pending progress on the strategic review.
Treasury
EAG raised £125 million at the IPO. Since then, EAG obtained a  
$140 million multi-currency secured credit facility, comprising a  
$1 25 million term loan facility for acquisition purposes and a $1 5 million 
revolving credit facility for working capital and general corporate 
purposes. At the year end, the Group had net debt of $47 .1 million 
including $15.1 million of cash balances, together with $75.5 million of 
undrawn facilities. Subsequent to the year end, the facilities have been 
renegotiated, with the term loan facility reduced from $1 25 million to 
$60 million and the revolving credit facility unchanged at $15 million, 
which reflects termination of the acquisition strategy.
The rate of exchange between the US dollar and sterling averaged 
2.01 (2006: 1.84) during the year, while the rate of exchange was  
1.98 (2006: 1.96) at the year end.
Martin Hopcroft 
Chief Financial Officer 
30 March 2008
FINANCIAL REVIEW EAG Limited Annual Report and Accounts 2007        5
Mr. Ian R. Johnson, 54, Chairman 
Member, Remuneration and Governance 
& Nominating Committees
Mr. Johnson was appointed to the Board of the Company on  
3 June 2007 as a Non-Executive Director. From 1999 until 2006,  
Mr. Johnson was the Chief Executive Officer of Biotrace 
International Plc, a leading provider of microbiology related 
testing systems and reagents to customers in food, safety, 
industrial, healthcare and defence sectors. Biotrace became a 
public company in 1993 and was listed on the main market of the 
London Stock Exchange until its acquisition by 3M in December 
2006. Mr. Johnson was a co-founder of Biotrace and, prior to 
becoming Chief Executive Officer, served as its Technical Director 
from 1988 to 1996, and as its Marketing and Development Director 
from 1996 to 1999. Mr. Johnson is also Chairman of Finance Wales 
and Deputy Chairman of AIM listed AOI Medical Inc. Mr. Johnson 
studied at University College Cardiff obtaining an Honours Degree 
and a M.Sc. by thesis in Microbiology. Mr. Johnson is a chartered 
biologist, a member of the Institute of Biology and a member of 
the Institute of Directors. Mr. Johnson is the author of numerous 
publications and patents in the field of rapid microbiology.
Mr. David A. Lahar, 50, Chief Executive Officer 
Mr. Lahar is a founder of the EAG Group and the Chief Executive 
Officer having been on the board since September 2005. He is 
also a founding Managing Partner of Auriga Partners where he 
has been active since 1992. From 2004 to date, Mr. Lahar has 
been a member of the board of Clinical House MedTec GmbH, a 
leading supplier of orthopaedic implants in Germany. From 1999 
to 2001, Mr. Lahar was a founder and director of Qualpro Corp., an 
aerospace and defence component manufacturer. From 1992 to 
1996, Mr. Lahar was the President of Aurora Electronics, a company 
which he co-founded with Mr. Cowart and which was a leading 
provider of spare parts distribution services and electronics 
recycling and recovery services to computer manufacturers 
and field service providers. From 1986 to 1992, Mr. Lahar was 
a Managing Director in the Investment Banking Division of 
PaineWebber Incorporated. Mr. Lahar received a Master of Business 
Administration, awarded with Distinction, from Harvard Business 
School and a Bachelor of Arts, magna cum laude, in Economics and 
Government from Harvard College.
Mr. Jim C. Cowart, 56, Non-Executive Director 
Chairman, Governance & Nominating  
Committee Member, Audit Committee 
Mr. Cowart is a founder of EAG and has been on the board of 
directors of the Group since September 2005. Mr. Cowart is Vice 
Chairman of the Board, Chairman of the Corporate Governance 
and Nomination Committee, and a member of the Audit 
Committee. Mr. Cowart is a founding Managing Partner of Auriga 
Partners, where he has been active since 1992. From 2004 to date, 
Mr. Cowart has been Chairman of the board of Clinical House 
MedTec GmbH, a leading distributor of orthopaedic implants in 
Germany. From 1989 to date, Mr. Cowart has been a member of 
the board of directors of BE Aerospace, Inc. (NASDAQ-‘‘BEAV’’) 
and has previously been on the board of nine other public and 
private companies. From 1999 to 2001, Mr. Cowart was a founder 
and Chairman of the board of Qualpro Corp., an aerospace and 
defence component manufacturer. From 1992 to 1998,  
Mr. Cowart was the Chairman and Chief Executive Officer of  
Aurora Electronics, a reseller of computer spare parts and a 
recycler of computer systems, a company which he co-founded 
with Mr. Lahar in 1992. From 1987 to 1991, Mr. Cowart was a 
founding general partner of Capital Resource Partners, a $92 
million private investment fund focusing on providing mezzanine 
financing to middle market companies. From 1982 to 1987,  
Mr. Cowart was a Senior Vice President in the Investment Banking 
Division of Shearson Lehman/American Express and the President 
of Shearson Venture Capital. Mr. Cowart received a Masters in 
Business Administration awarded with Distinction from the 
Harvard Business School and a Bachelor of Arts in Computer 
Sciences from Pomona College.
Mr. Krishna Chivukula, 61, Non-Executive Director 
Member, Remuneration and Governance &  
Nominating Committees
Mr. Chivukula was appointed to the Board of the Company on 
3 June 2007 as a Non-Executive Director. He is currently the 
Chairman of the board of directors and sole shareholder of  
Indo-US MIM Tec Pvt Ltd. (‘‘Indo MIM’’), a high-volume 
manufacturer of small metal components that have complex 
geometries using metal injection moulding techniques for 
customers in the communications, optics, sporting goods, hand 
power tool and office automation industries. Until recently, 
Mr. Chivukula was the Chairman of the board and majority 
shareholder of The Shiva Group, the two principal operations of 
which—Shiva Technologies, Inc. and Shiva Technologies Europe 
SA—were acquired by EAG in December 2006. Prior to forming 
the Shiva Group of companies, Mr. Chivukula was the Group 
President and Chief Executive Officer of The Hoffman Group, a 
Syracuse, New York based multinational manufacturing company. 
Mr. Chivukula received a Bachelor of Technology degree with 
honors in Mechanical Engineering and a Master of Technology 
degree with distinction in Aerospace Engineering from The 
Indian Institute of Technology. Mr. Chivikula received a Masters in 
Business Administration from The Harvard Business School.
Mr. Dennis Millard, 59, Non-Executive Director 
Chairman, Remuneration Committee Member,  
Governance & Nominating Committee 
Mr. Millard was appointed to the Board of the Company on  
3 June 2007 as a Non-Executive Director and is the Chairman of 
the Remuneration Committee. From 1996 to 2005, Mr. Millard 
was the Group Finance Director for Cookson Group plc, a 
leading international materials science company that is currently 
a FTSE 250 company listed on the LSE. From 1994 to 1996, Mr. 
Millard was the Finance Director of Medeva plc, an international 
prescription pharmaceutical company. Currently, Mr. Millard 
holds board positions with the following listed companies: (a) 
Non-Executive Director and Chairman of the Audit Committee 
for Debenhams plc, one of the largest department store groups 
in the UK, (b) Non-Executive Director and Chairman of the 
Audit Committee for Xchanging plc, a company engaged in 
business processing services in human resources, procurement, 
customer administration, finance and accounting and securities 
processing, as well as the development and sale of computer 
software packages, (c) Chairman for Smiths News PLC, the leading 
wholesaler of newspapers and magazines in the UK, and (d) Non-
Executive Director of Premier Farnell PLC, a leading global multi-
channel distribution group supplying electronic components and 
BOARD OF DIRECTORS 6        EAG Limited Annual Report and Accounts 2007
industrial products. Previously, Mr. Millard was a Non-Executive 
Director and Chairman of the Audit Committees for Exel plc (2003 
until 2005) and ARC International plc (2001 until 2003). Mr. Millard is 
a member of the South African Institute of Chartered Accountants 
and received a Master of Business Administration, cum laude, from 
the University of Cape Town Graduate School of Business.
Mr. Peter O’Dwyer, 51, Non-Executive Director 
Member, Audit and Governance & Nominating Committees
Mr. O’Dwyer was appointed to the Board of the Company on  
3 June 2007 as a Non-Executive Director. From February 2004 to 
date, Mr. O’Dwyer is an independent consultant who provides 
advisory services in the areas of international mutual fund and 
hedge fund structures as well as corporate governance issues 
associated with the investment management industry. He is a 
non-executive director of a number of internationally marketed 
funds, both in Ireland and the Cayman Islands. Between 2000 and 
2004, Mr. O’Dwyer was Chief Executive Officer of Gensec Ireland 
Limited, a regulated investment company which provided a range 
of financial services products for international clients, including 
stock trading, treasury management, underwriting, fund raising 
and the provision of derivative and structured product solutions. 
From 2002 to 2004, Mr. O’Dwyer also served as the Chief Financial 
Officer of Gensec Bank International. During his time with Gensec, 
he was responsible for the USD 3 billion international mutual 
fund complex of the South African based Sanlam Group and 
established Ireland’s first equity arbitrage trading company, a fund 
administration business and a branch of Gensec Ireland in the City 
of London. From 1995 to 2000, Mr. O’Dwyer was a director in the 
financial services practice of PricewaterhouseCoopers in Dublin 
and, from 1991 to 1995, was a founding director of KPMG Financial 
Services. Mr. O’Dwyer holds an MA and primary degrees in both 
Economics and Business Studies from Trinity College, Dublin.  
He is a fellow of the Institute of Chartered Accountants in Ireland. 
He is a founding member and current secretary of the Investment 
Directors Forum, an umbrella body and educational group for 
the advocacy of best practice amongst directors of investment 
companies. He is incoming Chairman of the Ireland South Africa 
Business Association, a former member of the Council of the 
German-Irish Chamber of Industry and Commerce and was the 
founding Chairman of the London Irish Society.
Mr. Michael Stevens, 63, Non-Executive Director 
Chairman, Audit Committee Member, Governance &  
Nominating Committee
Mr. Stevens was appointed to the Board of the Company on 3 June 
2007 as a Non-Executive Director and is Chairman of the Audit 
Committee. From 2004 to 2005, Mr. Stevens was an Executive Vice 
President of GE Healthcare, the global medical diagnostics and 
biosciences business of the General Electric Company following 
GE’s acquisition of Amersham plc. From 2000 to 2004, Mr. Stevens 
was the Corporate Development Director of Amersham plc, a leader 
in medical diagnostics and life sciences, focused on diagnostic 
imaging, protein separations and discovery systems, in charge of 
corporate level merger and acquisition activity and the research 
and development portfolio analysis. From 1996 to 2000, Mr. Stevens 
was the Director of International Finance for Gedeon Richter Ltd., 
the largest pharmaceutical company in Hungary with sales of 
over $500 million. From 1978 to 1995, Mr. Stevens held increasingly 
responsible positions with Wellcome plc, finishing his tenure there 
as the Director of Group Planning and a member of the executive 
team charged with the merger of Wellcome with Glaxo, as well as 
a Trustee of the Wellcome Group Pension Fund. From 1969 to 1978, 
Mr. Stevens held various financial management positions  
with Syntex Corporation, a major US pharmaceutical company.  
Mr. Stevens is currently the Senior Independent Non-Executive 
Director for Lombard Medical Technologies plc. Mr. Stevens is a 
Fellow of the Chartered Institute of Management Accountants.
BOARD OF DIRECTORS (continued) EAG Limited Annual Report and Accounts 2007        7
a. Principal Activity and  
Business Review
EAG Limited (“EAG”) is a leading materials science testing services 
company incorporated in Jersey under the Companies (Jersey) 
Law 1991 and headquartered in Ireland. EAG acquired its business 
and operating subsidiaries from EAG Holdings LLC in June 2007 at 
the time that EAG became listed on the AIM market of the London 
Stock Exchange.  
EAG is a leading global provider of microanalytical surface 
analysis, microelectronic failure analysis and “release to production” 
testing services for integrated circuit (IC) development, EAG offers 
its customers highly sophisticated testing services broadly used in 
developing new processes or materials, transferring those processes 
to production, developing and qualifying new production 
tools, performing failure analysis, solving process problems in 
manufacturing, and providing third-party product validation. EAG’s 
surface analysis and materials characterization testing customers are 
primarily the research and development departments of companies 
developing products where properties of surfaces or thin layers 
are critical to product performance. The Group provides its testing 
services to a broad range of end-user market segments, including 
semiconductor capital equipment, electronic materials, specialty 
metals and alloys, semiconductor fabrication, photovoltaics, 
biomedical, pharmaceutical, and aerospace and defence.
EAG is also a leading global provider of microelectronic “release 
to production” and failure analysis (“RTP/FA”) testing services. 
EAG’s microelectronic failure analysis and “release to production” 
testing services are provided primarily to fabless semiconductor 
companies and small to medium-sized IC manufacturers. Services 
include automated test (ATE), failure analysis, circuit debug 
and edit, reliability and qualification testing (burn-in, stress, 
electro-static discharge and latch-up testing). These testing 
services are critical in bringing an integrated circuit design from 
conceptualisation to volume production..
b. Principal Risks and Uncertainties
The management of the business and the execution of the 
Group’s strategy are subject to a number of risks and uncertainties, 
which could have a material impact on the Company, as follows:
Dependence on senior management and highly trained 
scientists – The Group’s performance is dependent on the 
continued retention and performance of its senior management 
and its ability to attract and retain highly-trained scientists.
Cyclicality in certain customer market segments – Certain 
of the Group’s customer market segments have historically 
experienced cyclicality in revenue streams, particularly the 
semiconductor, semiconductor capital equipment and electronic 
materials segments. The Group typically provides its services to 
the research and development departments of its customers 
and downturns in the customers’ revenue streams may affect the 
expenditure of those departments.
Failure of information systems – The Group’s ability to maintain 
financial controls and provide a high-quality service to clients 
depends on the efficient and uninterrupted operation of its 
management information systems, including its computer systems.
Equipment reliability – The Group’s revenues depend on the 
availability of its instrumentation to perform relevant tests.
Limited visibility of order flow – The Group does not have long 
term contracts with its customers, so there can be no certainty of 
future business at the same levels as they have been historically.
Taxation – The Internal Revenue Service may seek to apply the 
US inversion rules (at IRC s7874) to make EAG Limited subject to 
US taxation, which could result in additional tax in the US as well 
as existing tax in Ireland, in addition to increased compliance or 
defence costs. The charge for taxation reflects this risk.
c. The Directors and their Interests 
in the Shares of the Company
The Directors set out in the table below have held office from the 
date of appointment stated below to the date of this report, unless 
otherwise stated:
Director Dates of Services
Mr. Ian Johnson (Non-Executive Chairman) Appointed 3 June 2007
Mr. David Lahar (Chief Executive Officer) Appointed 22 March 2007
Mr. Krishna Chivukula (Non-Executive Director) Appointed 3 June 2007
Mr. Jim Cowart (Non-Executive Director) Appointed 22 March 2007
Mr. Dennis Millard (Non-Executive Director) Appointed 3 June 2007
Mr. Peter O’Dwyer (Non-Executive Director) Appointed 3 June 2007
Mr. Michael Stevens (Non-Executive Director) Appointed 3 June 2007
Mr. Thomas B. Pfeil (former Chief Executive Officer)
Appointed 22 March 2007
Resigned 18 December 2007
DIRECTORS’ REPORT
for the year ended 31 December 2007 8        EAG Limited Annual Report and Accounts 2007
d. Other Significant Shareholdings
Shareholdings of 3% and more of the issued capital of the Company 
extracted from the shareholders’ register at 16 March 2008 and 
information received from shareholders’ nominees as of the date of 
this report are set out in the table at the bottom of this page.
e. Financial Risk Management
EAG does not have any written risk management policies and 
guidelines that set out its tolerance for risk and its general risk 
management philosophy, but management closely monitors 
EAG’s business risk exposure in connection with its financial assets 
and financial liabilities.  
f. Disclosure of Information  
to Auditors
Pursuant to article 112 of Companies (Jersey) Law 1991, each of the 
Directors confirms that: (a) so far as he is aware, there is no relevant 
audit information of which the Company’s auditors are unaware; 
and (b) he has taken all steps they ought to have taken to make 
himself aware of any relevant audit information and to establish 
that the Company’s auditors are aware of such information.
g. Annual General Meeting
The AGM of the Company will be held at the Shelbourne Hotel, 27 
St. Stephen’s Street, Dublin, 2, Ireland on Tuesday 27th May 2008 at 
11:00 am. Full details of the business of the AGM can be found in 
the Notice of Annual General Meeting.
h. Auditors
Deloitte & Touche LLP were appointed as the Company’s auditors 
by resolution of the Company’s board of directors on 3 June 2007, 
and accepted this appointment as of 31 August 2007. Deloitte & 
Touche LLP have indicated their willingness to continue as the 
Company’s auditors. In accordance with article 109 of Companies 
(Jersey) Law 1991, a resolution for their reappointment will be 
proposed at the upcoming Annual General Meeting. 
47 Esplanade 
St Helier 
Jersey 
JE1 0BD
By order of the Board.
David A. Lahar, Director 
30 March 2008
Shareholder Number of Ordinary Shares Percentage of Share Capital
Reach Capital Management 9,369,802 14.04%
American Capital Strategies Ltd. 8,275,000 12.40%
BlackRock, Inc. 6,122,970 9.17%
Morgan Stanley (as marketmaker) 3,909,369 5.86%
Polar Capital Forager Fund Ltd. 3,375,000 5.06%
Morgan Stanley 2,937,279 4.40%
Fidelity Investments 2,100,800 3.15%
Mr. Krishna Chivukula  2,730,000 4.09%
Mr. Jim Cowart  2,291,447 3.43%
Mr. David Lahar  2,043,447 3.06%
The interests of the Directors holding office on 31 December 2007 in the shares of the Company according to the shareholders’ register 
were as shown below:
Director Number of Ordinary Shares Percentage of Share Capital
Mr. Ian Johnson  10,000 0.01%
Mr. David Lahar  2,043,447 3.06%
Mr. Krishna Chivukula  2,730,000 4.09%
Mr. Jim Cowart  2,291,447 3.43%
Mr. Dennis Millard  20,000 0.03%
Mr. Peter O’Dwyer  – 0.00%
Mr. Michael Stevens  7,500 0.01%
DIRECTORS’ REPORT (continued) EAG Limited Annual Report and Accounts 2007        9
a. Compliance with the  
Combined Code
The Directors are committed to a high standard of corporate 
governance for which they are accountable to stakeholders and 
particularly shareholders. The Company applies, having regard 
to its size and nature, and so far as it considers practical and 
appropriate, the principles contained in Part 1 of the Combined 
Code appended to the Listing Rules published by the UK Listing 
Authority. The Company continues to monitor developments in 
the area of corporate governance.
b. Board of Directors
The Board is ultimately responsible for the effectiveness of the 
Company’s system of internal control. The roles and responsibilities 
of the Board and senior management are clearly defined and 
regularly reviewed. The Board includes an appropriate balance of 
executive and non-executive Directors and meets formally six times 
a year and on such other occasions as required by the demands of 
the business. It is supplied with information by senior management 
in a manner appropriate to enable it to discharge its duties of 
reviewing and approving the Company’s strategy, budgets, major 
items of capital expenditure and acquisitions.
The Directors set out in the table at the bottom of this page 
have held office from the date of appointment stated below to the 
date of this report, unless otherwise stated.
c. Audit Committee
The Audit Committee monitors the integrity of the financial 
statements of EAG. It also reviews EAG’s preliminary results, interim 
results and annual financial statements, oversees the relationship 
between EAG and its external auditors, and monitors and reviews 
EAG’s overall risk management systems giving due consideration 
to laws and regulations and the provisions of the Combined Code 
on Corporate Governance. It also reviews and challenges the 
consistency of any changes to accounting policies.
The Audit Committee is chaired by Mr. Michael Stevens and  
its other members are Mr. Jim C. Cowart and Mr. Peter O’Dwyer.
d. Remuneration Committee
The Remuneration Committee determines and makes 
recommendations to the Board on the framework for Board policy for 
remuneration of the Board and senior management. It ensures that 
EAG administers a fair and transparent procedure for setting relevant 
remuneration policies including the assessment of the performance 
of executive directors and senior executives of EAG and determining 
their remuneration packages. It also reviews the policies and targets 
for the employee share scheme and pension arrangements.
