melbourne

$20 million Melbourne Settlement Payment due to ERG Subsidiary

The ERG Group today announced the third and final payment has become due
to its subsidiary, OneLink Transit Systems, under the terms of the
Melbourne scope creep settlement announced on 30 May 2002. The
settlement allowed a final payment of
$20 million to be made to OneLink Transit Systems on demonstration of
improved availability standards of the Melbourne automated ticketing
system for public transport passengers. OneLink has achieved these
standards with a comfortable margin, giving rise to the payment and
concluding all aspects of the settlement.

A lump sum payment of $5 million was made to OneLink today, with $3.3
million of the proceeds flowing directly through to ERG. The remaining
$15 million will be paid progressively to OneLink over the remaining
term of the contract that expires in March 2007. Approximately $6
million of these funds will flow directly to ERG. These payments are in
addition to the $2.85 million increased maintenance payment due to ERG
each year and commencing from 30 May 2002.

The payment is the third instalment of a $65 million staged settlement
reached between OneLink and the Victorian Government for all outstanding
claims in relation to the Melbourne automated ticketing system. The
first payment of $25 million was paid on announcement of the settlement
terms in May 2002, and the second instalment of $20 million was paid on
signing of the contracts in October 2002.