THE HUDDERSFIELD TOWN ASSOCIATION FOOTBALL CLUB LIMITED

CHAIRMAN'S REPORT

ACCOUNTING YEAR TO 31 MAY 2007

I am pleased to present my report on the fourth trading year of the Company.

After the progress made in the previous season it was very disappointing to finish 15th in the Coca Cola League 1.

The Board set out an ambitious target in 2003 to be a top 30 English Club and we are still working hard to achieve this objective.

ON THE FIELD

Our aim at the beginning of the season was for the first team to at least reach the play offs but this level was not achieved despite strengthening the squad in the summer of 2006 and further endeavours in January 2007.

The Reserve Team continued to give an opportunity of football at a senior level to more scholars from our Academy.

We lost the two senior members of the managerial staff during the season when first Terry Yorath, through ill health, and then the team manager Peter Jackson left the Club.The Board thank both of them for their efforts particularly for their help in re-establishing the Club in the period after Administration.

Before a new manager joined us, Gerry Murphy took the role of caretaker manager with John Dungworth promoted from the Academy as first team coach.Gerry has since been appointed as Director of Football Development.We thank Gerry for his outstanding commitment to the Club not only during his time in charge but also for the continuing success of his team at the Academy.Once again youngsters graduated to the first team with a number achieving International honours.

Andy Ritchie joined the Club in April with a strong track record which included taking Barnsley into the Championship.He has settled in well and significantly raised the efficiency of our scouting system and is co-operating with The University of Huddersfield to improve players' all round fitness.

FINANCIAL REVIEW

Income during the year was £3.97m (2006 £5.3m) with the result that the loss for the year was £1,055,094 (2006 profit £61,754).Gate receipts were down from £3.1m the previous season to £2.02m, whereas players' wages were up from £1.56m to £1.64m. The Club did not progress in Cup Competitions this year nor did we achieve our minimum goal of reaching the play-offs which resulted in a loss of the extra revenue and commercial opportunities which these matches bring.Our aim continues to be to maintain the Company's income and infrastructure notwithstanding the level of achievement on the pitch.

I am pleased to be able to confirm that the debts due to former players were cleared during the year, some three years ahead of the original schedule.

COMMERCIAL INCOME INCLUDING TICKET OFFICE

The Commercial departments have been led by Sean Jarvis who joined us as Director of Business Development in September 2006 when Andrew Watson became Vice Chairman.

Our shirt sponsorship with Yorkshire Building Society came to an end however I am delighted to report that our very successful affinity partnership has continued with the Society and continues to grow on an annual basis reaching record levels, which helps our Development Association in raising funds for the Academy.We are also delighted that they, along with five additional sponsors are supporting our important grass roots initiative Fans of the Future.

We are indebted to the many local businesses for their continuing strong and wide ranging support.We are also delighted that our commercial staff have secured a record shirt sponsorship agreement to feature on the kit for the 2007/2008 season.They include title sponsors Casino Red along with Dual Seal Glass (rear of shirt) and recruitment partner Stafflex (shorts).

The box office team continued to provide a high standard of professional service to all our supporters as well as our partners in the stadium, and to national sporting bodies bringing events to the Galpharm.

Our external publicity continues to go from strength to strength and has been coordinated in a first class manner by our media team, headed by Alisdair Straughan who not only controlled the press and public relations but has played a major role in the production of our Centenary books.

The lottery department, working with the Development Association has successfully raised funds, with the help of supporters' groups to finance the Academy and the retail department has successfully launched a new kit at the end of the season manufactured by Mitre, a firm with strong local connections.

The aim for the future particularly as we enter our Centenary Year remains the same - to continue to build a robust commercial infrastructure aimed at serving our supporters whilst maximising revenues.

PROSPECTS

As we move into Huddersfield Town's Centenary Year the Board are determined to give the management and playing staff every opportunity to be in the promotion places at the end of this season.

Now that planning permission is in place, work will shortly start on the building at our dedicated training ground and Academy pitches at Storthes Hall to add to the excellent Academy facilities on Leeds Road.

We have launched Fans of the Future to attract an increasing number of children to matches in addition to 'Sevens Scheme' and those attending our countless school promotions.

Football in the Community, now a registered charity, will move into "The Zone" in December 2007 to provide an extensive range of activities to improve the health, fitness and enjoyment of children and adults while funding an expansion of their already large programme to improve the sporting prowess and interest of youngsters in schools throughout the area.

OUR PEOPLE

It was a pleasure to welcome Ann Hough, our Company Secretary, as a member of the Board in August.

I extend my thanks to my fellow Directors, the football management and coaches, all the playing and office staff at the club and at the Academy for their continuing commitment and support over the year.

Finally, but by no means least, I am grateful to all of our volunteer helpers and all our fans who are so committed to following in the footsteps of those who through the last 99 years have supported this great Club.

Ken Davy

Chairman

30 November 2007