The Remuneration Committee is chaired by Mr. Dennis Millard and 
its other members are Mr. Krishna Chivukula and Mr. Ian Johnson.
e. Governance and  
Nominating Committee
The Governance and Nominating Committee is responsible for 
reviewing the size structure and composition of the Board and 
to give full consideration to succession planning for the Board 
and other senior executives and for identifying and nominating 
suitable candidates to fill any Board vacancies.
The Governance and Nominating Committee is chaired by Mr. Jim 
C. Cowart and its other members are Mr. Krishna Chivukula, Mr. Ian 
Johnson, Mr. Dennis Millard Mr. Michael Stevens and Mr. Peter O’Dwyer.
f. Internal controls
The Board has overall responsibility for the Company’s system of 
internal controls, which is designed to provide reasonable, but 
not absolute, assurance against misstatement or loss. The Board 
reviews the controls to satisfy themselves that the system is 
adequate and effective and provides reasonable assurance that 
problems are identified on a timely basis so that they can be dealt 
with quickly and appropriately.
The Company’s system of internal control has the following  
key features:
There is a clearly defined Board structure and delegation of •	
authority to committees of the Board. The roles of Chairman 
and CEO are separate. An organisation structure is in place 
which clearly defines lines of responsibility and delegation  
of authority.
EAG has a budgeting process, and the budget is reviewed and •	
approved by the Board.
Reports are prepared regularly by management and presented •	
to the Board for their review. These cover the financial and 
operational performance of EAG.
Monthly financial results are monitored and unexpected •	
items are reviewed, investigated and action is taken where 
appropriate to address areas of concern.
There are procedures established for the approval of capital •	
expenditure. There are authorisation levels and clearly defined 
control policies and procedures for all transactions.
g. Dialogue with shareholders
The Company seeks to ensure that all shareholders are kept 
informed about EAG and its activities. The Company maintains 
communication with shareholders through RNS announcements, 
via EAG’s website and through interim and annual reports and 
accounts. There is dialogue with institutional investors and also 
the occasion of the Annual General Meeting at which there is the 
opportunity for shareholders to meet with and put questions to 
the Board.
h. Going Concern
After making enquiries, the Directors are satisfied that EAG has 
adequate resources to continue in operational existence for the 
foreseeable future. Consequently, they continue to adopt the 
going concern basis in preparing the financial statements.
CORPORATE GOVERNANCE REPORT 10        EAG Limited Annual Report and Accounts 2007
The Remuneration Committee’s terms of reference are set and 
approved by the Board. It is the policy of the Committee to 
ensure that fees and remuneration packages offered respectively 
to Non-Executive and Executive Directors are competitive 
and commensurate with individual performance, experience 
and market conditions and appropriate for the responsibilities 
involved. No Director plays a part in the decision of his own fees  
or remuneration.
a. Directors’ Contracts and Letters 
of Appointment
Mr. David Lahar, the sole Executive Director, has a service contract 
with the Company which is terminable by either party upon 
service of not less than twelve months’ notice. Each Non-Executive 
Director has a letter of appointment as well as a services contract 
each of which is terminable by either party upon service of not 
less than one month’s notice.
On 3rd June 2007, each of the Non-Executive directors entered 
into a three year service contract with the Company. Their 
appointments were made subject to re-election at the 2008 
annual general meeting of the Company and thereafter subject 
to the retirement on rotation provisions set out in the articles of 
association of the Company. In the event that the Non Executive 
Director is removed from office at the request of the Company, the 
Non-Executive’s compensation will continue for 1 year or until the 
end of the appointment, whichever is less.
b. Executive Directors’  
Remuneration
The main elements of Mr. David Lahar’s remuneration package  
are as follows:
a basic salary of $275,000, which is reviewed annually; •	
options over 300,000 ordinary shares at an exercise price of  •	
265 pence per share;
standard employee benefits such as medical and life insurance. •	
Mr. Lahar is not entitled to a pension contribution but is entitled 
to payments by the Company of up to $1,800 per annum into a 
contributory retirement plan. Mr. Lahar is entitled to repayment of 
all reasonable travel and other expenses properly incurred in the 
course of his duties.
c. Share Scheme
The Company operates a discretionary Share Option and Enterprise 
Management Incentive Plan for all Directors and employees of the 
Group. The number of ordinary shares issued under the plan or 
subject to unexpired options granted under the plan cannot exceed 
10 percent of the Company’s issued share capital. 
The exercise of an option can be made conditional upon targets 
imposed by the Company, and if those targets are not satisfied 
or are not capable of being satisfied, the option automatically 
and immediately lapses. In addition, the Company can include 
a condition as to when an option will become exercisable. If the 
Option is granted free from any such targets or conditions then 25 
percent of the option is exercisable per year for the first four years. 
An option holder may exercise his option within six months of his 
employment ceasing with any member of the Company’s group 
due to death, ill health, injury or disability. Otherwise, an option 
holder has a period of 60 days after his employment ceases, unless 
the employee has been dismissed for cause in which case his 
option immediately lapses whether it is exercisable at that time or 
not. All Options become immediately exercisable in the event that 
there is a change of control of the Company.
On 26 June 2007 , the Company granted share options for a total 
of 2,567 ,000 shares to employees at an exercise price of 265 pence 
per share, of which 2,135,000 remain outstanding. All such options 
are exercisable over a four year period commencing twelve months 
from the date of grant, with 25 percent becoming exercisable on 
each of the first four anniversaries of the date of grant.
d. Emoluments
The remuneration of each Director who served during the year, 
excluding share options, is set out in the table below:
REMUNERATION REPORT
Executive Directors Salary Bonus Severance Total
Mr. David Lahar $1 57,964 $– $– $1 57,964
Mr. Thomas Pfeil (former) $307,645 $– $497,829 $804,474
Non-Executive Directors Fees Paid in Cash Fees Payable in Shares Total
Mr. Ian Johnson $34,945 $20,000 $54,945
Mr. Jim Cowart $34,945 $20,000 $54,945
Mr. Krishna Chivukula $34,945 $20,000 $54,945
Mr. Dennis Millard $34,945 $20,000 $54,945
Mr. Peter O’Dwyer $61,590 $20,000 $81,590
Mr. Michael Stevens $34,945 $20,000 $54,945
Mr. Thomas Pfeil has agreed to continue to provide services to the Company through a transition period as part of his severance. EAG Limited Annual Report and Accounts 2007        11
e. Directors’ Contractual Benefits
David Lahar, Evans Analytical Group LLC and the Company 
entered into a service agreement on 20 June 2007 for his services 
as Executive Chairman of the Company. Mr. Lahar’s title changed 
to Chief Executive Officer of the Company on 18 December 2007 
with no other changes to his service agreement. Mr. Lahar is 
entitled to a basic salary of $275,000 per annum. The agreement 
is terminable by Mr. Lahar by him giving not less than 12 months 
written notice to the Company. The Company can terminate by 
giving not less than 12 months written notice. Mr. Lahar is not 
entitled to a performance related bonus, although the Company 
may grant a bonus to Mr. Lahar in the future based on certain 
annual EBITDA targets of EAG being achieved. Mr. Lahar is not 
entitled to a pension contribution but is entitled to payments 
by the Company into a contributory retirement plan. Mr. Lahar 
participates in standard medical and life insurance cover offered 
by Evans Analytical Group LLC and is entitled to repayment of all 
reasonable travel and other expenses properly incurred in the 
course of his duties. Mr. Lahar also received 300,000 share options 
in the Company granted on 26 June 2007 with an exercise price of 
265 pence per ordinary share. 
The Company entered into service agreements with each of 
Mr. Chivukula, Mr. Cowart, Mr. Johnson, Mr. Millard, Mr. O’Dwyer, 
and Mr. Stevens on 3 June 2007 under which the fees for their 
services are £40,000 per annum of which £30,000 is payable in 
cash quarterly in arrears. The balance of £10,000 is paid once a year 
by the issue of shares in the Company with a value of £10,000 (by 
reference to the mid market price on the date prior to allotment 
but having regard to the restrictions attached to the shares). Such 
shares are subject to restrictions on disposal on a sliding scale 
from Year 1 to Year 5. The first such allotment of ordinary shares 
was issuable effective as of 15 July 2007 in respect of the 2007 
financial year and thereafter ordinary shares are issuable on 5 
January of each year in respect of that financial year. The parties 
may agree that a greater proportion of the fees will be satisfied by 
the issue of Ordinary Shares on the same terms.
Ian Johnson and the Company entered into amended service 
agreements on 23 January 2008, changing his compensation 
effective as of his appointment as Non-Executive Chairman on  
19 December 2007. From 19 December 2007, the fees payable for 
the services of Mr. Johnson are £10,000 per month for a minimum 
of 5 days of services per month, plus £2,000 (plus VAT if applicable) 
per day for each day of service in excess of 5 days per month. All 
such fees are payable monthly in arrears in cash.
REMUNERATION REPORT (continued) 12        EAG Limited Annual Report and Accounts 2007
The Directors are responsible for keeping proper accounting 
records which disclose with reasonable accuracy at any time the 
financial position of the group, for safeguarding the assets and for 
taking reasonable steps for the prevention and detection of fraud 
and other irregularities.
The Directors are also responsible for preparing the annual 
report and financial statements in accordance with the 
requirements of the Companies (Jersey) Law 1991 and have 
chosen to prepare the financial statements for the group and the 
company in accordance with International Financial Reporting 
Standards as adopted by the European Union. The group and 
parent company are required by law and IFRS as adopted by 
the EU to present fairly the financial position of the group and 
the parent company and the performance for that period; the 
Companies (Jersey) Law 1991 provides in relation to such financial 
statements that references in the relevant part of that Act to 
financial statements giving a true and fair view are references to 
their achieving a fair presentation. In preparing these financial 
statements, the Directors are required to:
select suitable accounting policies and then apply them •	
consistently;
make judgments and estimates that are reasonable and •	
prudent;
state whether they have been prepared in accordance with •	
International Financial Reporting Standards as adopted by the 
European Union; and
prepare the financial statements on the going concern basis •	
unless it is inappropriate to presume that the group and the 
parent company will continue in business.
The Directors are responsible for the maintenance and integrity 
of the Company’s website. Legislation in Jersey governing the 
preparation and dissemination of financial statements may differ 
from legislation in other jurisdictions.
STATEMENT OF DIRECTORS’ 
RESPONSIBILITIES EAG Limited Annual Report and Accounts 2007        13
We have audited the group and parent company financial 
statements of EAG Limited (the “financial statements”) for the year 
ended 31 December 2007 which comprise the consolidated income 
statement, the consolidated statement of recognised income and 
expenses, the consolidated balance sheet, the consolidated cash 
flow statement and the related notes 1 to 43, together with the 
parent company income statement, the parent company statement 
of recognised income and expenses, the parent company balance 
sheet, the parent company cash flow statement and the related 
notes 1 to 12. These financial statements have been prepared under 
the accounting policies set out therein.
The group and parent company have not previously prepared 
statutory accounts. Accordingly, comparatives for the year ended 
31 December 2006 are unaudited.
This report is made solely to the company’s members, as a 
body, in accordance with Article 110 of the Companies (Jersey) 
Law 1991. Our audit work has been undertaken so that we might 
state to the company’s members those matters we are required 
to state to them in an auditors’ report and for no other purpose. 
To the fullest extent permitted by law, we do not accept or 
assume responsibility to anyone other than the company and the 
company’s members as a body, for our audit work, for this report, 
or for the opinions we have formed.
Respective responsibilities of  
directors and auditors
The directors’ responsibilities for preparing the financial 
statements in accordance with applicable law and International 
Financial Reporting Standards (IFRSs) as issued by the International 
Accounting Standards Board are set out in the Statement of 
Directors’ Responsibilities.
Our responsibility is to audit the financial statements in 
accordance with relevant legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial 
statements give a true and fair view and are properly prepared in 
accordance with the Companies (Jersey) Law 1991. We also report 
to you if, in our opinion, the Directors’ Report is not consistent 
with the financial statements, if the company has not kept proper 
accounting records or if we have not received all the information 
and explanations we require for our audit.
We read the Directors’ Report for the above year and consider 
the implications for our report if we become aware of any 
apparent misstatements or material inconsistencies with the 
financial statements.
Basis of audit opinion
We conducted our audit in accordance with International 
Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board. An audit includes examination, on a test basis, of 
evidence relevant to the amounts and disclosures in the financial 
statements. It also includes an assessment of the significant 
estimates and judgments made by the directors in the preparation 
of the financial statements, and of whether the accounting 
policies are appropriate to the group’s circumstances, consistently 
applied and adequately disclosed.
We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or other irregularity 
or error. In forming our opinion we also evaluated the overall 
adequacy of the presentation of information in the financial 
statements.
Opinion
In our opinion:
the financial statements give a true and fair view, in accordance •	
with IFRSs as issued by the International Accounting Standards 
Board, of the state of the group and parent company’s affairs 
as at 31 December 2007 and of the group’s loss and parent 
company’s profit for the year then ended; and
the financial statements have been properly prepared in •	
accordance with the Companies (Jersey) Law 1991.
Deloitte & Touche LLP 
Chartered Accountants 
London, United Kingdom 
31 March 2008
INDEPENDENT AUDITORS’ REPORT TO 
THE MEMBERS OF EAG LIMITED 14        EAG Limited Annual Report and Accounts 2007
CONSOLIDATED  
INCOME STATEMENT
for the year ended 31 December 2007
2007
unaudited 
2006 
 
Before 
special 
items
Special 
items Total
Before 
special 
items
Special 
items Total
 Notes $’000 $’000 $’000 $’000 $’000 $’000
 
Revenue 3,5 69,199 — 69,199 28,287 — 28,287
 
Operating Expenses
Staff costs 10 (28,372) — (28,372) (12,472) — (12,472)
Severance 10 (927) — (927) — — —
Share-based  
compensation 10, 41 (755) — (755) — — —
Facilities (5,101) — (5,101) (2,664) — (2,664)
Equipment maintenance (2,820) — (2,820) (999) — (999)
Aborted acquisition costs and  
other acquisition related expenses — (896) (896) — — —
Management fees 12 — (222) (222) — (455) (455)
Other operating expenses (11,020) — (11,020) (3,895) — (3,895)
Total operating expenses (48,995) (1,118) (50,113) (20,030) (455) (20,485)
Depreciation and impairment 8 (4,116) — (4,116) (2,305) — (2,305)
Amortisation 8 — (4,765) (4,765) — (846) (846)
 
Operating profit/(loss) 16,088 (5,883) 10,205 5,952 (1,301) 4,651
Interest income 5,1 1 240 — 240 3 — 3
Finance costs  1 1 — (100,246) (100,246) — (35,433) (35,433)
Other finance costs 1 1 (8,311) (2,706) (11,01 7) (4,025) (592) (4,617)
Total finance costs (8,071) (102,952) (111,023) (4,022) (36,025) (40,047)
 
Profit/(loss) before tax 8,017 (108,835) (100,818) 1,930 (37 ,326) (35,396)
Tax benefit/(expense) 13 (4,856) 1,354 (3,502) (20) — (20)
 
Profit/(loss) for the period 3,161 (107,481) (104,320) 1,910 (37 ,326) (35,416)
Earnings/(loss) per share  
($/share)
Basic and diluted 15 0.067 (2.288) (2.221) 0.079 (1.551) (1.472) EAG Limited Annual Report and Accounts 2007        15
CONSOLIDATED STATEMENT OF 
RECOGNISED INCOME AND EXPENSES
for the year ended 31 December 2007
Notes
2007  
$’000
unaudited 
2006  
$’000
Gain on rescission of put options 135,679 —
Gain on redemption of preferred units 836 —
Redemption of paid-in-kind equity 1,907 —
Share based compensation 762 —
Exchange differences on translation of foreign operations 35 1,822 (2)
Net income / (expense) recognised directly in equity 141,006 (2)
Loss for the financial year (104,320) (35,416)
Total recognised income / (expense) for the period 36,686 (35,418) 16        EAG Limited Annual Report and Accounts 2007
CONSOLIDATED BALANCE SHEET
at 31 December 2007
Notes
2007 
$’000
unaudited  
2006 
$’000
Non-current assets 
Goodwill 16 76,049 35,871
Other intangible assets 17 69,405 51,885
Property, plant and equipment 18 62,659 34,156
Other non-current assets 949 589
Deferred tax asset 27 7,008 449
    Total non-current assets 216,070 122,950
Current assets
Inventories 19 590 451
Trade and other receivables 20 17,846 10,305
Cash and cash equivalents 20 15,054 9,067
     Total current assets 33,490 19,823
Total assets 249,560 142,773
Current liabilities
Trade and other payables 21 12,555 4,868
Current tax liabilities 13,27 1,918 367
Deferred revenue 22 1,324 527
Acquisition-related liabilities 23 7,801 6,629
Obligations under finance leases 28 — 631
Other financial liabilities 29 — 215
Revolving credit line and current debt maturities 24 15,686 8,497
     Total current liabilities 39,284 21,734
Non-current liabilities
Revolving credit line 24 — 2,064
Convertible note - debt portion 24 — 3,534
Long-term loan facility 24 46,479 —
Senior secured and subordinated notes 24 — 93,094
Warrant put option liability 36 — 35,433
Redeemable preferred units — 7,778
Acquisition related liabilities 23 1,066 4,362
Obligations under finance leases 28 — 8
Other long-term liabilities 222 104
Deferred tax liability 27 15,107 2,855
     Total non-current liabilities 62,874 149,232
Total liabilities 102,158 170,966
     Net assets / (liabilities) 147,402 (28,193)
Equity:  EAG Limited
   Share capital 30 1,339 —
   Share premium 31 253,603 —
   Capital redemption reserve 34 (104,899) —
   Translation reserve 35 1,821 —
   Retained Earnings 36 (4,462) —
Equity:  EAG Holdings, LLC
   Preferred units 33 — 6,895
   Convertible note - equity portion 26 — 1,366
   Translation reserve 35 — (1)
   Retained Earnings 36 — (36,453)
Total equity/(deficit) 147,402 (28,193)
The financial statements were approved by the board of directors and authorised for issue on 30 March 2007.  They were signed on its behalf by:
David A. Lahar, Director EAG Limited Annual Report and Accounts 2007        17
Notes
2007 
$’000
unaudited 
2006 
$’000
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2007
Operating profit 10,205 4,651
Adjustments for:
Depreciation of property, plant and equipment 3,782 2,007
Impairment loss on fixtures and equipment 334 298
Amortisation of intangible assets 4,765 846
Increase in bad debt provision 737 —
Share-based payment expense 755 —
Operating cash flows before movements in working capital 20,578 7,802
(Increase)/decrease in inventories (90) 79
Increase in trade and other receivables (4,232) (1,366)
Increase in other non-current assets (90) (36)
(Decrease)/increase in trade and other payables (1,223) 361
Decrease in deferred revenue (261) (72)
Increase in other non-current liabilities 2,024 70
Cash generated by operations 16,706 6,838
Income taxes paid (746) (30)
Net cash from operating activities 15,960 6,808 
Investing activities
Interest received 240 —
Purchases of property, plant and equipment (5,400) (2,288)
Acquisition of businesses 37 (61,676) (77,651 )
Cash acquired with businesses 37 158 5,385
Net cash used in investing activities (66,678) (74,554)
Financing activities
Proceeds from borrowings 104,000 84,950 
Payment of debt issue costs — (2,181)
Repayments of borrowings (145,758) (3,533)
Borrowings under other financing arrangements — 344
Repayments of other financing arrangements (214) —
Payments of pre-acquisition debt on seller’s behalf (20,170) —
Repayments of obligations under finance leases (643) (129)
Proceeds on issue of EAG Limited shares 252,594 —
Dividends paid (2,002) —
Payments to acquire certain equity interests (104,899) —
Share issuance costs (1 7,599) —
Proceeds from issuance of Preferred Units 238 —
Payment for Preferred Unit issue costs — (48)
Proceeds from exercise of warrants 59 —
Interest paid (9,861) (3,191)
Net cash from financing activities 55,745 76,212
Net increase in cash and cash equivalents 5,027 8,466
Cash and cash equivalents at beginning of period  9,067 623
Effect of foreign exchange changes 960 (22)
Cash and cash equivalents at end of period 38 15,054 9,067 18        EAG Limited Annual Report and Accounts 2007
NOTES TO THE CONSOLIDATED 
FINANCIAL STATEMENTS
for the year ended 31 December 2007
1. General information
EAG Limited (“EAG”, “the Company”, or, together with its 
subsidiaries, “the Group”) is incorporated in Jersey and 
headquartered in Ireland. The address of the Company’s principal 
place of business is 26 Upper Pembroke Street, Dublin 2, Ireland.  
