--what they are saying

KEY POINTS FROM A BROKERS REVIEW
! Data & Internet Solutions in Australia including ISDN have an estimated market of
A$6 billion. Our revenue forecasts during 2004-2006 for Multiemedia reflect market shares
of 2% - 8% with 1 satellite transponder in 2004 rising to 3 transponders in 2006.
! The satellite hub & terminal equipment infrastructure will be provided by USA-based ViaSat
to Multiemedia. ViaSat are up to be 5x faster with bandwidth downlink speed compared
with the competitors (Hughes & Gilat). In Australia Optus the satellite fleet operator
provides hub & terminal equipment using a maximum one spot beam compared with 6 by
Multiemedia’s satellite NSS6.
! In FY2004 the rapid deal flow from Multiemedia’s superiority is expected to generate
operating revenues of A$100m including 70% from space & end user equipment.
Multiemedia commence commercial satellite operations on October 1, 2003 with a 5-year
contract to increase from 1 to 3 transponders. Each transponder generates A$100m of
revenues at current prices.
! We value Multiemedia @ 10-15x FY2004 earnings forecast at A$34m implying a valuation of
A$340-510m representing 37-56c per share using current issued capital of 910m securities.
We have assumed a dividend payout ratio of 25% if the business plan is realized.
! Investors will receive clear signals of Multiemedia’s emerging broadband superiority
through Australian Government Agencies’ preference for Multiemedia’s services for new
business contracts. Head-to-head bidding against Optus is currently raging for broadband
contracts.