PHI Group Reports FY'09 Financial Results, Announces Shareholder Conference Call

PHI Group, Inc. (OTC Bulletin Board: PHIE; Frankfurt Stock Exchange: PR7, WKN A0RNQV), a company engaged in the development of real estate and mining, consulting and merger and acquisition advisory services, today announced financial results for the fiscal year ended June 30, 2009.

Net revenue from consulting and advisory services for the fiscal year ended June 30, 2009 was $2,006,220, as compared to $3,609,318 for the prior year. The decrease was mainly due to a decrease in the size and scope of merger and acquisition activities during the year.

Total operating expenses for the year ended June 30, 2009 were $1,595,009, compared to $1,658,534 for the prior year. The decrease was primarily due to the decrease in professional services and general and administrative expenses. The company's professional fees decreased to $599,804, as compared to $778,440 in the prior year, mainly due to a 94% decrease in legal fees. The company incurred higher legal fees in the prior year for legal services related to a private equity fund launched by the company and payments as a part of services on behalf of our clients.

Net income from operations for the year was $411,211, as compared to $1,950,784 for the prior year. This was mainly due to a 44% decrease in consulting and advisory revenue and a 3.8% decrease in operating expenses during the current fiscal year. Net loss for the year was $8,322,040, as compared to a net income of $2,359,282 for the year ended June 30, 2008. The company recorded a loss on marketable securities of $4,018,965 compared with a gain of $701,832 for the prior year. The company also recorded a gain on debt settlement of $187,794 compared to $67,719 for the prior year. Interest expenses increased to $586,468 versus $362,536 for the prior year due to new notes payable added in the current period. The company recorded an impairment of marketable securities in the amount of $4,061,715 and that of loan receivables in the amount of $282,148 for the year compared to no impairment recorded for the year ended June 30, 2008. The net loss based on the basic and diluted weighted average number of common shares outstanding was ($0.04) per share versus net income of $0.01 per share for the year ended June 30, 2008.

PHI Group CEO Henry Fahman said, "It should be noted that over 91% of the net loss for FY'09 was due to a loss on marketable securities, primarily as a result of the consolidation between the company and our mining subsidiary as well as the impairment of marketable securities we still own in our client companies, which may have a higher value in the future. Without these items, net loss for the year would have been $241,360.

"Obviously we were disappointed with the financial results. However, in spite of what was a difficult year for the company as well as the rest of the world, we were successful in restructuring PHI Mining Group to become a majority-owned subsidiary of the company and in listing Philand Ranch Limited on the Frankfurt Stock Exchange. Since PHI Group currently owns approximately 83% of PHI Mining Group and 75.40% of PHILand Ranch, we believe these operating entities, together with our consulting, M&A advisory service and other businesses, will create significant long-term value for our patient shareholders," Fahman said.

Management will hold a telephone conference to discuss the company's operating results and update our shareholders on work currently in progress and business prospects. The conference call will last up to one hour.

    Conference Date and Time: Monday, October 19, 2009 at 04:15 PM, EDT

    Dial in number: 1-712-432-0080, Participant Access Code: 551772 followed
    by the number sign.

    About PHI Group, Inc.

PHI Group develops real estate and natural resources, provides M&A advisory and consulting services and invests in special situations. Our company, which enables other companies to go public and raise capital, is developing PHILand Ranch, one of the largest master planned communities in Vietnam. This project will include Pointe 91, and will be a luxury resort and premium residential community in Quang Nam province, central Vietnam (PHILand Ranch Ltd., Frankfurt Stock Exchange: 1P8, WKN A0RPEA, www.philandranch.com). We also engage in mining in Southeast Asia and Haiti (PHIMining Group, Inc Other OTC: PHIG, www.phimining.com). Main URL: www.phiglobal.com.

Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties. Such forward-looking statements are based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected, on the basis of such forward-looking statements.

CONTACT: Henry Fahman, Tel: (714) 843-5455, henry@phiglobal.com

SOURCE PHI Group, Inc.

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