The address of the Company’s registered office is 47 Esplanade,  
St Helier, Jersey JE1 0BD.
The Group is a leading provider of micro analytical surface 
testing and materials characterisation services. The Group offers 
its customers highly sophisticated testing services broadly 
used in developing new processes or materials, transferring 
those processes to production, developing and qualifying new 
production tools, performing failure analysis, solving process 
problems in manufacturing, and providing third-party product 
validation. EAG’s customers are primarily the research and 
development departments of companies developing products 
where properties of surfaces or thin layers are critical to product 
performance. The Group provides its testing services to a broad 
range of end-user market segments, including the semiconductor 
capital equipment, specialty metals and materials, electronic 
materials, semiconductor fabrication, biomedical, pharmaceutical, 
aerospace, and defence.
On 26 June 2007, EAG completed its flotation on the AIM 
market of the London Stock Exchange, in which it acquired all of 
the operating subsidiaries of EAG Holdings LLC (the “Predecessor 
Company”), a limited liability company, formed on 30 August 2005 
in the state of Delaware, United States of America, located at 810 
Kifer Road, Sunnyvale, California, United States, 94086.
On 26 June 2007, EAG (and its wholly-owned subsidiary EAG 
(Ireland) Finance Limited) acquired the operating subsidiaries of 
the Predecessor Company. As a result of this reverse acquisition, 
EAG became the legal parent of the Group, and the Predecessor 
Company became a legal subsidiary within the Group. See Note 7 
– Reorganisation for further information related to the basis for the 
financial information herein. 
These financial statements are presented in US Dollars because 
that is the currency of the primary economic environment in 
which the Group operates. Foreign operations are included in 
accordance with policies in note 3.
2. Adoption of new and  
revised Standards
In the current year, the Group has adopted IFRS 7 Financial 
Instruments: Disclosures which are effective for annual reporting 
periods beginning on or after 1 January 2007 , and the related 
amendment to IAS 1 Presentation of Financial Statements. The 
impact of the adoption of IFRS 7 and the changes to IAS 1 has been 
to expand the disclosures provided in these financial statements 
regarding the Group’s financial instruments and management of 
capital (see note 25). Four Interpretations issued by the International 
Financial Reporting Interpretations Committee are effective for 
the current period. These are IFRIC 7 Applying the Restatement 
Approach under IAS 29, Financial Reporting in Hyperinflationary 
Economies; IFRIC 8 Scope of IFRS 2; IFRIC 9 Reassessment of 
Embedded Derivatives; and IFRIC 10 Interim Financial Reporting and 
Impairment. The adoption of these Interpretations has not led to 
any changes in the Group’s accounting policies.
At the date of authorisation of these financial statements, the 
following Standards and Interpretations which have not been applied 
in these financial statements were in issue but not yet effective:
 IFRS 8 — Operating segments •	
 IFRIC 11 IFRS 2 — Group and Treasury Share Transactions •	
 IFRIC 12 — Service Concession Arrangements •	
 IFRIC 13 — Customer Loyalty Programmes •	
 IFRIC 14 IAS 19 — the Limit on a Defined Benefit Asset, •	
Minimum funding Requirements and their interactions
 IAS 23 (revised) — Borrowing Costs •	
 IFRS 3 (revised) — Business Combinations •	
The Directors anticipate that the adoption of these Standards 
and Interpretations in future periods will not have a material 
impact on the financial statements of the Group.
The principal accounting policies adopted in both the current 
and prior period are set out below.
3. Significant accounting policies
Basis of accounting
These financial statements have been prepared in accordance with 
International Financial Reporting Standards (“IFRS”). The financial 
statements have been prepared on the historical cost basis with 
acquisitions being accounted for at their fair value at the time 
of acquisition. Comparatives for the year ended 31 December 
2006 are neither audited nor reviewed, as EAG Limited has not 
previously prepared statutory accounts. The financial information 
for the year ended 31 December 2006 has been extracted from the 
supplementary admission document of EAG Limited dated  
25 June 2007. Statutory accounts for 2007 will be delivered to  
the Companies Registry in Jersey after the company’s Annual 
General Meeting. 
Basis of consolidation
The consolidated financial statements incorporate the financial 
statements of the Company and entities controlled by the 
company (its subsidiaries) made up to 31 December each year. 
Control is achieved where the company has the power to govern 
the financial and operating policies of an investee entity so as to 
obtain benefits from its activities.
The results of subsidiaries acquired by the Predecessor 
Company during the year are included in the consolidated income 
statement from the effective date of acquisition.
The results of subsidiaries acquired or disposed of during the 
year are included in the consolidated income statement from 
the effective date of the acquisition or up to the effective date of  EAG Limited Annual Report and Accounts 2007        19
disposal, as appropriate.
Where necessary, adjustments are made to the financial 
statements of subsidiaries to bring the accounting policies used 
into line with those used by the Group.
All intra-group transactions, balances, income and expenses are 
eliminated on consolidation.
The Group owned 100% of the above subsidiaries at year-end. 
Names
Place of
incorporation\
registration
Primary
Business Activity
EAG Finance (Ireland) Limited Ireland Finance & Treasury
Evans Analytical Group LLC Delaware, USA Analytical Services
Evans Taiwan, LLC Delaware, USA Analytical services
Cascade Scientific Ltd England and Wales Analytical services
Cascade Scientific GmbH Germany Analytical services
Shiva Technologies Europe SAS France Analytical services
Nano Science KK Japan Sales and services
Evans Electronic Technology (Shanghai) Company Limited China Analytical services
Special items
2007 
$’000
unaudited  
2006 
$’000
Management fees 222 455
Other – aborted acquisition expenses and legal costs 896 —
Amortisation of acquired intangible assets 4,765 846
Special items before interest and tax 5,883 1,301
Finance expenses 2,706 592
Other finance costs 100,246 35,433
Special items before tax 108,835 37,326
Taxation (1,354) —
Special items after tax 107,481 37,326
Certain special items have been separately disclosed in order 
to present, in the board’s view, a more balanced perspective 
of the underlying trading performance. Management fees 
represent payments to related parties prior to the initial public 
offering. Aborted acquisition expenses and legal costs reflect the 
decision to terminate the acquisition programme pending a full 
strategic review of the business, as well as litigation expenses. 
Amortisation represents the non-cash charge for intangible assets 
of acquisitions. Finance expenses represent dividends in kind 
on redeemable preferred units and write-off of capitalised loan 
fees of EAG Holdings LLC, consequent on the refinancing prior 
to the initial public offering. Other finance costs represent the 
non-cash charge for the change in value of put options of EAG 
Holdings LLC, which were classified as liabilities and offset by a 
capital contribution to retained earnings in advance of the initial 
public offering. The tax credit represents the impact of taxation on 
special items and deferred taxation on restructuring at the initial 
public offering.
Aborted acquisition costs and  
other acquisition related expenses:
As of year end, the Group suspended further acquisitions and 
expensed the costs associated with acquisitions that were in 
process at that time. In addition, the Group has filed a claim with 
respect to funds held in escrow related to alleged breaches  
of representations and warranties in regard to the  
Accurel acquisition.  
Business combinations
The acquisition of subsidiaries and businesses is accounted 
for using the purchase method. The cost of the acquisition is 
measured as the aggregate of the fair values, at the date of 
exchange, of assets given, liabilities incurred or assumed, and 
equity instruments issued by the Group in exchange for control of 
the acquiree, plus any costs directly attributable to the business 
combination. The acquiree’s identifiable assets, liabilities and 
contingent liabilities that meet the conditions for recognition 
Details of the Group’s principal subsidiaries at 31 December 2007 are as follows: 20        EAG Limited Annual Report and Accounts 2007
under IFRS 3, Business Combinations, are recognised at their fair 
value at the acquisition date.
Goodwill arising on acquisition is recognised as an asset 
and initially measured at cost, being the excess of the cost of 
the business combination over the Group’s interest in the net 
fair value of the identifiable assets, liabilities and contingent 
liabilities recognised. If, after reassessment, the Group’s interest 
in the net fair value of the acquiree’s identifiable assets, liabilities 
and contingent liabilities exceeds the cost of the business 
combination, the excess is recognised immediately in profit or loss. 
Goodwill
Goodwill arising on consolidation represents the excess of the 
cost of acquisition over the Group’s interest in the fair value of the 
identifiable assets and liabilities of a subsidiary, associate or jointly 
controlled entity at the date of acquisition. Goodwill is initially 
recognised as an asset at cost and is subsequently measured at cost 
less any accumulated impairment losses. The Group tests goodwill 
annually for impairment or more frequently if there are indications 
that goodwill might be impaired. Any impairment is recognised 
immediately in profit or loss and is not subsequently reversed.
For the purpose of impairment testing, goodwill is allocated to 
each of the Group’s cash-generating units expected to benefit 
from the synergies of the combination. Cash generating units 
(“CGUs”) to which goodwill has been allocated is tested for 
impairment annually, or more frequently when there is an  
indication that the unit may be impaired. If the recoverable 
amount of the cash-generating unit is less than the carrying 
amount of the unit, the impairment loss is allocated first to reduce 
the carrying amount of any goodwill allocated to the unit and 
then to the other assets of the unit pro-rata on the basis of the 
carrying amount of each asset in the unit. An impairment loss 
recognised for goodwill is not reversed in a subsequent period.
Revenue recognition
Revenue from analytical services is recognised at the time the 
service is completed and the final report is delivered to the 
customer. Revenue from product sales is recognised upon 
shipment. Revenue is reported net of discounts, any VAT and other 
sales related taxes and intra-group transactions. Finance income 
is recognised in the period in which it arises. Liabilities for future 
services acquired during business combinations are recognised 
at the estimated fair value of the services to be performed at the 
date of acquisition and recorded as a liability. 
Non-cash exchange of future services 
The Group will occasionally engage in non-cash exchanges of 
instruments for future services. The value of the instrument and 
future services are recorded at the estimated fair value at the date 
of the transaction. The instrument is included in property, plant 
and equipment, and depreciated over its estimated future life. 
Revenue associated with the liability for future services is released 
into revenue when the service has been completed.
Leasing
Leases are classified as finance leases whenever the terms of the 
lease transfer substantially all the risks and rewards of ownership 
to the lessee. All other leases are classified as operating leases.
The Group as lessee
Assets held under finance leases are recognised as assets of the 
Group at their fair value or, if lower, at the present value of the 
minimum lease payments, each determined at the inception of 
the lease. The corresponding liability to the lessor is included in 
the balance sheet as a finance lease obligation. Lease payments 
are apportioned between finance charges and reduction of the 
lease obligation so as to achieve a constant rate of interest on  
the remaining balance of the liability. Finance charges are charged  
directly against income. 
Rentals payable under operating leases are charged to income 
on a straight-line basis over the term of the relevant lease.
Foreign currencies
The individual financial statements of each group company, where 
applicable, are presented in the currency of the primary economic 
environment in which it operates (its functional currency). For 
the purpose of the consolidated financial statements, the results 
and financial position of each group company are expressed 
in United States dollars, which is the functional currency of the 
Predecessor Company, and the presentation currency of EAG for 
the consolidated financial statements.
In preparing the financial statements of the individual 
companies, transactions in currencies other than the entity’s 
functional currency (foreign currencies) are recorded at the 
rates of exchange prevailing on the dates of the transactions. 
At each balance sheet date, monetary assets and liabilities that 
are de-nominated in foreign currencies are translated at the 
rates prevailing on the balance sheet date. Non-monetary items 
carried at fair value that are denominated in foreign currencies are 
translated at the rates prevailing at the date when the fair value 
was determined. Non-monetary items that are measured in terms 
of historical cost in a foreign currency are not retranslated.
Exchange differences are recognised in profit or loss in the 
period in which they arise except for:
 exchange differences which relate to assets under construction •	
for future productive use, which are included in the cost of 
those assets when they are regarded as an adjustment to 
interest costs on foreign currency borrowings;
 exchange differences on transactions entered into  •	
to hedge certain foreign currency risks; and
 exchange differences on monetary items receivable from •	
or payable to a foreign operation for which settlement is 
nether planned nor likely to occur, which form part of the net 
investment in a foreign operation, and which are recognised  
in the foreign currency translation reserve and recognised in 
profit or loss on disposal of the net investment.
Exchange differences arising on the retranslation of non-monetary 
items carried at fair value are included in profit or loss for the period 
except for differences arising on the translation of non-monetary 
items in respect of which gains and losses are recognised directly in 
equity. For such non-monetary items, any exchange component of 
that gain or loss is also recognised directly in equity.
For the purpose of presenting consolidated financial statements, the 
assets and liabilities of the Group’s foreign operations are translated at 
exchange rates prevailing on  
the balance sheet date. Income and expense items are translated at the 
average exchange rates for the period, unless exchange rates fluctuate 
significantly during that period, in which case the exchange rates at the 
date of transactions are used. Exchange differences arising, if any, are 
classified as equity.
Goodwill and fair value adjustments arising on the acquisition of a 
foreign entity are treated as assets and liabilities of the foreign entity and 
translated at the closing rate.
Taxation
Taxation comprises both current tax and deferred tax. Taxation is 
recognised in the income statement, except to the extent that it 
relates to items recognised directly in equity, in which case it is 
recognised in equity. EAG Limited Annual Report and Accounts 2007        21
Corporation tax
The corporation tax charge is based upon the profits for the year.
EAG Limited is tax resident in Ireland and is subject to Irish 
tax laws. The Group has operating subsidiaries in China, France, 
Germany, Ireland, Japan, the United Kingdom and the United 
States. Each subsidiary is subject to the tax laws of the jurisdictions 
in which they operate. There is also an operating subsidiary 
in Taiwan, which is incorporated in the United States, which is 
subject to the tax laws of both the United States and Taiwan. 
Deferred tax
Deferred tax is provided using the balance sheet method on all 
temporary differences, except those arising on initial recognition 
of goodwill or where the temporary difference arose on the initial 
recognition of an asset or liability in a transaction which was not a 
business combination and which at the time of the transaction affects 
neither accounting profit or taxable profit. The amount of deferred 
tax provided is based on the expected manner of realisation or 
settlement of the carrying amount of assets and liabilities, using tax 
rates enacted or substantially enacted at the balance sheet date.
Deferred tax is calculated at the tax rates that are expected  
to apply in the period when the liability is settled or the asset 
is realised. A deferred tax asset is recognised only to the extent that it 
is probable that future taxable profits will be available against which 
the asset can be utilised. Deferred tax assets are reduced to the 
extent that it is no longer probable that the related tax benefit will be 
realised. The recoverability of deferred tax assets is assessed annually.
Property, plant and equipment
Properties in the course of construction for production, rental or 
administrative purposes are carried at cost, less any recognised 
impairment loss. Cost includes professional fees and, for qualifying 
assets, borrowing costs capitalized in accordance with the Group’s 
accounting policy. Depreciation of these assets on the same basis 
as other property assets commences when assets are ready for 
their intended use. Freehold land is not depreciated.
Depreciation is charged so as to write off the cost or valuation 
of assets, other than land and properties under construction, over 
their estimated useful lives, using the straight-line method, on the 
following bases:
Estimated Useful Life:
Buildings 50 years
Building and leasehold improvements 3 to 50 years
Instruments and laboratory equipment 5 to 25 years
Office furniture and equipment 5 to 7 years
Computers 5 years
Vehicles 5 years
Assets held under finance leases are depreciated over their 
expected useful lives on the same basis as owned assets. Leasehold 
improvements are depreciated over the shorter of the estimated 
useful life of the asset or the remaining term of the lease. 
Property, plant and equipment are stated at cost less 
accumulated depreciation and any recognised impairment loss.
Gains and losses on disposals of tangible assets are determined 
as the difference between net proceeds and the carrying amount 
of the asset and are recognised in income in the period in which 
the asset is disposed.
Construction in process
Construction in process is a temporary account used to 
accumulate the costs of bringing an asset to the location and 
condition necessary for it to be capable of operating in its 
intended manner prior to placing it into service. These costs 
include the purchase price of the asset, moving costs, installation, 
assembly, testing and other direct costs required to ensure the 
asset is operating properly. Once the asset is operating according 
to its intended use, these costs are reclassified to an appropriate 
category within property, plant and equipment. The asset is then 
depreciated over its useful life.
During the current period construction in process includes a 
building and freehold land acquired with an acquisition (please 
see note 37). The building was completed in January 2008 and 
placed in service.
Intangible assets
Amortisation is charged so as to write off the cost or valuation 
of intangible assets over their estimated useful lives, using the 
straight-line method, on the following bases:
Estimated Useful Life:
Technology 4 to 15 years
Customer base 10 years
Software 5 to 10 years
Non-compete agreements 5 years
Goodwill and trademarks have indefinite lives and are not subject to amortisation. 22        EAG Limited Annual Report and Accounts 2007
Impairment of tangible and intangible assets 
excluding goodwill
At each balance sheet date, the Group reviews the carrying 
amounts of its tangible and intangible assets to determine 
whether there is any indication that those assets have suffered 
an impairment loss. If any such indication exists, the recoverable 
amount of the asset is estimated in order to determine the 
extent of the impairment loss (if any). Where the asset does not 
generate cash flows that are independent from other assets, the 
Group estimates the recoverable amount of the cash-generating-
unit (CGU) to which the asset belongs. An intangible asset with 
an indefinite useful life is tested for impairment annually and 
whenever there is an indication that the asset may be impaired. 
Recoverable amount is the higher of fair value less costs to sell 
and value in use. In assessing value in use, the estimated future 
cash flows are discounted to their present value using a pre-tax 
discount rate that reflects current market assessments of the time 
value of money and the risks specific to the asset for which the 
estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or CGU) is estimated to 
be less than its carrying amount, the carrying amount of the asset 
(CGU) is reduced to its recoverable amount. An impairment loss is 
recognised as an expense immediately, unless the relevant asset is 
carried at a revalued amount, in which case the impairment loss is 
treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying 
amount of the asset (CGU) is increased to the revised estimate of 
its recoverable amount, but so that the increased carrying amount 
does not exceed the carrying amount that would have been 
determined had no impairment loss been recognised for the asset 
(CGU) in prior years. A reversal of an impairment loss is recognised 
as income immediately.
Inventories
Inventories consist of physical inventories and services in process.
Inventories are stated at the lower of cost and net realisable 
value. Costs comprise of direct materials, and where applicable, 
direct labour costs and those overheads that have been incurred 
in bringing the inventories to their present location and condition. 
Cost is calculated using the specific identification method. 
Net realisable value represents the estimated selling price less 
all estimated cost of completion and cost to be incurred in 
marketing, selling and distribution. 
Services in process consist of labour and other costs associated 
with unbilled services at the end of the reporting period. These 
costs are stated at direct cost, including an appropriate portion of 
fixed and variable overhead expenses.
Financial instruments
Financial assets and financial liabilities are recognised in the 
Group’s balance sheet when the Group becomes a party to the 
contractual provisions of the instrument.
Trade receivables
Trade receivables are measured at initial recognition at fair value. 
Appropriate allowances for estimated irrecoverable amounts are 
recognised in profit or loss when there is an indication that the 
assets are not recoverable. The allowance recognised is measured 
as the difference between the asset’s carrying amount and the 
present value of estimated future cash flows discounted at the 
effective interest rate computed at initial recognition.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand 
deposits and other short-term highly liquid investments that are 
readily convertible to a known amount of cash and are subject to 
an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according 
to the substance of the contractual arrangements entered into. An 
equity instrument is any contract that evidences a residual interest 
in the assets of the Group after deducting all of its liabilities.
