its all over

ASX ANNOUNCEMENT
Media World Communications Ltd (MWC) announced on 8 September 2004 that it
was waiting to receive a further report on the Adams Platform Technology (APT)
from its technology team.
Background to report
As previously advised, the board of MWC had requested its technology team to
provide a report on:
· the status of the Windows and Linux implementations of APT and its current
performance capabilities;
· the performance capabilities of the Macintosh implementation of APT as
observed by the technical team.
The results of that interim report confirmed that the implementations of APT in
Windows and Linux were incomplete and had not produced results that matched
those described in the report by the Tolly Group contained in the prospectus issued
by the company on 6 April 2004.
Further, the observation of the performance of APT in the Macintosh environment in
terms of file size and image quality was significantly below the performance
described in the Tolly Group report.
The observation of APT in the Macintosh environment comprised a number of video
encoding and play back demonstrations by the inventor of APT and executive
director of MWC, Mr Adam Clark. The technical team observed and documented
what they had seen in the demonstrations. During the demonstrations a number of
anomalies were observed by the technology team which were reported to the acting
CEO of MWC, Mr John Tatoulis.
Mr Tatoulis requested that the technology team document these anomalies in a
further report to the board of MWC. That report was provided to the board of MWC
today. The technology team has not undertaken a review or verification of APT.
Findings of report
The report of the technology team highlights a number of anomalies which they
observed during demonstrations of APT in a Macintosh environment conducted by
Adam Clark. These anomalies include:
· Mr Clark told the technology team that he had written source code for a new
codec for APT using an application known as ResEdit. A codec is a
compressor/decompressor that forms the basis of a compression
technology. The technology team has reviewed documentation about
ResEdit which states that the program has no ability to write or compile
source code.
· When the technology team removed the APT codec from the client
computer after a demonstration of APT and then restarted the computer, the
APT video file still played. This is not supposed to happen under normal
circumstances.
· The codec said to be the APT codec had what looked to the technology
team like the exact characteristics of a commercially available encoder
called On2_VP3.
In addition, the report states that the performance of APT using the codec said to be
the APT codec was below that achieved using commercially available codecs.
Board meeting
Mr John Tatoulis raised the anomalies outlined in the report with Adam Clark at a
meeting of the board of MWC held this afternoon. Mr Clark requested further time to
consider the report before responding to the matters raised.
Action by MWC
MWC has taken the following action following receipt of the report:
· Adam Clark's consultancy arrangement with MWC has been terminated with
immediate effect;
· Adam Clark and his father, Graeme Clark, have been asked to resign from
the board of MWC; and
· a copy of the report has been forwarded to ASIC.
The board intends to investigate all legal options available to it in the circumstances
to seek compensation for shareholders.
As a consequence of the above, MWC is not currently in a position to pursue its
relisting on ASX.
A further announcement will be made to shareholders as soon as the board is in a
position to do so.
Michael Ramsden
Chairman
20 September 2004