Borrowings
Interest-bearing loans and notes are recorded at the proceeds 
received, net of direct issue costs. Finance charges, including 
direct issue costs, are accounted for on an accrual basis in profit 
or loss using the effective interest rate method and are netted 
against the carrying amount of the instrument to the extent that 
they are not settled in the period in which they arise.
Trade payables
Trade payables are initially measured at fair value, and are 
subsequently measured at amortised cost, using the effective 
interest rate method.
Equity instruments
Equity instruments issued by the Group are recorded at the 
proceeds received, net of direct issue costs.
Provisions
Provisions are recognised when the Group has a present 
obligation as a result of a past event, and it is probable that the 
Group will be required to settle that obligation. Provisions are 
measured at managements best estimate of the expenditure 
required to settle the obligation at the balance sheet date, and are 
discounted to present value where the effect is material.
Share-based compensation
The Group has applied the requirements of IFRS 2 Share-based 
Payment. 
The Group issues equity-settled share-based payments 
to certain employees. Equity-settled share-based payments 
are measured at fair value at the date of grant. The fair value 
determined at the grant date of the equity-settled share-based 
payments is expensed on a straight-line basis over the  
vesting period, based on the group’s estimate of shares  
that will eventually vest. 
Fair value is measured by use of the Black-Scholes model. 
The expected life used in the model is adjusted, based on 
management’s best estimate, for the effects of non-transferability, 
exercise restrictions and behavioural considerations.  EAG Limited Annual Report and Accounts 2007        23
4. Critical accounting  
judgements and key sources  
of estimation uncertainty
In the application of the Group’s accounting policies, which are 
described in note 3, management is required to make judgements, 
estimates and assumptions about the carrying amounts of assets 
and liabilities that are not readily apparent from other sources. 
The estimates and associated assumptions are based on historical 
experience and other factors that are considered to be relevant. 
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an 
ongoing basis. Revisions to accounting estimates are recognised 
in the period in which the estimate is revised if the revision affects 
only that period or in the period of the revision and future periods 
if the revision affects both current and future periods.
Critical judgements and key sources of  
estimation uncertainty in applying the group’s 
accounting policies
The key assumptions concerning the future, and other key sources 
of estimation at the balance sheet date that are expected to have 
the greatest risk of causing a material adjustment to the carrying 
amount of assets and liabilities within the next financial year, are 
discussed below.
Useful lives of property, plant and equipment
The Group reviews the estimated useful lives of  
property, plant and equipment at the end of each  
annual reporting period.
Intangible assets
When the Group makes an acquisition, management reviews the 
business and assets acquired to determine whether any intangible 
assets should be recognised separately from goodwill. If such an 
asset is identified, then its fair value is determined by discounting 
the probable future cash flows expected to be generated by 
the asset, over the estimated life of the asset. Where there is 
uncertainty over the amount of economic benefit and the useful 
life this is factored into the calculation.
Impairment of goodwill
The Group determines whether goodwill is impaired at a 
minimum on an annual basis. This requires an estimation of the 
value in use of the cash generating units to which the goodwill 
is allocated. Estimating the value in use requires the Group to 
make an estimate of the expected future cash flows from the cash 
generating unit that holds the goodwill at a determined discount 
rate to calculate the present value of those cash flows.
For the purpose of testing for impairment, goodwill is allocated 
to CGUs and tested by comparing the carrying amount of the CGU 
with the higher of its fair value less costs to sell and its value in use. 
The value in use calculations utilises an estimate of the future cash 
flows expected to arise from the CGU and an appropriate discount 
rate in order to calculate present value.
Recoverability of trade receivables
Trade receivables are reflected net of an estimated provision for 
doubtful accounts. This provision is based primarily on a review of 
all outstanding accounts and considers the past payment history 
and creditworthiness of each account and the length of time that 
the debt has remained unpaid (see note 20).
Year ended
31 Dec 2007
US$’000
unaudited
Year ended  
31 Dec 2006
US$’000
Revenue from analytical services 68,897 28,057
Revenue from product sales and other 302 230
Total trading revenue 69,199 28,287
Interest income 240 3
Total revenue 69,439 28,290
5. Revenue 24        EAG Limited Annual Report and Accounts 2007
6. Business and geographical segments
The Group currently provides one type of service across various geographical regions. Management considers that the Group has one 
business segment, analytical testing services, and reports its primary segment information on a geographical basis. Segment information 
about these geographical regions is presented below:
Year ended 31 December 2007
United
States
US$’000
Asia
US$’000
Europe
US$’000
Eliminations
US$’000
Consolidated
US$’000
Revenue
Revenue 57,843 13,350 6,803 (8,797) 69,199
Inter-segment revenue (8,591) (4) (202) 8,797 —
Total revenue 49,252 13,346 6,601 — 69,199
Segment Results
Operating profit before unallocated corporate expenses 10,586 979 1,494 (67) 12,992
Unallocated corporate expenses (2,787)
Operating profit 10,205
Finance costs related to change in value of put options (100,246)
Other finance costs, net of interest income (10,777)
Loss before tax (100,818)
Tax benefit (3,502)
Loss after tax (104,320)
Other Information
Capital additions 4,550 131 719 — 5,400
Acquisitions of subsidiaries and businesses 59,170 — — — 59,170
Exchange differences — 103 107 — 210
Depreciation and amortisation 7,631 424 826 — 8,881
Impairment losses recognised in income 334 — — — 334
Balance sheet
Assets
Segment assets 226,396 12,010 20,162 (14,394) 244,174
Unallocated corporate assets 5,386
Consolidated total assets 249,560
Liabilities
Segment liabilities 236,906 10,002 8,170 (219,285) 35,793
Unallocated corporate liabilities 66,365
Consolidated total liabilities 102,158 EAG Limited Annual Report and Accounts 2007        25
United
States
US$’000
Asia
US$’000
Europe
US$’000
Eliminations
US$’000
Consolidated
US$’000
Revenue
External revenue 27,1 39 1,148 — — 28,287
Inter-segment revenue 1,083 — — (1,083) —
Total revenue 28,222 1,148 — (1,083) 28,287
Segment Results
Operating profit before unallocated corporate expenses 5,773 (631) (36) — 5,106
Unallocated corporate expenses (455)
Operating profit 4,651
Finance costs (40,047)
Loss before tax (35,396)
Tax (20)
Loss after tax (35,416)
Other Information
Capital additions 2,794 44 — — 2,838
Acquisitions of subsidiaries and businesses 8,878 1,450 2,739 — 13,067
Transfer (224) 224 — — —
Exchange differences — 3 (9) — (6)
Depreciation and amortisation 2,698 149 6 — 2,853
Impairment losses recognised in income 298 — — — 298
Balance sheet
Assets
Segment assets 1 16,96 1 10,210 18,163 (3,010) 142,324
Unallocated corporate assets 449
Consolidated total assets 142,773
Liabilities
Segment liabilities 2,558 5,020 655 (3,010) 5,223
Unallocated corporate liabilities 165,743
Consolidated total liabilities 170,966
7 . Reorganisation
On 26 June 2007, a reverse acquisition took place by which the 
group headed by the Predecessor Company was transferred 
to EAG (and its wholly-owned subsidiary EAG Finance (Ireland) 
Limited). As a result of this reverse acquisition, EAG became the 
legal parent of the Group, and the Predecessor Company became 
a legal subsidiary. The financial statements of EAG represent 
a continuation of the financial statements of the Predecessor 
Company and its former subsidiaries. The assets and liabilities of 
the Predecessor Company and its former subsidiaries are 
recognised and measured in the consolidated financial statements 
at their pre-combination carrying amounts. 
The retained earnings and other equity balances recognised in 
the consolidated financial statements are the retained earnings 
and other equity balances of the Predecessor Company and its 
former subsidiaries immediately before the reverse acquisition.
6. Business and geographical segments (continued)
Year ended 31 December 2006 26        EAG Limited Annual Report and Accounts 2007
9. Auditors’ remuneration
Year ended
31 Dec 2007
US$’000
unaudited
Year ended  
31 Dec 2006
US$’000
Net foreign exchange losses 46 2
Depreciation expense
    Owned equipment 3,782 2,007
Impairment loss on fixtures and equipment 334 298
Amortisation of intangibles 4,765 846
Operating lease expense
    Buildings 3,082 1,878
    Office equipment — 14
Total operating lease expense 3,082 1,892
Staff costs (see note 10) 30,054 12,472
Management fees (see note 12) 222 455
Finance costs (see note 11) 111,023 40,047
Year ended
31 Dec 2007
US$’000
unaudited
Year ended  
31 Dec 2006
US$’000
Fees payable to the company’s auditors for the audit of the company’s 
annual accounts
616 —
Fees payable to the company’s auditors and their associates for other 
services to the group:
    The audit of the company’s subsidiaries pursuant to legislation  71 —
Total audit fees 687 —
Fees payable to the company’s auditors and their associates for other 
services to the group
Other services pursuant to legislation 330
Tax services 300 —
Corporate finance services 1,912 —
Other services 15 —
Total non-audit fees 2,557 —
Fees payable to Deloitte and their associates for non-audit services to the company are not required to be disclosed separately because 
the consolidated financial statements disclose these fees on a consolidated basis.
8. Loss for the year
Costs are presented by the nature of the expense to the Group. 
Loss before tax is stated after charging the following items: EAG Limited Annual Report and Accounts 2007        27
10. Staff costs
Remuneration of key management personnel
The remuneration of the key management personnel of the Group is set out below in aggregate for each of the categories specified in  
IAS 24 Related Party Disclosures.
Year ended
31 Dec 2007
Numbers
unaudited
Year ended  
31 Dec 2006
Numbers
Scientists, engineers and other analytical staff 242 94
Executives 5 3
Marketing, finance and G&A 56 21
Monthly average number of employees 303 1 18
Year ended
31 Dec 2007
US$’000
unaudited
Year ended  
31 Dec 2006
 US$’000
Post-employment benefits 13 6
Other long-term benefits 116 36
Salaries and incentive plan 1,803 985
Total 1,932 1,027
Year ended
31 Dec 2007
US$’000
unaudited
Year ended  
31 Dec 2006
 US$’000
Their aggregate remuneration comprised:
Wages and salaries:
Scientists, engineers and other analytical staff 19,560 8,509
Executive salaries 1,497 985
Marketing, finance and G&A 2,716 1,023
Total wages & salaries 23,773 10,517
Health insurance and payroll taxes 4,119 1,770
Other pension costs (see note 42) 480 185
   Sub-total 28,372 12,472
Severance costs 927 —
Share-based compensation 755 —
Aggregate remuneration 30,054 12,472 28        EAG Limited Annual Report and Accounts 2007
1 1. Finance costs 
On 2 September 2005 the Predecessor Company issued Preferred 
Units which carried the right to payment-in-kind dividends and 
with warrants attached giving the holder the right to acquire 
Common Units of the Predecessor Company for $0.01 per 
Common Unit.
Certain of the Preferred Units also carried mandatory 
redemption rights that allowed the holder to require the 
Predecessor Company to purchase the Preferred Unit at $1.00 
per Preferred Unit (the “Redemption Units”). The warrants also all 
carried mandatory put options that allowed the warrant holders  
to require the Predecessor Company to purchase the Common 
Units acquired under the warrants at the fair market value of a 
Common Unit at the time of exercising the put (the “Warrants”). 
The Redemption Units and Warrants were exercisable by their 
holders at the earlier of September 2011 or on the sale of the 
Predecessor Company. 
The Redemption Units and their associated payment-in-kind 
dividends were classified as liabilities and the value of payment-
in-kind dividends distributed to holders of Redemption Units 
was charged to other finance costs at $1.00 per Redemption Unit. 
In the six months ended 30 June 2007, EAG recorded a finance 
charge in respect of the Redemption units of $2,706,000 (year 
ended 31 December 2006: $4,614,000; six months ended 30 June  
2006: $1,963,000).
The Warrants were classified as liabilities valued at the fair 
market value of a Common Units with the result that substantially 
all of the economic value of the Predecessor Company was shown 
as a liability to its equity holders in its balance sheet. Increases 
in the fair value of the liability in respect of the Warrants, which 
varied with the fair value of the Predecessor Company, were 
recorded as finance costs. In the six months ended 30 June 2007, 
EAG recorded a finance charge in respect of the Warrants of 
$100,246,000 (year ended 31 December 2006: $35,433,000; six 
months ended 30 June 2006: $nil).
On 25 June 2007, the Predecessor Company, holders of 
the Redemption Units and holders of the War-rants signed a 
Rescission Agreement in which the Limited Liability Company 
Agreement of the Predecessor Company and the terms of 
the warrants were amended to rescind the redemption rights 
attached to the Redemption Units and to rescind the put options 
associated with the Warrants with immediate effect.
As a result of this Rescission Agreement, the fair market values 
of the Redemption Units and Warrants as at 25 June 2007 were 
transferred from liabilities to retained earnings as a capital 
contribution, offsetting the losses previously recorded as a  
result of the finance charges incurred. As a result of the rescission, 
there will be no future finance charges relating to Redemption 
Units or Warrants.
Year ended 31 Dec 2007
unaudited 
Year ended 31 Dec 2006
Before
Special items
US$’000
Special
items
US$’000
Total
US$’000
Before
Special items
US$’000
Special
items
US$’000
Total
US$’000
Change in the value of put option — 100,246 100,246 — 35,433 35,433
Dividends in kind on Redeemable 
Preferred Units
— 307
307
— 592 592
Interest on bank loans and notes 6,969 — 6,969 3,684 — 3,684
Interest on holdbacks and other  
acquisition related liabilities
295 —
295
83 — 83
Interest on convertible loan notes 146 — 146 — — —
Interest on obligations  under  
finance arrangements
89 —
89
7 — 7
Loan fee amortisation 812 — 812 251 — 251
Write-off of capitalised loan fees — 2,399 2,399 — — —
Total interest expense 8 , 3 1 1                                    102,952 111,263 4,025 36,025 40,050
Interest income (240) — (240) (3) — (3)
Total finance costs 8,071 102,952 111,023 4,022 36,025 40,047 EAG Limited Annual Report and Accounts 2007        29
12. Management fees
13. Tax 
Until 26 June 2007 , management fees were payable to related 
parties, specifically American Capital Strategies, Ltd. (“ACAS”) and 
Auriga Partners Inc. (“Auriga”), pursuant to agreements reached 
in connection with investments in the Predecessor Company by 
ACAS and Auriga. Until the reorganisation and IPO on 26 June 2007 , 
ACAS received an annual management fee of $300,000 payable 
in quarterly installments of $75,000. The ACAS management 
agreement was terminated effective 26 June 2007 following the 
IPO and reorganisation. Auriga, which is a California corporation 
jointly owned and operated by David Lahar (currently the Chief 
Executive Officer) and Jim Cowart (currently a board member) 
received an annual management fee in the amount of $154,000 
annually, payable in quarterly installments of $38,500 each 
calendar quarter. Following the IPO and reorganisation, the Auriga 
management agreement was terminated effective 26 June 2007. 
Total management fees paid in the six months ended 30 June 2007 
were $222,000 (2006: $227 ,000), and $455,000 in management fees 
were paid for the year ending 31 December 2006.
EAG Limited and its wholly owned subsidiary, EAG Finance (Ireland) Limited, are resident and taxable in Ireland. However, the charge 
for taxation reflects the risk that the Internal Revenue Code could require EAG Limited to be treated as if it is a US resident corporation 
following the reorganisation at the time of the initial public offering, as the tax status has not yet been resolved.
Year ended
31 Dec 2007
US$’000
unaudited
Year ended  
31 Dec 2006
US$’000
Management fees 222 455
Year ended
31 Dec 2007
US$’000
unaudited
Year ended  
31 Dec 2006
US$’000
Current Tax Expense
Current Year 2,188 20
Adjustments for prior years 20 —
Current expense 2,208 20
Deferred tax expense
Origination and reversal of temporary differences 1,294 —
Benefit of tax losses recognised — —
   Deferred tax expense 1,294 —
Net income tax expense in income statement 3,502 20
Reconciliation of effective tax rate
Loss before tax (100,818) (35,396)
Income tax using the domestic corporation tax rate  
(2007 – 12.5%, 2006 – 34%) (12,602) (12,035)
Effect of tax rates in foreign jurisdictions (29,396) 15
Income taxable at higher domestic rate 20 —
Tax adjusting expenses 44,077 12,040
Losses not utilised / losses forward utilised 109 —
Change in recognised temporary differences 1,294 —
3,502 20 30        EAG Limited Annual Report and Accounts 2007
14. Dividends 
15. Loss per share
Loss 
Number of Ordinary Shares/Units
Year ended
31 Dec 2007
US$’000
unaudited
Year ended  
31 Dec 2006
US$’000
Amounts recognised as distributions to equity  
holders in the period:
Dividend-in-kind (paid to EAG Holdings unit holders) 249 437
Interim dividend paid for the year ended 31 December  
2007 of 3 cents per share 2,002 —
Provision for withholding tax on interim dividend 622 —
2,873 437
Year ended
31 Dec 2007
US$’000
unaudited
Year ended  
31 Dec 2006
US$’000
Loss for the purposes of basic and diluted earnings/(loss) per Share/Unit 
being net loss attributable to equity holders of the parent (104,320) (35,416)
Year ended
31 Dec 2007
US$’000
unaudited
Year ended  
31 Dec 2006
US$’000
Weighted average number of Shares/Units for the purposes  
of basic and diluted loss per Unit 46,963 24,053
The Group’s equity share capital comprises Ordinary Shares of  
EAG Limited. Prior to the AIM IPO on 26 June 2007, the Predecessor 
Company’s equity capital comprised both Common Units and 
Preferred Units with associated warrants convertible into Common 
Units that, for purposes of this presentation, are treated as 
common unit equivalents.
As a result of the reverse acquisition, the capital structure at 31 
December 2007 is that of EAG Limited whereas at 31 December 
2006, the balance sheet reflects the capital structure of EAG 
Holdings LLC. In accordance with IAS 33, loss per share has been 
presented on the basis of EAG Limited’s capital structure.
During the reverse acquisition, prior to the IPO the  
various equity instruments in EAG Holdings LLC were exchanged 
for ordinary shares in EAG Limited (see note 11).
As a result of the loss for the period ended 31 December 2007 
potentially dilutive instruments have been excluded from the 
calculation of diluted loss per unit as their effect would  
be antidilutive.  EAG Limited Annual Report and Accounts 2007        31
16. Goodwill
US$’000
Cost and carrying amount
At 1 January 2006 1,933
Recognised on acquisition of subsidiaries and businesses 33,932
Exchange differences 6
At 31 December 2006 35,871
Recognised on acquisition of subsidiaries and businesses 36,843
Exchange differences 645
Other changes:
   Deferred tax adjustments 2,595
  Other adjustment to opening balance sheets 95
As at 31 December 2007 76,049
Goodwill is subject to annual impairment testing or more 
frequently if there are indications that goodwill might be impaired.
Deferred tax adjustments consist of the deferred taxes 
recognised at the time of the IPO with respect to the 2006 
acquisitions. This arises from differences in book and tax basis for 
intangibles, fixed assets and certain accruals.
Other adjustments to opening balance sheets include: fair 
value adjustments to instruments arising from alterations to 
the provisional valuations made to certain assets acquired in 
2006, adjustments to consideration for working capital acquired 
reflecting additional consideration paid to former equity holders 
in relation to purchases made in 2006 and other miscellaneous 
adjustments.
The recoverable amounts of the cash generating units (“CGUs”) 
are determined from the discounted free cash flow forecast 
valuation and management’s review of the recoverable amount.  
A CGU is the smallest identifiable group of assets that generates 
cash inflows that are largely independent of cash inflows from 
other assets or group of assets. The Group considers that it only  
has one CGU.        
The Group prepares cash flow forecasts derived from the most 
recent budget and four year forecast and extrapolates future 
cash flows using a terminal growth rate of 2.85%. Management 
estimates discount rates using pre-tax rates that reflect 
management’s assessment of the risks of the CGU. The rate used 
to discount the forecast cash flows was 8.65%.
The recoverable amount exceeded the carrying value at year-end. 
Therefore, goodwill was not impaired at the balance sheet date. 32        EAG Limited Annual Report and Accounts 2007
17 . Other intangible assets
Trademarks
US$’000
Customer
Base 
US$’000
Technology
US$’000
Non-
compete
Agreements
US$’000
Software
US$’000
Total
US$’000
Cost
At 1 January 2006 3,165 5,089 698 200 850 10,002
Additions
Acquired on acquisitions of subsidiaries and 
businesses 2,330 8,880 28,740 2,990 — 42,940
Exchange differences — (2) 18 (1) — 15
At 31 December 2006 5,495 13,967 29,456 3,189 850 52,957
Additions
Acquired on acquisitions of subsidiaries and 
businesses 4,761 14,000 1,000 1,200 71 1 21,672
Exchange differences 63 139 364 47 — 613
At 31 December 2007 10,319 28,106 30,820 4,436 1,561 75,242
Amortisation
At of 1 January 2006 — 154 25 17 30 226
Charge for the year — 510 154 92 90 846
At 31 December 2006 — 664 179 109 120 1,072
Charge for the year — 1,867 2,037 763 98 4,765
At 31 December 2007 — 2,531 2,216 872 218 5,837
Carrying amount
At 31 December 2006 5,495 13,303 29,277 3,080 730 51,885
At 31 December 2007 10,319 25,575 28,604 3,564 1,343 69,405 EAG Limited Annual Report and Accounts 2007        33
18. Property, plant and equipment
Buildings
and
leasehold
improvements
US$’000
Instruments
and
laboratory
equipment
US$’000
Office
furniture
and
equipment
US$’000
Computers
US$’000
Vehicles
US$’000
Construction
in process
US$’000
Total
US$’000
Cost
At 1 January 2006 952 18,875 309 187 12 782 21,1 1 7
Additions (1) 460 2,198 47 133 — — 2,838
Acquired on acquisitions of 
subsidiaries and businesses 389 12,416 151 76 32 3 13,067
Transfers — 598 — — — (598) —
Disposals (9) — — — — — (9)
Exchange differences — (5) (1) — — — (6)
At 1 January 2007 1,792 34,082 506 396 44 187 37,007
Additions 137 3,886 62 293 78 944 5,400
Acquired on acquisitions of 
subsidiaries and businesses 391 16,773 57 63 6 9,714 27,004
Disposals — (45) (5) — — — (50)
Exchange differences 8 183 14 3 2 — 210
At 31 December 2007 2,328 54,879 634 755 130 10,845 69,571
Accumulated depreciation
At 1 January 2006 67 468 19 1 1 2 — 567
Charge for the period 261 1,629 59 56 2 — 2,007
Impairment losses — 298 — — — — 298
Disposals (9) — — — — — (9)
Exchange differences — (12) — — — — (12)
At 1 January 2007 319 2,383 78 67 4 — 2,851
Charge for the year 410 3,144 94 1 1 9 15 — 3,782
Impairment losses — 334 — — — — 334
Disposals — (45) (5) — — — (50)
Exchange differences — (3) (2) — — — (5)
At 31 December  2007 729 5,813 165 186 19 — 6,912
Carrying amount
At 31 December  2006 1,473 31,699 428 329 40 187 34,156
At 31 December  2007 1,599 49,066 469 569 1 1 1 10,845 62,659
The carrying amount of the Group’s fixtures and equipment 
includes an amount of $nil (2006: 1,713,000) in respect of assets 
held under finance leases.
An impairment loss of $334,000 arose during the year (2006: 
298,400) when management identified that certain instruments 
were held in excess of fair value.  
(1) 2007 additions include $nil (2006: $551,000) of non-cash 
additions wherein the Group exchanged future analytical services 
for an analytical instrument. 2007 cash additions were $5,400,000 
(2006: $2,288,000).
19. Inventories
2007
US$’000
unaudited  
2006
US$’000
Inventories 22 —
Services in process 568 451
Total inventories 590 451 34        EAG Limited Annual Report and Accounts 2007
20. Other financial assets
Trade and other receivables
2007
US$’000
unaudited 
2006
US$’000
Trade debtors:
    Total receivables 15,868 8,848
    Less allowance for potential uncollectible receivables (998) (299)
Trade debtors, net 14,870 8,549
Restricted cash 20 102
Other debtors 791 275
Prepayments 2,165 1,367
Due from affiliates — 12
Total 17,846 10,305
2007
US$’000
 unaudited 
2006
US$’000
31 - 60 days 2,151 742
60 - 90 days 1,056 353
90 - 120 days 737 198
120 -180 days 418 —
Over 180 days 249 —
Total 4,611 1,293
2007
US$’000
unaudited 
2006
US$’000
Balance at the beginning of the period 299 127
Amounts written off as uncollectible (294) (49)
Additional provision for potential uncollectible accounts 993 221
Balance at the end of the period 998 299
Trade receivables
Total trade receivables (net of allowances) held by the Group at 
31 December 2007 amount to $14.9 million (2006: $8.5 million), 
comprising the amount presented above.
The average credit period taken on sales of the Group’s  
services is 58 days (2006: 49 days). No interest is charged on  
trade receivables. 
An allowance has been made for estimated irrecoverable 
amounts from the sale of services of $998,000 (2006: $299,000). 
This allowance has been determined by reviewing the age and 
potential collectibility of certain receivables at the balance sheet 
date with reference to past default experience.
Included in the Group’s trade receivable balance are debtors 
with a carrying amount of $4.6 million (2006: $1.3 million) which 
are past due at the reporting date for which the Group has not 
provided as there has not been a significant change in credit 
quality and the amounts are still considered recoverable.  
The Group does not hold any collateral over these balances.  
The average age of these receivables is 82 days (2006: 62 days).
The Group’s principal financial assets are bank balances and 
cash, and trade and other receivables.
The Group’s credit risk is primarily attributable to its trade 
receivables. The amounts presented in the balance sheet are 
net of allowances for doubtful receivables. An allowance for 
impairment is made where there is an identified loss event which, 
based on previous experience, is evidence of a reduction in the 
recoverability of the cash flows.
There is no material difference between the above amounts for 
trade and other receivables and their fair value, due to their short 
term duration. There is no concentration of credit risk with respect 
to trade receivables as no single customer has greater than 5% of 
total accounts receivable at year end.
Aging of past due but not impaired receivables:
The carrying amount of trade and other receivables approximates their fair value.
Movements in the allowance for doubtful debts: EAG Limited Annual Report and Accounts 2007        35
2007
US$’000
 unaudited  
2006
US$’000
Cash and cash equivalents 15,054 9,067
2007
US$’000
  unaudited  
2006
US$’000
Loan guarantee — 84
Rental facility Guarantee 20 18
Total restricted cash 20 102
2007
US$’000
  unaudited  
2006
US$’000
Accrued payroll and related liabilities 4,063 2,371
Trade payables 1,881 915 
VAT and use taxes 267 277
Other accrued liabilities 6,344 1,305
Total 12,555 4,868
In determining the recoverability of a trade receivable the Group 
considers any change in the credit quality of the trade receivable 
from the date credit was initially granted up to the reporting date. 
The concentration of credit risk is limited due to the customer 
base being large and unrelated. Accordingly, management 
believes that there is no further credit provision required in excess 
of the allowance for doubtful debts.
Cash and cash equivalents comprise cash held by the Group and short-term bank deposits with an original maturity of three months or 
less. The carrying amount of these assets approximates their fair value.
The loan guarantee was cash restricted for a loan from a former owner of a subsidiary acquired in 2006. The loan was repaid and on 24 
April 2007 the restrictions were lifted. The Group’s restricted cash also provides a rental guarantee for the lease costs of a subsidiary’s 
facility for an indefinite period.
Trade payables principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for 
trade purchases as at 31 December 2007 is 23 days (2006: 26 days). 
The directors consider that the carrying amount of trade payables approximates to their fair value.
21. Trade and other payables
Restricted cash
The Group’s restricted cash consists of the following:
Cash and cash equivalents
20. Other financial assets (continued) 36        EAG Limited Annual Report and Accounts 2007
22. Deferred revenue
Revenue deferred relating to the Group’s obligations for future service obligations are as follows:
23. Acquisition related liabilities
Details of the Group’s liabilities by acquisition at 31 December 2007 and 2006 are as follows:
Deferred revenue  
US$’000
Balance at 1 January 2006 21
Revenue deferred in respect to service agreements 592
Future service obligations assumed with acquisitions –
Revenue recognised on discharge of obligations (86)
Balance at 1 January 2007 527
Revenue deferred in respect to service agreements 152
Future service obligations assumed with acquisitions 934
Revenue recognised on discharge of obligations (289)
Balance at 31 December 2007 1,324
2007
Directly 
attributable  
costs  
US$’000
Deferred
consideration
due to Sellers
US$’000
Other indirect 
or non-
attributable 
costs  
US$’000
Less
payments
US$’000
Amounts 
due
US$’000
Current
Accurel 174 — 324 (421) 77
MEFAS 297 1,905 — (122) 2,080
DSL Labs, Inc. 166 — — (45) 121
White Mountain Labs, Inc. 157 534 — (3) 688
Sub-total 2007 acquisitions 794 2,439 324 (591) 2,966
Advanced Materials Engineering Research, Inc., AMER-FIB 
and Accessright Consultants, Ltd. — 1,054 — — 1,054
Shiva Technologies, Inc. 410 3,181 397 (569) 3,419
Evans East, Inc. – current portion — 362 — — 362
Total current acquisition liabilities 1,204 7,036 721 (1,160) 7,801
Non-current
MEFAS — 835 — — 835
White Mountain Labs, Inc. — 231 — — 231
Total non-current acquisition liabilities — 1,066 — — 1,066
Total 1,204 8,102 721 (1,160) 8,867 EAG Limited Annual Report and Accounts 2007        37
2006
Directly 
attributable  
costs US$’000
Deferred
consideration
due to Sellers
US$’000
Other
indirect or non-
attributable 
costs US$’000
Less
payments
US$’000
Amounts 
due
US$’000
Current
MEV/Thin Film Analysis — — 542 (512) 30
Applied Microanalysis Labs, Inc. 87 619 240 (246) 700
AMIA Labs Inc. 61 — 20 (30) 51
Advanced Materials Engineering Research, Inc., AMER-FIB 
and Accessright Consultants, Ltd. 3,890 — — (1,535) 2,355
Materials Analytical Services, Inc. 769 — 189 (330) 628
Cascade Scientific Ltd 541 350 — (45) 846
Cascade Scientific GmbH 168 229 — — 397
Shiva Technologies, Inc. 410 — 196 (56) 550
Shiva Technologies Europe SARL 666 — — — 666
Nano Science KK 109 — — (37) 72
Sub-total 2006 acquisitions 6,701 1,198 1,187 (2,791) 6,295
2005 Acquisitions
Evans East, Inc. – current portion — 334 — — 334
Total current acquisition liabilities 6,701 1,532 1,187 (2,791) 6,629
Non-current
Evans East, Inc. — 678 — (316) 362
Advanced Materials Engineering Research, Inc. — 1,000 — — 1,000
Shiva Technologies, Inc. — 3,000 — — 3,000
Total non-current acquisition liabilities — 4,678 — (316) 4,362
TOTAL 6,701 6,210 1,187 (3,107) 10,991
 
Deferred consideration for Micro Electronics 
Failure Analysis Services, Inc. 
EAG LLC has an outstanding obligation to pay Jon Gergen, 
Mahmood Homayounieh and the other shareholders of Micro 
Electronics Failure Analysis Services, Inc. (“MEFAS”) deferred 
consideration of $2,740,000 less the amount of any buyer warranty 
claims made by EAG LLC, pursuant to the terms of the joint 
indemnification agreement entered into in connection with 
the purchase of MEFAS on 8 November 2007. Fifty percent of 
the consideration is payable on the earlier of 15 April 2008 or 10 
business days after issuance of the audited financial statements 
for the year ended 31 December 2007. The other fifty percent of 
the consideration is payable on the earlier of 15 April 2009 or 10 
business days after issuance of the audited financial statements for 
the year ending 31 December 2008. Jon Gergen and Mahmood 
Homayounieh are employees of EAG LLC who commenced their 
service on 8 November 2007.
Deferred consideration for White Mountain 
Labs, L.L.C. 
EAG LLC has an outstanding obligation to pay Brenda McCaffrey 
and the other shareholders of White Mountain Labs, L.L.C (“WML”) 
deferred consideration of $765,000 less the amount of any buyer 
warranty claims made by EAG LLC, pursuant to the terms of the 
joint indemnification agreement entered into in connection 
with the purchase of WML on 6 December 2007. Fifty percent of 
the consideration is payable on the earlier of 15 April 2008 or 10 
business days after issuance of the audited financial statements 
for the year ending 31 December 2007. The other fifty percent of 
the consideration is payable on the earlier of 15 April 2009 or 10 
business days after issuance of the audited financial statements of 
EAG LLC for the year ended 31 December 2008. Brenda McCaffrey 
was an employee of EAG LLC at 31 December 2007  
who commenced her service on 6 December 2007.
23. Acquisition related liabilities (continued) 38        EAG Limited Annual Report and Accounts 2007
Deferred consideration for Evans East general 
partnership interest.
Evans Analytical Group LLC (“EAG LLC”) has an outstanding 
obligation to pay to Evans East, Inc. (“EEI”), a corporation wholly-
owned by Bill Harrington and Charles Magee, comprising deferred 
consideration of $1,150,000 pursuant to the terms of the asset 
purchase agreement for the purchase of EEI’s interest in the Evans 
East general partnership on 2 September 2005. This deferred 
consideration is payable in three equal installments of $383,333 on 
2 September of 2006, 2007 and 2008. Bill Harrington is a consultant 
to EAG LLC and Charles Magee is an employee of EAG LLC, and 
they both commenced their service on 2 September 2005. This 
liability was recorded at net present value of the contractual 
payments with interest imputed at 7.7%.
Deferred consideration for Applied Materials 
Engineering Research, Inc., AMER-FIB, Inc.  
and Accessright Consultants Limited
EAG LLC has an outstanding obligation to pay to Dr. Peiching 
Ling and Harry Kawayoshi and the other shareholders of 
Applied Materials Engineering Research, Inc., AMER-FIB, Inc., and 
Accessright Consultants Limited (the “AMER Companies”), deferred 
consideration of $1,000,000, plus simple fixed interest at 5% per 
annum, less the amount of any buyer warranty claims made by 
EAG LLC, pursuant to the terms of the share purchase agreement 
for the acquisition of the AMER Companies on 30 November 2006. 
This deferred consideration is payable 10 days after issuance of 
the audited financial statements of the Company for the year 
ended 31 December 2007. Dr. Peiching Ling and Harry Kawayoshi 
are employees of EAG LLC who commenced their service on 30 
November 2006.
Deferred consideration for Shiva Technologies, 
Inc. and Shiva Technologies Europe SARL
EAG LLC has an outstanding obligation to pay to Krishna Chivukula 
and the other shareholders of Shiva Technologies Europe, SARL, 
(together with Shiva Technologies Europe SARL, the “Shiva 
Companies”), and to Chamundi, Inc., a corporation majority-
owned by Krishna Chivukula deferred consideration of $3,000,000, 
plus simple interest at the rate of 6% per annum, less the amount 
of any buyer warranty claims made by EAG LLC, pursuant to the 
terms of the joint indemnification agreement entered into in 
connection with the purchase of the Shiva Companies on 29 
December 2006. This deferred consideration is payable on the 
earlier of 30 April 2008 or 10 days after issuance of the audited 
financial statements of EAG LLC for the year ended 31 December 
2007. Krishna Chivukula was not a related party of the Group as of 
31 December 2006; however, on 3 June 2007 he was appointed to 
the board of directors of EAG Limited.
Deferred consideration for Applied  
Microanalysis Labs, Inc.
At December 31, 2006, EAG LLC had an outstanding obligation 
to pay to Applied Microanalysis Labs, Inc. (“AML”), a corporation 
wholly-owned by Dr. Yumin Gao, deferred consideration of 
$607,750, plus interest at the one-year U.S. treasury constant 
maturity rate, less the amount of any warranty claims made by 
EAG LLC pursuant to the terms of the asset purchase agreement 
for the purchase of substantially all of the trade and assets of AML 
on 23 August 2006 by EAG LLC. This deferred consideration was 
paid in full on 5 April 2007. Dr. Yumin Gao is an employee of EAG 
LLC who commenced his service on 23 August 2006.
Deferred consideration for Cascade Scientific 
Limited and Cascade Scientific GmbH
At December 31, 2006, EAG LLC had an outstanding obligation to 
pay to Sukanta Biswas, Ian Kelly, Neil Montgomery, Hektor Hebert, 
Bernd Bock, Oscar Hess, Marc Bujor and the other shareholders 
of Cascade Scientific Limited and Cascade Scientific GmbH (the 
“Cascade Companies”), deferred consideration of $350,000 and 
$229,000, less the amount of any buyer warranty claims made by 
EAG LLC, pursuant to the terms of the share purchase agreement 
for the purchase of the Cascade Companies on 22 December 
2006. This deferred consideration was paid in full on October 2007. 
Sukanta Biswas, Ian Kelly, Neil Montgomery, Hektor Hebert, Bernd 
Bock, Oscar Hess, and Marc Bujor are and have remained  
employees of the Cascade Companies since the acquisition of 
these companies by EAG LLC on 22 December 2006.
24. Borrowings
Current Non-Current
Loans from Related Parties: (see note 43)
2007
US$’000
 unaudited  
2006
 US$’000
2007
US$’000
unaudited  
2006
US$’000
Secured – at amortised cost:
Revolving credit line (i) — — — 2,064
Senior secured term A notes (ii) — 8,497 — 68,314
Senior subordinated notes (iii) — — — 24,780
Sub-total Senior secured & subordinated notes (ii) — 8,497 — 95,158
Convertible note – debt portion (see note 26) — — — 3,534
Total — 8,497 — 98,692
23. Acquisition related liabilities (continued) EAG Limited Annual Report and Accounts 2007        39
(i)  The revolving loan facility with ACAS was secured by the 
Group’s eligible trade receivables. Interest was payable monthly  
at a rate of LIBOR plus 400 basis points (9.35% at 31 December 
2006). The revolving loan facility matured on 1 September 2010. 
The available line of credit at 31 December 2006 was $3,800,000. 
The revolving loan facility was repaid and terminated on 7 
September 2007.
(ii)  The senior secured term A notes were payable to ACAS 
and secured by substantially all of the U.S. assets of the Group. 
Interest was payable monthly at a rate of LIBOR plus 400 basis 
points (9.35% at 31 December 2006). Monthly payments included 
scheduled principal payments and interest at a rate of LIBOR  
plus 400 basis points. The loan balance was repaid in full on  
29 June 2007.
(iii)  The senior subordinated notes were payable to ACAS and 
secured by substantially all of the U.S. assets of the Group. The 
notes bore interest at a rate of 16% per annum and were payable 
in two components: (a) A monthly interest payment is due in 
cash on the outstanding principal balance (as increased from 
time to time by paid in kind (“PIK”) interest) at a rate equal to 12% 
per annum and (b) interest that was payable in kind (and thereby 
increases) the outstanding principal amount of the notes at a rate 
of 4% per annum. The notes and PIK interest were repaid in full on 
29 June 2007.
(iv)  The $15 million revolving credit line facility with Royal Bank 
of Scotland (RBS) is guaranteed by subsidiaries representing more 
than 85% of the assets and earnings of the Group. The principal 
and interest are payable at the end of each interest period. The  
Company has the option to rollover the principal to a new interest 
period. Before each draw, the Company selects the interest period 
of one, three, or six months. The annual interest rate is LIBOR plus 
150 basis points (6.34% at 31 December 2007). The revolving loan 
facility matures on 13 September 2012. Subsequent to the year 
end, the revolving credit line facility has been renegotiated and 
maintained at $15 million with an annual interest rate of LIBOR plus 
350 basis points (please see note 44).
(v)  The $125 million senior secured term loan with RBS is 
guaranteed by subsidiaries representing more than 85% of the 
assets and earnings of the Group. Interest is payable at the end 
of each interest period. Before each draw, the Company selects 
the interest period of one, three, or six months. The interest rate is 
LIBOR plus 150 basis points (6.34% at 31 December 2007).  
Principal payments of 7.5% of the term loan balance is payable 
every six months. The secured term loan facility matures on 13 
September 2012. Subsequent to the year end, the term loan facility 
has been renegotiated and reduced to $60 million with an annual 
interest rate of LIBOR plus 350 basis points (please see note 44).
Bank loans:
2007
US$’000
 unaudited  
2006
US$’000
Revolving credit line – ACAS — 2,064
Revolving credit line - Facility “B” (iv) 7,259 —
Senior secured notes — 76,81 1
Senior subordinated notes — 24,780
Secured notes, Facility “A” (v) 54,906 —
Total bank loans 62,165 103,655
2007
US$’000
 unaudited  
2006
US$’000
On demand or within one year 16,576 8,497
In the second year 8,550 10,800
In the third to fifth years inclusive 39,900 86,961
After five years — 3,534
Amount due for settlement after 12 months 48,450 101,295
Borrowings repayable exclude unamortised loan fees, which are included in the total borrowings payable balances (2007: $2,861,000; 
2006: $2,603,000). All of the Group’s borrowings at 31 December 2007 and at 31 December 2006 are US$ denominated.
Borrowings are repayable as follows:
24. Borrowings (continued) 40        EAG Limited Annual Report and Accounts 2007
2007
US$’000
 unaudited  
2006
US$’000
Bank loans 6.4% 1 1.9%
2007
US$’000
 unaudited  
2006
US$’000
Fixed rates
Senior subordinated notes — 24,780
Floating rates
Revolving loan facility — 2,064
Senior secured notes — 76,81 1
Revolving credit line - Facility “B” 7,259 —
Secured notes, Facility “A” 54,906 —
2007
US$’000
 unaudited  
2006
US$’000
Debt 62,165 151,255
Cash and cash equivalents (15,054) (9,067)
Net debt 47,1 11 142,188
Equity/deficit 153,734 (28,193)
Net debt to equity ratio 31% (504%)
Facilities “A” and “B” of $60,197,000 were arranged at floating rates, thus exposing the Group to cash flow interest rate risk. The Group 
manages this exposure by monitoring interest rates to determine if changes in its capital structure are appropriate. 
The directors estimate the fair value of the Group’s borrowings as follows:
25. Financial instruments
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising their 
return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of debt, 
which includes the borrowings disclosed in note 24, cash and cash equivalents and equity attributable to equity holders of the parent, 
comprising issued capital, reserves and retained earnings as disclosed in notes 30 – 36.
Gearing ratio
The gearing ratio at the year end is as follows:
Debt is defined as long and short-term borrowings, financing arrangements and other equity related liabilities. Equity includes all capital 
and reserves of the Group attributable to equity holders of the parent.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and 
the basis on which income and expenses are recognised, in respect of each class of financial asset, final liability and equity instrument are 
disclosed in note 3 to the financial statements.
24. Borrowings (continued)
The weighted average interest rates paid were as follows: EAG Limited Annual Report and Accounts 2007        41
Carrying Value
2007
US$’000
 unaudited  
2006
US$’000
Financial assets
Cash and cash equivalents  15,054 9,067
Loans and other receivables 17,846 10,305
Financial liabilities
Amortised cost 62,165 107,189
Foreign currency risk management
The Group undertakes certain transactions denominated in 
foreign currencies which exposes the Group to exchange  
rate fluctuations. To mitigate this risk the Group maintains  
bank accounts denominated in the most common foreign 
currencies traded in to include Euro and Pound Sterling. The 
carrying amounts of the Group’s foreign currency denominated 
monetary assets and monetary liabilities at the reporting date  
are of nominal amounts.
Interest rate risk management
The Group is exposed to interest rate risk as entities in the Group 
borrow funds at both fixed and floating interest rates. The risk 
is managed by the Group by maintaining an appropriate mix 
between fixed and floating rate borrowings. 
The Group’s exposures to interest rates on financial assets and 
financial liabilities are detailed in the liquidity risk management 
section of this note.
Interest rate sensitivity analysis
The sensitivity analysis below has been determined based on 
the exposure to interest rates for non-derivative instruments at 
the balance sheet date. For floating rate liabilities, the analysis is 
prepared assuming the amount of liability outstanding at balance 
sheet date was outstanding for the whole year. A 0.5% increase 
or decrease is used when reporting interest rate risk internally 
to key management personnel and represents management’s 
assessment of the reasonably possible change in interest rates.
If the interest rates had been 0.5% higher/lower and all other 
variables were held constant, the Group’s profit for the year ended 
31 December 2007 would decrease/increase by $323,000 (2006: 
decrease/increase by $446,000). This is mainly attributable to the 
Group’s exposure to interest rates on its variable rate borrowings.
Credit risk management
Trade receivables consist of a large number of customers, spread 
across diverse industries and geographical areas. Ongoing credit 
evaluation is performed on the financial condition of accounts 
receivable.
The Group does not have any significant credit risk exposure 
to any single counterparty or any group of counterparties having 
similar characteristics. The Group defines counterparties as having 
similar characteristics if they are connected entities. Concentration 
of credit did not exceed 5% of gross monetary assets at any time 
during the year. 
The carrying amount of financial assets recorded in the financial 
statements, which is net of impairment losses, represents the 
Group’s maximum exposure to credit risk without taking account 
of the value of any collateral obtained.
Liquidity risk management
The Group manages liquidity risk by maintaining adequate 
reserves, banking facilities and reserve borrowing facilities by 
continuously monitoring forecast and actual cash flows and 
matching the maturity profiles of financial assets and liabilities. 
Included in note 24 is a description of additional un-drawn 
facilities that the Group has its disposal to further reduce liquidity 
risk. Please also see note 44 for subsequent changes to the credit 
facilities agreement.
Liquidity and interest risk tables
The following tables detail the Group’s remaining contractual 
maturity for its non-derivative financial liabilities. The tables have been 
drawn up based on the undiscounted cash flows of financial liabilities 
based on the earliest date on which the Group can be required to pay. 
The table includes both interest and principal cash flows.
Categories of financial instruments
25. Financial instruments (continued) 42        EAG Limited Annual Report and Accounts 2007
Weighted 
average
effective 
interest 
rate %
Less than 
1 month
US$’000
1–3 months
US$’000
3 months 
to 1 year
US$’000
1–5 years
US$’000
5+ years
US$’000
Total
US$’000
2007
Non-interest bearing — 1,293 — 1,385 1,151 — 3,829
Finance lease liability — — — — — — —
Variable interest rate instruments 6.44%     — 4,275 1 1,775 48,450 — 64,500
Fixed interest rate instruments 5.7 5%     — — 4,000 — — 4,000
   Total 1,293 4,275 1 7,160 49,601 — 72,329
2006 – unaudited 
Non-interest bearing — — — 579 — — 579
Finance lease liability 5.54% — — 645 8 — 653
Variable interest rate instruments 9.35%   — — 10,697 78,584 — 89,281
Fixed interest rate instruments 14.75% — — 1,876 32,314 — 34,190
   Total — — 13,797 110,906 — 124,703
The Group has access to financing facilities, the total unused 
amount of which is $75.5 million at the balance sheet date. The 
Group expects to meet its other obligations from operating cash 
flows and proceeds of maturing financial assets. 
The Group has financial covenants on these facilities for 
leverage, interest cover and cash cover (please see note 44).
The carrying amounts of financial assets and financial 
liabilities recorded at amortised cost in the financial statements 
approximate their fair values.
26. Convertible loan notes
Two convertible loan notes were issued on 29 December 2006 
in conjunction with the acquisition of Shiva Technologies, Inc. 
The notes carried an interest rate of 6% per annum payable 
semi-annually and could be converted into Common Units of the 
Company at the option of the Holder at any time on or after the 
occurrence of a Liquidity Event which was defined as:
 a sale of substantially all the assets of the Company; •	
 the liquidation or dissolution of the Company; •	
 a sale of 50% or more of the equity interests in the Company; or •	
 an IPO of equity interests in the Company. •	
In accordance with the above terms, the notes were converted 
into an equity interest in the Company on 26 June 2007 as part of 
the IPO.
The net proceeds received from the issue of the convertible 
loan notes were split between the liability element and an equity 
component, representing the fair value of the embedded option 
to convert the liability into equity of the Group, as follows:
2007
US$’000
 unaudited 
2006
US$’000
Nominal value of convertible loan notes issued — 4,900
Equity component — (1,366)
Liability component at date of issue — 3,534
Interest charged 146 —
Interest paid 146 —
Liability component at 31 December 2006 — 3,534
25. Financial Instruments (continued) EAG Limited Annual Report and Accounts 2007        43
Property, 
plant & 
equiment
US$’000
Intangibles
US$’000
Employee 
benefits
US$’000
Provisions
US$’000
Tax losses
US$’000
Other
US$’000
Total
US$’000
At 1 January 2006 — — — — — — —
(Charge)/credit to income — — — — — — —
On acquisition of subsidiary (452) (2,264) 413 — — (103) (2,406)
At 1 January 2007 (452) (2,264) 413 — — (103) (2,406)
(Charge)/credit to income (5,561) 9 (274) 1,482 1,910 1,142 (1,292)
On acquisition of subsidiary (802) (5,898) — 121 2,179 — (4,400)
At 31 December 2007 (6,815) (8,153) 139 1,603 4,089 1,039 (8,098)
The interest charged for the period is calculated by applying an 
interest rate of 6% to the nominal value of the convertible loan 
notes issued plus accrued and unpaid interest.
The directors estimated the fair value of the liability component 
of the convertible loan notes at 31 December 2006 to be 
approximately $3,534,000. This fair value was calculated by 
discounting the future cash flows at the market rate.
At the balance sheet date, the Group has unused tax losses of  
$10 million available for offset against future profits. These relate to 
Group operations within the United States and a deferred tax asset 
has been recognised in respect of all of these losses.  
At the balance sheet date, the aggregate amount of temporary 
differences associated with undistributed earnings of subsidiaries 
for which deferred tax liabilities have not been recognised was 
$7.98 million (2006: $nil). No liability has been recognised in 
respect of these differences because the Group is in a position 
to control the timing of the reversal of the temporary differences 
and it is probable that such differences will not reverse in the 
foreseeable future.
A deferred tax asset of $5.1 million in respect of  
future tax amortisation available over a 15 year period  
has not been recognised in the financial statements.
2007
US$’000
 unaudited 
2006
US$’000
Deferred tax assets 7,009 449
Deferred tax liabilities (15,107) (2,855)
Total (8,098) (2,406)
27 . Deferred tax assets and liabilities  
Recognised deferred tax assets and liabilities
The following are the major deferred tax liabilities and assets recognised by the Group during the current and prior periods.  
Also, movements thereon during the current period:
Movement in temporary differences during 2007:
26. Convertible loan notes (continued) 44        EAG Limited Annual Report and Accounts 2007
28. Obligations under finance leases
Minimum  
lease payments
Present value 
of lease payments
2007 
US $’000
unaudited 
2006 
US $’000
2007 
US $’000
unaudited 
2006 
US $’000
Amounts payable under finance leases:
Within one year — 645 — 631
In the second to fifth years inclusive — 8 — 8
After five years — — — —
— 653 — 639
Less: future finance charges — (14) n/a n/a
Present value of lease obligations — 639
Less: Amount due for settlement within 12 months — (631)
Amount due for settlement after 12 months — 8
For the year ended 31 December 2007, the Group does not 
have any obligations under finance lease. For the year ended 31 
December 2006, the average lease term of all obligations under 
capital lease was 30 months and the average effective borrowing 
rate was 5.54%. Interest rates were fixed at the contract date. All 
leases are on a fixed repayment basis and no arrangements have 
been entered into for contingent rental payments. All leases were 
acquired as parts of business combinations that were entered into 
during the year ended 31 December 2006. 
The lease obligations are denominated in sterling and euros.
The fair value of the Group’s lease obligations approximates 
their carrying amount.
The Group’s obligations under finance leases are secured by the 
lessors’ rights over the leased assets.
29. Other financial liabilities
The Group financed property and casualty insurance liabilities 
under a short-term financing agreement in 2006. The balance 
outstanding under this agreement was $nil as of 31 December 
2007 (2006: $215,000). The short-term agreement financed 
$352,000 and was repayable in eight equal monthly payments in 
the amount of $44,000 including scheduled principal payments 
and interest based on an effective interest rate of 6.25%. The 
insurance coverage is for the period of 2 September 2006 through 
2 September 2007. Payments began on 2 November 2006 and 
were completed on 2 June 2007.
2007
US$’000
 unaudited  
2006
US$’000
Other financial liabilities — 215 EAG Limited Annual Report and Accounts 2007        45
30. Share capital
31. Share premium account
32. Equity reserve – Predecessor Company
EAG was incorporated on 22 March 2007 and registered in Jersey 
(registered number 96298) as a private company limited by shares 
under the name EAG Limited. On 21 May 2007, EAG was re-
registered in Jersey as a public company. 
The Company has one class of ordinary shares which carry no 
right to fixed income.
On 2 June 2007 EAG issued 419,287 Ordinary Shares to an 
individual investor for an aggregate subscription of £1,000,000. 
On 20 June 2007, an agreement was entered into between and 
among EAG Finance (Ireland) Limited, ACAS and Team EAG 
whereby EAG Finance (Ireland) Limited acquired from ACAS and 
Team EAG their respective existing equity and preferred interests 
in the Predecessor Company. The acquisition was conditional 
on EAG’s admission to AIM. The consideration payable by EAG 
Finance (Ireland) Limited in this transaction was £51.0 million.
On 20 June 2007, a distribution agreement and a contribution 
agreement were entered into whereby the entire issued share 
capitals of each of Cascade Scientific Limited, Cascade Scientific 
GmbH, Nano Science KK, Shiva Technologies Europe SAS, and 
Accessright Consultants Limited were acquired by EAG indirectly 
from the Predecessor Company. The acquisition was conditional 
on EAG’s Admission to AIM. The consideration payable by EAG 
was satisfied through the issuance of 19,189,557 Ordinary Shares, 
credited as fully paid.
On 26 June 2007 , EAG completed its flotation on the AIM market 
of the London Stock Exchange. Admission to AIM was a condition 
precedent to EAG (and its wholly-owned subsidiary EAG Finance 
(Ireland) Limited) acquiring all of the former operating entities of  
 the Predecessor Company, as described above. As a result, all  
of the Predecessor Company’s equity interests (consisting of 
Common Units, Preferred Units, warrants and the convertible note 
– equity portion) are no longer outstanding. As of 30 June 2007 , the 
outstanding equity instruments of EAG Limited are Ordinary Shares 
and options on Ordinary Shares.
In the AIM flotation, EAG issued 47 ,132,198 Ordinary Shares at an 
issuance price of 265 pence. Of the shares issued, 30,000,000 were 
issued to fund EAG and were used primarily to repay indebtedness. 
The remaining 17 ,132,198 Ordinary Shares issued were to fund the 
acquisition of the equity interests of certain existing shareholders of 
the Predecessor Company, including all of the interests of ACAS.
2007
US$’000
 unaudited 
2006
US$’000
Authorised
150 million ordinary shares of 1 pence 3,009 —
Issued and fully paid
67 million ordinary shares of 1 pence 1,339 —
Share premium
US$’000
Balance at 1 January and 31 December 2006 —
Premium arising on issue of equity shares 271,423
Expenses of issue of equity shares (1 7,820)
Balance at 31 December 2007 253,603
Equity Reserve
US$’000
Balance at 1 January 2006 —
Recognition of equity component of convertible loan notes (see note 26) 1,366
Balance at 1 January 2007 1,366
Exchange convertible note for equity interest 3,534
Redeemed for interest in EAG Limited (4,900)
Balance at 31 December 2007 —
This reserve represents the equity component of convertible debt instruments (see note 26). 46        EAG Limited Annual Report and Accounts 2007
33. Preferred units – Predecessor Company
Preferred units US$’000
Balance at 1 January 2006 4,818
Preferred units issued 1,640
Dividends paid in kind to equity owners 437
Balance at 31 December 2006 6,895
Preferred units issued 238
Dividends paid in kind to equity owners 249
Units redeemed at IPO (7 ,382)
Balance at 31 December 2007 (see note 11) —
34. Capital redemption reserve
On 26 June 2007, EAG issued 47,132,198 Ordinary Shares, of which 17,132,198 Ordinary Shares were issued to fund the acquisition of the 
equity interests of certain existing shareholders of the Predecessor Company. The “capital redemption reserve” represents the acquisition 
value of such equity interests. 
Capital redemption Reserve US$’000
Balance at 1 January 2006 and 31 December 2006 —
Common units redeemed 104,899
Balance at 31 December 2007 104,899
35. Translation reserve
The translation reserve represents exchange differences arising on the translation of non-monetary items in respect of which gains and 
losses are recognised directly in equity.
Translation Reserve US$’000
EAG Holdings, LLC
   Balance at 1 January 2006 1
   Exchange differences on translation of overseas operations (2)
   Balance at 1 January 2007 (1)
   Exchange differences on translation of overseas operations for the period ended 26 June 2007 194
   Consolidate reserves with EAG Limited (193)
   Balance at 31 December 2007 —
EAG Limited
   Balance at 1 January 2007 —
   Consolidate reserves with EAG Holdings, LLC 193
   Exchange differences on translation of overseas operations 1,628
   Balance at 31 December 2007 1,821 EAG Limited Annual Report and Accounts 2007        47
36. Retained earnings
Retained earnings US$’000
EAG Holdings, LLC
   Balance at 1 January 2006 (600)
   Dividends paid in kind (437)
   Net loss for the year (35,416)
   Balance at 1 January 2007 (36,453)
   Gain on rescission of put options 135,679
   Gain on redemption of preferred units 836
   Redemption of paid-in-kind equity 1,907
   Net loss for the period ended 26 June 2007 (102,549)
   Paid in kind dividend (249)
   Consolidate reserves with EAG Limited 829
   Balance at 31 December 2007 —
EAG Limited
   Balance at 1 January 2007 —
   Consolidate reserves with EAG Holdings, LLC (829)
   Net loss for the period ended 31 December 2007 (1,771)
   Share based compensation 762
   Dividends paid (2,624)
   Balance at 31 December 2007 (4,462) 48        EAG Limited Annual Report and Accounts 2007
37 . Acquisition of subsidiaries
Acquisition of Accurel Systems  
International Corp. 
On 1 May 2007 the Group acquired the operations and assets 
of Accurel Systems International Corporation (Accurel) for 
consideration of $12,697,000 from Implant Sciences Corporation 
(IMX) of Wakefield, MA. The enterprise value of Accurel was 
$14,602,000. Accurel is a leading provider of advanced failure 
analysis, microscopy and focused ion beam circuit edit services. 
This acquisition has been accounted for using the purchase 
method of accounting.
The goodwill arising on the acquisition of Accurel is attributable 
to the anticipated profitability of the distribution of the Group’s 
products in the new markets and the anticipated future operating 
synergies from the combination. The intangible assets acquired 
include customer base, non-compete agreements and trade 
name. Customer base and non-compete agreements were valued 
by an independent third party based upon revenue models using 
discounted future cash flows. Trade-name was valued under a 
relief of royalty methodology.
The operations of Accurel were fully integrated into an existing 
EAG site and services were performed utilising both Accurel and 
existing EAG instruments and personnel. Therefore, the Group is 
unable to ascertain the revenue and gross profit before tax for  
the period between the date of acquisition and the balance  
sheet date.
If the acquisition of Accurel had been completed on the first day 
of the financial year, Accurel would have contributed approximately 
an additional $2,985,000 to the Group revenues and approximately 
$1,134,000 to the Group earnings before interest, taxes, depreciation 
and amortisation. 
 The fair value of net assets acquired is provisional with respect 
to the value of the fixed assets acquired and directly attributable 
costs pending resolution of seller representations and warranties. 
Amendments may be made to these figures in the subsequent 
accounting period with a corresponding adjustment to goodwill. 
The Group has a holdback claim against the previous owners in 
respect to representations and warranties. 
EAG filed a civil action in California state court against the 
former President of Accurel Systems International Corporation 
alleging, among other things, fraud, breach of contract, unfair 
competition, misappropriation of confidential information and 
interference with contractual relations. EAG filed a separate but 
related civil action in California state court against Accurel Systems 
International Corporation and its parent corporation, Implant 
Sciences Corporation relating to their sale of Accurel’s assets to  
the Group. Discovery is currently underway in both actions.
The Group continues to evaluate the revenue-generating 
capacity of specific test equipment acquired through use in 
the post-acquisition period, and expects to have finalised these 
evaluations no later than June 2008.
Book Value  
$’000
Fair Value
Adjustments  
$’000
Fair Value  
$’000
Net assets acquired
Intangible assets — 7,460 7,460
Property, plant and equipment 4,257 (549) 3,708
Other non-current assets 2 — 2
Trade and other receivables 1,025 — 1,025
Services in process 22 — 22
Trade and other payables (884) — (884)
Lease obligations (1,905) — (1,905)
Deferred revenue (146) — (146)
 Total net assets 2,371 6,91 1 9,282
Goodwill 3,415
Total consideration 12,697 
Satisfied by:
Cash paid to seller and deposited into an escrow account 
on the seller's behalf at close 12,523
Directly attributable costs 174
 Total 12,697
Net cash flow arising on acquisition
Cash consideration 12,523
 Total 12,523 EAG Limited Annual Report and Accounts 2007        49
Book Value  
$’000
Fair Value
Adjustments  
$’000
Fair Value  
$’000
Net assets acquired
Intangible assets — 9,200 9,200
Property, plant and equipment 10,156 1,064 1 1,220
Other non-current assets 49 — 49 
Trade and other receivables 1,178 — 1,178
Debt paid on seller’s behalf at close (5,647) — (5,647)
Trade and other payables (3,136) — (3,136)
Deferred revenue (788) — (788)
 Total net assets 1,812 10,264 12,076
Goodwill 16,706
Total consideration 28,782
Satisfied by:
Cash paid to sellers 25,745
Deferred consideration 2,740
Directly attributable costs 297
 Total 28,782
Net cash flow arising on acquisition
Cash consideration 25,793
Cash and cash equivalents acquired (48)
Total 25,745
Acquisition of MEFAS
On 9 November 2007 the Group acquired 100% of the share 
capital of Micro Electronic Failure Analysis Services, Inc. (MEFAS) 
for consideration of $28,782,000. The enterprise value of MEFAS 
was $34,429,000. MEFAS is a leading provider of microelectronics 
testing, qualification, and characterisation, including reliability 
qualification testing, electrostatic discharge and latch-up testing, 
focused ion beam circuit edit capabilities, and device and system 
level failure analysis. This acquisition has been accounted for using 
the purchase method of accounting.
The goodwill arising on the acquisition of MEFAS is attributable 
to the anticipated profitability of the distribution of the Group’s 
products in the new markets and the anticipated future operating 
synergies from the combination. The intangible assets acquired 
include customer base, non-compete agreements and trade  
name. Customer base and non-compete agreements were valued 
by an independent third party based upon revenue models using 
discounted future cash flows. Trade-name was valued under a 
relief of royalty methodology.
The acquisition of MEFAS occurred on 9 November 2007. As 
a result of the acquisition, Group revenues in 2007 were higher 
by approximately $1.1 million and earnings before interest, 
taxes, depreciation and amortisation in 2007 were higher by 
approximately $0.5 million. If the acquisition of MEFAS had been 
completed on the first day of the financial year, MEFAS would have 
contributed approximately an additional $7,194,000 to the Group 
revenues and approximately $1,887,000 to the Group earnings 
before interest, taxes, depreciation and amortisation. 
The fair value of net assets acquired is provisional due to the 
timing of the acquisition. Amendments may be made to these 
figures in the subsequent accounting period with a corresponding 
adjustment to goodwill. The Group continues to evaluate the 
revenue-generating capacity of specific test equipment acquired 
through use in the post-acquisition period, and expects to have 
finalised these evaluations no later than December 2008.
37 . Acquisition of subsidiaries (continued) 50        EAG Limited Annual Report and Accounts 2007
Book Value  
$’000
Fair Value
Adjustments  
$’000
Fair Value  
$’000
Net assets acquired
Intangible assets — 3,600 3,600
Property, plant and equipment 8,966 (37) 8,929
Deferred tax asset 40 1,970 2,010
Other non-current assets 1 1 1 — 1 1 1
Trade and other receivables 1,793 (206) 1,587
Services in process 23 — 23
Debt and sellers’ costs paid on seller’s behalf at close (8,6 11 ) — (8,6 11 )
Trade and other payables (3,447) — (3,447)
Deferred tax liability (3,664) (3,664)
Deferred revenue (123) (123)
Total net assets (1,248) 1,663 415
Goodwill 13,692
Total consideration 14,107
Satisfied by:
Cash paid to seller and deposited into an escrow account 
on the seller's behalf at close, net of cash assumed 13,941
Directly attributable costs 166
 Total 14,107
Net cash flow arising on acquisition
Cash consideration 13,945
Cash and cash equivalents acquired (4)
 Total 13,941
The goodwill arising on the acquisition of DSL is attributable to the 
anticipated profitability of the distribution of the Group’s products 
in the new markets and the anticipated future operating synergies 
from the combination. The intangible assets acquired include 
technology, customer base, non-compete agreements and trade 
name. Technology, customer base and non-compete agreements 
were valued by an independent third party based upon revenue 
models using discounted future cash flows. Trade-name was 
valued under a relief of royalty methodology.
The acquisition of DSL occurred on 26 November 2007 . As a result of 
the acquisition, Group revenues in 2007 were higher by approximately 
$1.1 million and earnings before interest, taxes, depreciation and 
amortisation in 2007 were higher by approximately $0.1 million. If 
the acquisition of DSL had been completed on the first day of the 
financial year, DSL would have contributed approximately an additional 
$10,349,000 to the Group revenues and approximately $nil to the Group 
earnings before interest, taxes, depreciation and amortisation. 
The fair value of net assets acquired is provisional due  
to the timing of the acquisition. Amendments may be made 
to these figures in the subsequent accounting period with a 
corresponding adjustment to good-will. The Group continues 
to evaluate the revenue-generating capacity of specific test 
equipment and in-tangibles assets acquired through use in  
the post-acquisition period, and expects to have finalised  
these evaluations no later than December 2008. 
Acquisition of DSL Labs
On 26 November 2007 the Group acquired 100% of the share 
capital of DSL Labs Inc. (DSL) for consideration of $14,107,000. The 
enterprise value of DSL was $22,718,000. DSL is a leading provider 
of microelectronics FA/RTP services, including automated testing, 
reliability and qualification testing, failure analysis and probe 
card design. DSL also provides complementary test engineering 
services, such as test program development, program conversion 
and optimisation, wafer sort and final test production. In addition, 
DSL is a major provider of reliability and qualification testing 
services, helping fabless semiconductor companies ensure proper 
integrated circuit design, package assembly and device integrity 
by performing electrical stress, thermal stress and mechanical 
stress tests to identify the occurrence of failures and their severity. 
This acquisition has been accounted for using the purchase 
method of accounting.
37 . Acquisition of subsidiaries (continued) EAG Limited Annual Report and Accounts 2007        51
37 . Acquisition of subsidiaries (continued)
Acquisition of White Mountain labs
On 6 December 2007 the Group acquired 100% of the share 
capital of White Mountain Labs LLC (WML) for consideration of 
$3,584,000. The enterprise value of WML was $7,590,000. WML 
is a leading provider of electrostatic discharge and latch-up 
testing, a key set of RTP/FA services used in testing the reliability 
of integrated circuits and qualifying them for final volume 
production. WML has 17 employees and is located in Phoenix, 
Arizona. This acquisition has been accounted for using the 
purchase method of accounting.
Book Value  
$’000
Fair Value
Adjustments  
$’000
Fair Value  
$’000
Net assets acquired
Intangible assets — 1,412 1,412
Property, plant and equipment 2,673 474 3,147
Other non-current assets 10 — 10
Trade and other receivables 228 (1 1 ) 217
Services in process — — —
Trade and other payables (226) — (226)
Debt paid on seller's behalf at close (4,006) — (4,006)
Lease obligations — — —
Deferred revenue — — —
 Total net assets (1,321) 1,875 554
Goodwill 3,030
Total consideration 3,584
Satisfied by:
Cash paid to sellers, net of cash received 2,662
Deferred consideration 765
Directly attributable costs 157
Total 3,584
Net cash flow arising on acquisition
Cash consideration 2,768
Cash and cash equivalents acquired (106)
Total 2,662
The goodwill arising on the acquisition of WML is attributable 
to the anticipated profitability of the distribution of the Group’s 
products in the new markets and the anticipated future operating 
synergies from the combination. The intangible assets acquired 
include software, customer base, non-compete agreements 
and trade name. Software, customer base and non-compete 
agreements were valued by an independent third party based 
upon revenue models using discounted future cash flows.  
Trade-name was valued under a relief of royalty methodology.
The acquisition of WML occurred on 7 December 2007. As a 
result of the acquisition, Group revenues in 2007 were higher 
by approximately $0.2 million and earnings before interest, 
taxes, depreciation and amortisation in 2007 were higher by 
approximately approximately $0.1 million. If the acquisition of WML 
had been completed on the first day of the financial year, WML 
would have contributed approximately an additional $2,373,000  
to the Group revenues and approximately $326,000 to the Group 
earnings before interest, taxes, depreciation and amortisation. 
The fair value of net assets acquired is provisional due to the 
timing of the acquisition. Amendments may be made to these 
figures in the subsequent accounting period with a corresponding 
adjustment to goodwill. The Group continues to evaluate the 
revenue-generating capacity of specific test equipment acquired 
through use in the post-acquisition period, and expects to have 
finalised these evaluations no later than December 2008. 52        EAG Limited Annual Report and Accounts 2007
38. Notes to the cash flow statement
Year ended
31 Dec 2007
US$’000
unaudited
Year ended
31 Dec 2006
US$’000
Net Debt
Net debt beginning of year (142,188) (30,163)
Net increase in cash and cash equivalents 5,987 8,444
Net decrease/(increase) in long-term loans 46,685 (72,162)
Net increase in revolving lines of credit (5,195) (7,893)
Net payments on finance leases 640 —
Finance leases assumed with acquisitions — (640)
Net decrease /(increase) in other financing arrangements 215 (215)
Net decrease/(increase) in put option liability 35,433 (35,433)
Net decrease/(increase) in redeemable preferred units 7,778 (592)
Other non-cash movements
Debt portion of convertible note issued in  
acquisitions; converted to equity 3,534 (3,534)
Net debt end of year (47,1 11 ) (142,188)
Net debt comprises:
Cash and equivalents 15,054 9,067
Revolving line of credit (7,259) (2,064)
Bank term loans (54,906) (101,591)
Finance lease obligations — (640)
Convertible note — (3,534)
Warrant put option liability — (35,433)
Redeemable preferred units — (7,778)
Other financing arrangements — (215)
At 31 December (47,1 11 ) (142,188)
Supplemental non-cash disclosures
During 2006 a large customer of the Group decided to close the 
X-Ray Photoelectron Spectroscopy (“XPS”) section of their internal 
lab and outsource their analysis work. The Group entered into 
a contract with this customer to perform a total of $551,000 of 
future services for this customer at our list price in exchange for 
ownership of the customer’s XPS instrument. The Group recorded 
this transaction as deferred revenue of $551,000 for future services 
and capitalised the instrument in the amount of $551,000. As the 
Group does not offer significant discounts, this approximates the 
fair value of the services to be provided.
39. Contingent liabilities
The Predecessor Company acquired the assets of Shiva 
Technologies, Inc., a Syracuse NY based lab, on 29 December 2006 
from Shiva Technologies, Inc. and Krishna Chivukula (‘‘Sellers’’). 
In the course of installing the Predecessor Company’s laboratory 
management and accounting software, it was discovered that 
during the period from November 2004 to February 2007, a 
number of jobs analysing copper had been performed for a 
mining company partially owned by the Government of Myanmar. 
Myanmar is subject to certain trade restrictions under various 
US laws, and it is possible that performing the jobs violated such 
restrictions. The substantial majority of this work was performed 
by Shiva prior to the Predecessor Company’s acquisition of its 
assets. Under the purchase agreement (a) the Predecessor  
Company did not assume liabilities relating to the period prior  
to the Predecessor Company’s acquisition of the assets and (b)  
the Sellers have subsequently indemnified the Predecessor 
Company against any losses it might incur for such unassumed 
liabilities. The Predecessor Company and the Sellers have signed 
a letter in which they agree, among other things, that the 
substantial majority of costs and liabilities associated with this 
matter are accordingly the responsibility of the Sellers. The Sellers 
and the Predecessor Company have jointly instructed counsel 
to advise on this matter and have made a joint disclosure of the 
facts to the relevant authorities. While the process may take many 
months to finally resolve with the relevant government agencies, 
the Directors are confident that the final outcome will not be 
material to the financial position of the Group. EAG Limited Annual Report and Accounts 2007        53
40. Commitments
a)  Operating lease commitments 
The Group as lessee
At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable 
operating leases, which fall due as follows:
Operating lease payments represent rentals payable by the 
Group for certain of its office properties and rentals related to 
office equipment. Lease terms for office properties range from 
three to ten years and average 59 months. Lease terms for office 
equipment rentals range from three to five years and average 49 
months. The Group provides for flexibility in negotiating lease 
terms to respond to local office rental market conditions.
b)  Capital commitments 
At year end the Company had capital commitments to complete 
the building acquired with MEFAS. Estimated completion costs 
were $297,000.
41. Share based payments
The Company has a share option scheme (the “Plan”) open to 
employees and third parties. Under the Plan, 2,567,500 share 
options were granted on 26 June 2007 at an option price of £2.65. 
No equity instruments other than these share options were issued 
in exchange for the fair value of goods or services received. There 
were no modifications to share-based payment arrangements 
during the periods presented.
In accordance with IFRS 2: Share based payments, the fair 
value of services received in return for share options granted to 
employees and a consultant performing services similar to those 
performed by employees, is measured based on the Black-Scholes 
formula, a financial model used to calculate the fair value of share-
based payments. 
During the twelve months ended 31 December 2007, the  
Group recognised an expense of $755,000 in respect of share 
options granted. As these were the first share options granted  
by EAG Limited, there was no charge for share-based payments  
in prior periods. 
The general terms and conditions of the share options granted are 
that they have a five year term from date of grant, vest rateably at a 
rate of 25% per year over four years, are not subject to performance 
conditions, and are to be settled in equity. One award, granted to 
one employee only, vested 50% upon grant with 25% vesting at the 
end of years three and four of the service period. Other terms and 
conditions of this grant are identical to all other grants. The share 
options were granted at an option price of £2.65, which was the fair 
value of EAG Ordinary Shares on the date of the grant.
Details of the share options outstanding during the year are  
as follows.
2007
US$’000
unaudited  
2006
US$’000
Minimum lease payments under operating leases recognised  
as an expense in the period
3,082 1,892
Number of share options
Weighted average
exercise price (GBP)
Outstanding at the beginning of the period — —
Granted during the period 2,567,500 2.65
Forfeited during the period (432,500) 2.65 
Exercised during the period — —
Expired during the period — —
Outstanding at the end of the period 2,135,000 2.65
2007
US$’000
unaudited 
2006
US$’000
Within one year 3,845 4,579
In the second to fifth years inclusive 7,389 1 1,792
After five years 1,163 2,562
Total 12,397 18,933
2007 Number and weighted average exercise prices of share options 54        EAG Limited Annual Report and Accounts 2007
The fair value of the share options granted was determined by 
reference to the fair value of the equity instruments granted,  
using the following input assumptions in the Black Scholes  
option pricing model:
 All options outstanding have an exercise price of  •	
£2.65 per option
 Management expects Ordinary Share dividend yield of  •	
1.5% per year
 The employees and consultant who received the share  •	
options are relatively homogeneous for purposes of  
valuing their share options
 Cancellations due to termination of employment is  •	
estimated to be 5% per year
 The expected life of the shares vesting at each vesting  •	
date is as follows:
 Vested at grant – 2.5 year life
 Vesting at the end of the first year – 3 year life
 Vesting at the end of the second year – 3.5 year life
 Vesting at the end of the third year – 4 year life
 Vesting at the end of the fourth year – 4.5 year life
 Volatility is determined by averaging the historical annual  •	
share price volatility for four public companies considered 
 to be reasonable peers of the Group and for the FTSE AIM  
100 index of the top 100 companies traded on the AIM  
market of the London Stock Exchange, resulting in a  
volatility assumption of 26%
 The risk free interest rate is determined to be 5.8% based on •	
the yield on a UK government treasury bond with a maturity 
matching the expected life of the share options granted.
 The fair value calculations in pounds sterling were translated to •	
dollars based on the spot ex-change rate at the grant date of 
1.9997 US dollars to the pound sterling.
Based on these assumptions the fair value per share option is 
determined to be:
The fair value of the share options granted is being recognised 
over the vesting periods in which the option holders are 
performing services for the Group. Using the assumptions 
described above, the Group determined the fair value of the  
share options granted over the life of the options is $2,997,000.  
Of this amount, the total expense recognised for the year ended 
31 December 2007 arising from share-based payment transactions 
in which the goods or services received did not qualify for 
recognition as assets and hence were recognised immediately as 
an expense is $155,000. The fair value of the share options granted 
which has not yet been recognised as expense is $1,723,000 and 
will be recognised as services are rendered over the remaining 
vesting period, which expire on 25 June 2012.
42. Retirement benefit schemes
Defined contribution plans
The Group operates defined contribution retirement benefit 
plans for all qualifying employees in its subsidiaries in the US and 
worldwide. The assets of the plans, with the exception of Japan, 
are held separately from those of the Group in funds under the 
control of trustees. Where employees leave the plans prior to full 
vesting of the contributions, the contributions payable by the 
Group are reduced by the amount of forfeited contributions. The 
pension plan adopted by a newly acquired subsidiary in Japan 
provides for payments to employees based upon their salary 
and length of service with the Company. A liability of $1,018,000 
was assumed at 29 December 2006 as part of the acquisition 
agreement, of which $818,000 was subsequently paid to  
two retiring former owners in January 2007.
The total expenses recognised in the income statement  
of $480,000 (2006: $185,000) represents contributions payable 
to these plans by the Group at rates specified by the rules of the 
plans. As of 31 December 2007, contributions of $19,000 and (2006: 
$3,000) had not been paid over to the plans. The amounts were 
paid subsequent to the balance sheet date.
Vesting Period (years)
Option Value per Share 
(in USD)
0 1.080 
1 1.180 
2 1.300 
3 1.380 
4 1.400 
41. Share based payments (continued) EAG Limited Annual Report and Accounts 2007        55
43. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not 
disclosed in this note. Transactions between the Group and its affiliates are disclosed below. 
Operating expenses
Related party balances
2007
US$’000
unaudited
2006
US$’000
Auriga Partners :
Management fees 75 155
American Capital Strategies, Ltd.:
Management fees 147 300
Financing fees for new borrowings 242 1,994
Structuring fees 2,225 —
Interest 6,125 3,684
Peter O’Dwyer:
Management fees 29 —
Dr. Peiching Ling (employee and partial owner of building  
leased in China):
Rental 265 22
Year ended  
31 Dec2007  
US$’000
unaudited 
Inception  
to 31 Dec 2006  
US$’000
American Capital Strategies, Ltd.
Borrowings (see note 24):
Revolving credit line — 2,200
Senior secured and subordinated notes — 104,058
Due from affiliates:
TEAM EAG LLC – state tax and registration fees 205 7
EAG MCIP LLC – state tax and registration fees — 2
EAG Member Corp. – state tax and registration fees — 3
Total due from affiliates 205 12 56        EAG Limited Annual Report and Accounts 2007
Related Party – Auriga Partners, Inc.
The Company paid management fees to Auriga Partners, Inc.  
(see Note 7).
Related Party – American Capital Strategies,  
Ltd. (“ACAS”)
The Company paid ACAS management fees (see Note 12) as 
well as interest and principal on the Company’s borrowings (see 
Note 24). Additionally, in connection with ACAS providing debt 
financing to the Company, the Company paid financing fees to 
ACAS equal to 2% of the amount of each debt financing, totaling 
fees of $451,000 (2006: $1,994,000). ACAS and its affiliates held  
all of the outstanding preferred stock of EAG Member Corp., 
which in turn held approximately 55% of the Company’s 
outstanding preferred units and warrants to acquire common 
units until 26 June 2007, the reorganization date.
Related Party – Peter O’Dwyer
The Company has paid approximately $29,000 to Peter O’Dwyer 
for combined professional services and management of EAG 
Finance (Ireland) Limited. Peter O’Dwyer is a Director of the Group
Related Party – Dr. Peiching Ling
The Group leases a building in China that is partially owned by 
Dr. Peiching Ling. The lease is for a period of five years ending 
November 2011. Net annual rent is in the amount of $248,000 
per year. Dr. Peiching Ling is an employee of the Group and 
was a selling shareholder of AMER, AMER-FIB, and Accessright 
Consultants Limited.
Related Party – Team EAG LLC
The Group has paid approximately $195,000 of minimum franchise 
taxes, registration fees and tax return preparation expenses on 
behalf of Team EAG LLC in 2007 (2006; $7 ,000), for which it owes 
reimbursement to the Company. Investors in Team EAG LLC 
consist primarily of Company employees and directors but also 
include individual outside investors. Team EAG LLC held all of the 
Company’s outstanding common units and held approximately 
45% of the Company’s outstanding preferred units and warrants to 
acquire common units until the date of reorganization, 26 June 2007 .
Related Party – EAG MCIP LLC
The Company has paid approximately $2,000 of minimum 
franchise taxes, registration fees and tax return preparation 
expenses on behalf of EAG MCIP LLC in 2006. Senior management 
and employees of the Group hold all of the equity of EAG MCIP 
LLC. EAG MCIP LLC held a 20% contingent interest in the Company 
until the date of reorganization, 26 June 2007.
Related Party – EAG Member Corp
The Company has paid approximately $3,000 of minimum 
franchise taxes, registration fees and tax return preparation 
expenses on behalf of EAG Member Corp, for which it owes 
reimbursement to the Company. EAG Member Corp held 
approximately 55% of the Company’s outstanding preferred 
units and warrants to acquire common units until the date of the 
reorganization, 26 June 2007.
Related party – Brooklawn Real Estate, LLC
The Group leases a facility from Brooklawn Real Estate, LLC, an 
entity in which two children of Krishna Chivukula each own a 25% 
interest. Krishna Chivukula, was previously majority shareholder 
of The Shiva Group, the two principal operations of which – Shiva 
Technologies, Inc. and Shiva Technologies Europe SARL – were 
acquired by the Group in December 2006 (see note 30). Krishna 
Chivukula was appointed a director of EAG Limited on 3 June 2007.
The lease is for a period of ten years commencing 1 July 2005 and 
ending on 30 June 2015. Net annual rent is in the amount of $98,004 
per year for the three-year period from 1 July 2005 through 30 June 
2008 and fluctuates in the lease years commencing 1 July 2008 
based on the Consumer Price Index.
The Group is responsible for rent, annual real estate taxes to the 
extent that real estate taxes exceed $18,000 during the period of 
the lease, utility costs, and casualty and general liability insurance 
coverage. The Group is also responsible for maintaining the property 
and making all necessary non-structural repairs. The Group may 
sublease the property during the period of the lease upon giving 
proper notice to the Landlord. The Group is not required to make a 
security deposit on this lease. The lease obligations were assumed by 
the Group with effect from 29 December 2006 as part of the Shiva 
Technologies, Inc. acquisition. No lease payments were made by the 
Group to Brooklawn Real Estate, LLC between 29 December 2006 and 
31 December 2006.
44. Subsequent events
Since the year end the Company renegotiated terms with RBS in 
relation to its revolving credit line facility and senior secured loan.  
The key elements of these renegotiated terms were as follows:
a)   A reduction of the commitment on the senior secured loan 
facility from $125m to $60m; 
b)   An increase in the interest rate on both the senior secured loan 
facility and revolving credit line facility to LIBOR + 350 basis points;
c)  Amendments to covenants; and
d)  Bank agreement will be required for future acquisitions.
43. Related party transactions (continued) EAG Limited Annual Report and Accounts 2007        57
EAG LIMITED INCOME STATEMENT
For the period from 22 March to 31 December 2007
2007 
$’000
Operating income
Dividends from subsidiaries 2,002
Management charges 2,058
Total income 4,060
Administrative expenses 2,058
Operating profit 2,002
Interest revenue 157
Profit before tax 2,159
Tax (110)
Net profit attributable to equity holders of EAG Limited 2,049
EAG LIMITED STATEMENT OF 
CHANGES IN Eq UITY
For the period from 22 March to 31 December 2007
2007 
$’000
Balance at beginning of the period —
Net profit for the year 2,049
Dividends paid (2,624)
Increase in share capital, net of issuance costs 254,942
Share based compensation 762
Balance at end of the period 255,129
Equity comprises share capital, share premium, equity reserve and retained earnings. 58        EAG Limited Annual Report and Accounts 2007
EAG LIMITED BALANCE SHEET
At 31 December 2007
Notes
31 Dec 
2007 
US$’000
Non-current assets
Investments in subsidiary - EAG Finance 6 246,511
Total non-current assets 246,511
Current assets
Loans to other Group entities 11,123
Cash and cash equivalents 477
Total current assets 11,600
Total assets 258,111
Current liabilities
Loans from other Group entities 585
Trade and other payables 7 2,287
Tax liabilities 110
Total current liabilities 2,982
Net current assets 8,618
Net assets 255,129 
Equity
Share capital 9 1,339
Share premium account 10 253,603
Retained earnings 1 1 187
Total equity 255,129
 
The financial statements were approved by the board of directors 
and authorised for issue on 30 March 2008. 
They were signed on its behalf by:
David A. Lahar 
Director EAG Limited Annual Report and Accounts 2007        59
EAG LIMITED CASH FLOW  
STATEMENT
For the period from 22 March 2007 to 31 December 2007
2007 
$’000
Operating profit 2,002
Net change in working capital (2,002)
Cash generated from operations —
Investing activities
Interest received 157
Payments to acquire subsidiaries (226,402)
Net cash used in investing activities (226,245)
Financing activities: 
Non-trading loans to subsidiaries (8,273)
Proceeds from IPO 252,594
IPO related costs (1 7,599)
Net cash from financing activities 226,722
Net increase in cash and cash equivalents 477
Cash and cash equivalents at beginning of period —
Cash and cash equivalents at end of period 477 60        EAG Limited Annual Report and Accounts 2007
1. Significant accounting policies
The separate financial statements of EAG Limited are presented 
as required by the Companies (Jersey) Law 1991. As permitted by 
that Act, the separate financial statements have been prepared in 
accordance with International Financial Reporting Standards (“IFRS”).
The financial statements have been prepared on the historical 
cost basis. The principal accounting policies adopted are the same 
as those set out in note 2 to the Group financial statements except 
as noted below.
Investments in subsidiaries are stated at cost less, where 
appropriate, provisions for impairment.
2. Operating profit
The auditors’ remuneration for audit and other services is 
disclosed in note 9 to the consolidated financial statements.
3. Interest revenue
Period ended 
31 Dec 2007 
$.000
Bank deposits 157
All interest revenue has been earned on EAG Limited’s loans and 
receivables category of financial assets.
4. Tax
Period ended 
31 Dec 2007 
$.000
Current tax 1 10
 
Corporate tax is calculated at 12.5 percent (of the estimated 
assessable profit for the period. The charge for the period can be 
reconciled to the profit per income statement as follows:
Period ended 
31 Dec 2007 
US$’000
Profit before tax 2,159
Tax at the current period rate of 12.5% 270
Reconciliation of effective tax rate
   Income taxable at higher rate of tax 20
   Franked Investment Income (180)
Total 1 10
 
5. Financial assets
Loans from other Group entities
At the balance sheet date amounts receivable from the fellow 
Group companies of $11.1 million USD.  The carrying amount of 
these assets approximates their fair value. There are no past due  
or impaired receivable balances.
Cash and cash equivalents
These comprise cash held by EAG Limited and short-term bank 
deposits with an original maturity of three months or less. The 
carrying amount of these assets approximates their fair value.
6. Investments in subsidiaries
Period ended 
31 Dec 2007 
US$’000
Balance at beginning of period —
Capital contribution to subsidiary 246,51 1
Balance at end of period 246,51 1
Please see note 3 of the Group financial statements for additional 
information on principal subsidiary undertakings.
7 . Trade and other payables
Period ended 
31 Dec 2007 
US$’000
Accrued accounting and audit expenses 742
IPO related costs 221
Other accrued liabilities 1,324
Total trade and other payables 2,287
8. Financial liabilities
Trade and other payables
Trade payables principally comprise amount outstanding for 
operating and ongoing costs. The carrying amount of trade 
payables approximates to their fair value. 
NOTES TO EAG LIMITED  
FINANCIAL STATEMENTS
For the period from 22 March 2007 to 31 December 2007 EAG Limited Annual Report and Accounts 2007        61
9. Share Capital
2007 
US$’000
Authorised:
150 million ordinary shares of 1 pence 3,009
Issued and fully paid:
67 million ordinary shares of 1 pence 1,339
For additional details see note 30 of the Group financial 
statements.
10. Share Premium
Share premium
2007
US$’000
Balance at beginning of period —
Premium arising on issue of equity shares 271,423
Expenses of issue of equity shares (1 7,820)
Balance at 31 December 2007 253,603
1 1. Equity Reserves
Retained earnings
2007
US$’000
Balance at beginning of period —
Net profit for the period 2,049
Share-based payments 762
Dividends paid (2,624)
Balance at 31 December 2007 187
12. Related parties
EAG Limited has the following loans receivable from subsidiaries:
Period 
ended 
31 Dec 2007 
US$’000
Loans to other Group entities 
–  EAG Finance (Ireland) Limited 8,970
–  EAG Holdings (Japan) KK- Nano Science KK 33
–  Evans Taiwan, LLC 2
–  EAG China- Accessright Consultants Ltd. 18
–  EAG Holdings (UK) Limited- Cascade Scientific Ltd 41
–  EAG Germany GmbH- Cascade Scientific GmbH 23
–  EAG Shiva Technology Europe SAS 57
–  EAG US Inc. 1,906
–  EAG Holdings LLC 72
Total loans to other Group entities 1 1,1 22
Loans from other Group entities 
 - EAG LLC 585
Total loans from other Group entities 585
Amounts repayable from subsidiaries are short term and non-
interest bearing.
Other transactions with related parties include management 
charges for services provided to the subsidiary companies and the 
receipt of dividends from subsidiaries, as disclosed on the face of 
the income statement. 62        EAG Limited Annual Report and Accounts 2007 62        EAG Limited Annual Report 2008
DIRECTORS, COMPANY SECRETARY 
AND ADVISERS
Board of Directors
Ian R. Johnson, Chairman *
David A. Lahar, Chief Executive Officer
Krishna Chivukula *
Jim C. Cowart *
Dennis Millard *
Peter O’Dwyer *
Michael A. Stevens *
* Non-executive Director
Secretary
Dominion Corporate Services Limited 
Dominion Corporate Group 
47 Esplanade 
St Helier 
Jersey JE1 0BD
Registrars
Capita IRG (Jersey) Limited 
PO Box 207, Piermont House 
33/35 Pier Road 
St Helier 
Jersey JE1 1BD
Solicitors to the Company
DLA Piper UK LLP 
Victoria Square House 
Victoria Square 
Birmingham B2 4DL  
Tel: +44 (0)8700 111 111 
Fax: +44 (0)121 262 5794
Solicitors to the Company (Jersey)
Cary Olsen 
47 Esplanade 
St Helier 
Jersey JE1 0BD
Registered Office
47 Esplanade 
St Helier, Jersey JE1 0BD 
Tel: +44 (0) 1534 888 900 
www.eaglabs.com
Registered Number: 96298
ISIN: JE00B1Y95B59
Symbol: EAG
Headquarters
26 Upper Pembroke Street 
Dublin 2 
Ireland 
Tel: +353-1-637-3922 
Fax: +353-1-662-0365
Nominated Adviser
Lazard & Co., Limited 
50 Stratton Street 
London W1J 8LL 
Tel: +44 (0)20 7187 2000 
Fax: +44 (0)20 7072 6000
Broker
Numis Securities Limited 
The London Stock Exchange Building 
10 Paternoster Square 
London EC4M 7LT 
Tel: +44 (0)20 7260 1000 
Fax: +44 (0)20 7260 1010
Auditors
Deloitte & Touche LLP 
London
Financial PR Advisers
Citigate Dewe Rogerson 
3 London Wall Buildings 
London Wall 
London EC2M 5SY 
Tel: +44 (0)20 7638 9571 
Fax: +44 (0)20 7628 3444 EAG Limited Annual Report and Accounts 2007        63
NOTICE OF ANNUAL  
GENERAL MEETING
NOTICE IS HEREBY GIVEN that an Annual General Meeting  
of EAG Limited will be held at the Shelbourne Hotel,  
27 St. Stephen’s Green, Dublin 2, Ireland on Tuesday 27th 
May 2008 at 11:00 am for the following purpose:
Ordinary business
To receive and adopt the audited financial statements for the 1. 
year ended 31 December 2007 together with the Reports of the 
Directors and the Auditors.
To re-appoint Deloitte & Touche LLP as auditors of the Company 2. 
to hold office from the conclusion of the meeting until the 
conclusion of the next meeting at which the accounts are 
laid before the Company, and to authorise the Directors to 
determine their remuneration.
To ratify the appointment of the following Directors of the 3. 
Company:
a. Jim Cowart
b. Krishna Chivukula
c. Ian Johnson
d. David Lahar
e. Dennis Millard
f.  Peter O’Dwyer
g. Michael Stevens
To pass the following resolution as an ordinary resolution of  4. 
the Company:
THAT pursuant to Article 5.1 of the Articles, the directors be and 
are generally and unconditionally authorised to exercise all powers 
of the Company to allot relevant securities (within the meaning of 
section 5.1 of the Articles) up to a maximum amount of 22,247,011 
ordinary shares (which is one third of the issued ordinary share 
capital of the Company) provided that (unless previously revoked, 
varied or renewed) this authority shall expire on the date of the 
next annual general meeting of the Company after the passing of 
this resolution or 15 months from the date of the passing of this 
resolution (whichever is the earlier) save that the Company may 
make an offer or agreement before the expiry of this authority 
which would or might require relevant securities to be allotted 
after such expiry and the directors may allot relevant securities 
pursuant to any such offer or agreement as if the authority 
conferred by this resolution had not expired;
To pass the following resolution as a special resolution of the 5. 
Company conditional upon resolution 4 (above) being passed:
THAT the directors be generally empowered pursuant to Article 
5.6 of the Articles to allot equity securities (within the meaning 
of the Articles) for cash pursuant to the authority conferred by 
resolution 2 above as if Article 5.2.1 of the Articles did not apply to 
such allotment , provided that this power shall be limited to:
a.   the allotment of equity securities in connection with 
an offer (whether by way of a rights issue, open offer or 
otherwise) to holders of ordinary shares in the capital of 
the Company in proportion (as nearly as practicable) to 
the respective numbers of ordinary shares held by them, 
subject to such exclusions or other arrangements as the 
directors may deem necessary or expedient in relation to 
fractional entitlements or any legal or practical problems 
under the laws of any territory or the requirements of any 
regulatory body or stock exchange;
b.   the allotment of equity securities for cash (otherwise  
than pursuant to paragraph 2.1 above) up to an aggregate 
nominal amount of 3,337,052 ordinary shares (which 
is 5 percent of the issued ordinary share capital of the 
Company).
and (unless previously revoked, varied or renewed) shall expire at 
the conclusion of the next annual general meeting of the Company 
after the passing of this resolution or on the date which is 15 months 
after the passing of this resolution (whichever is the earlier), save that 
the Company may make an offer or agreement before the expiry 
of this power which would or might require equity securities to be 
allotted for cash after such expiry and the directors may allot equity 
securities for cash pursuant to any such offer or agreement as if the 
power conferred by this resolution had not expired.
By order of the Board of Directors of EAG Limited
Company Secretary
EAG Limited  
Registered office: 47 Esplanade, St Helier, Jersey JE1 0BD
Incorporated in Jersey under Companies (Jersey) Law 1991  
as amended with number 96298
A proxy form is enclosed with this Notice and instructions for  
its completion and return by post are shown on the form. 64        EAG Limited Annual Report and Accounts 2007
Important Notes
The following notes explain your general rights as a shareholder and 
your right to attend and vote at this Annual General Meeting (“AGM”) 
(or to appoint someone else to vote on your behalf).
A shareholder who is entitled to attend and vote at the EGM 1. 
is entitled to appoint one or more proxies to attend and, on 
a poll, to vote instead of him or her. A proxy need not be a 
shareholder. Appointing a proxy will not prevent a shareholder 
from attending in person and voting at the EGM.
If you return more than one proxy appointment the 2. 
appointment which is received later by the Registrar (as long as 
it is received in any event before the latest time for the receipt of 
proxies) will take precedence.
The appointment of a proxy, and the original or duly certified 3. 
copy of the power of attorney or other authority (if any) under 
which it is signed or authenticated, should be deposited with 
the Company’s Registrar, at the address shown on the proxy 
form, not later than (a) 11.00 am on 22 May 2008, or 48 hours 
before the time for holding any adjourned Meeting or (in 
the case of a poll not taken on the same day as the EGM or 
adjourned Meeting) for the taking of the poll at which it is to be 
used, or (b) lodged using the CREST proxy voting service – see 
Note 7 below.
The following documents are available for inspection during 4. 
normal business hours at the registered office of the Company 
on any business day:
(a) copies of Directors’ service contracts with the Company;
(b)  copies of the Non-Executive Directors’ letters of 
appointment;
(c)  the register of interests of the Directors in the share  
capital of the Company; and
(d)  a copy of the Company’s Memorandum and Articles  
of Association.
The Company, pursuant to regulation 41 of the Uncertified 5. 
Securities Regulations 2001, specifies that only those 
shareholders listed in the register of members of the Company 
as at 8.00 pm on 22 May 2008 (or, if the Meeting is adjourned, 
8.00 pm on the day two days prior to the day fixed for the 
adjourned Meeting) shall be entitled to attend or vote at the 
EGM in respect of the number of shares registered in their name 
at that time. In each case, changes to entries on the register of 
members after such time shall be disregarded in determining 
the rights of any person to attend or vote at the Meeting.
As soon as practicable following the EGM, a summary of the 6. 
business transacted will be available, on written request, from 
the Company Secretary at the Company’s registered office and 
will be posted on the Company’s website.
Electronic proxy appointment 
through CREST
CREST members who wish to appoint a proxy or proxies 7. 
through the CREST electronic proxy appointment service 
may do so for the AGM to be held on 27 May 2008 and any 
adjournment(s) thereof by following the procedures described 
in the CREST Manual.
All messages relating to the appointment of a proxy or an 
instruction to a previously appointed proxy, which are to be 
transmitted through CREST, must be received by Capita IRG 
Registrars (ID – RA10) no later than 8.00 pm on 24 May 2008, or, if 
the Meeting is adjourned, close of business on the day three days 
prior to the day fixed for the adjourned Meeting. Contents
  1 Financial Highlights
  2 Chairman’s Statement
  3 Chief Executive Officer’s Review
  4 Financial Review
  5 Board of Directors
  7 Directors’ Report
  9 Corporate Governance Report
10 Remuneration Report
12  Statement of Directors’ Responsibilities 
13 Independent Auditors’ Report
14 Consolidated Income Statement
15 Consolidated Statement of Recognised Income and Expenses
16 Consolidated Balance Sheet
17 Consolidated Cash Flow Statement
18 Notes to the Consolidated Financial Statements
57 EAG Limited Income Statement
57 EAG Limited Statement of Changes in Equity
58 EAG Limited Balance Sheet
59 EAG Limited Cash Flow Statement
60 Notes to the EAG Limited Financial Statements
62 Directors, Company Secretary and Advisers
63 Notice of Annual General Meeting EAG LIMITED 
EVANS ANALYTICAL GROUP  
Annual Report and 
Accounts 2007
Advancing Technology  
through Leadership in Testing
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Contact information
Headquarters:
26 Upper Pembroke Street
Dublin 2
Ireland
T: +353 1 637 3922
Administrative Offices:
810 Kifer Road
Sunnyvale, CA 94086
United States
T: +1 408 530 3500
www.eaglabs.com