proposed sale of colloqui

Redport A.C.N. 061 559 840
Redport Limited
78 Jolimont St. Victoria 3002, Australia
Tel: +61 3 9650 0922 Fax: +61 3 9654 0788
www.redport.com
20050202 POTENTIAL CONSIDERATION COLLOQUI V6.DOC
Our Ref: 20050202 Potential Consideration Colloqui v6.doc
Date: 02 February, 2005
Redport Limited (ASX:RPT)
ASX Announcement
PROPOSED SALE OF COLLOQUI
The Board of Redport Limited ("Redport") has been working to structure appropriate mechanisms to demerge or
separate Colloqui Pty Ltd (a wholly owned, technology-focused subsidiary of Redport) from Redport so as to
maximise return to Redport on its investment in Colloqui Pty Ltd and enable Redport to identify mining and
exploration opportunities against which funds can be raised and applied.
Redport is pleased to announce that it has entered into an agreement with Mr. Spielrein, Managing Director of
Redport and Colloqui Pty Ltd ("Colloqui"), in relation to a proposal for the purchase of MNGT Pty Ltd ("MNGT"), a
wholly owned subsidiary of Redport which in turns owns Colloqui (which is the sole asset of MNGT) by a company
controlled by Mr. Spielrein, APT Pty Ltd or its nominee (“NewCo”). This agreement is subject to Redport
shareholder approval. The consideration for the sale of Colloqui is outlined below. Subject to certain milestones
being achieved the maximum consideration payable is $1.807 million. Independent expert WHK Corporate
Advisory Limited has advised that the proposed transaction is fair and reasonable.
Over the past four years Colloqui has approached companies such as telecommunications carriers and large
internet service providers on a global basis but has been unsuccessful in completing a sale or license with any
entity with the exception of Comstac Global Corporation in the USA which license is now terminated.
GENERAL MEETING
The Redport Board advise that a General Meeting of Redport shareholders will be held as soon as possible to
consider, and if see fit, approve the sale of MNGT to NewCo. A notice of meeting including the independent
expert’s report will be sent to shareholders shortly.
CONSIDERATION
The potential consideration for the acquisition of the shares in MNGT amounts to $1.807M and is comprised of the
following:
$000's
Total Net Liabilities Assumed * 993
Cash 8
Conditional Payment** 806
Total Consideration $1,807
*Includes an amount of $335,000 due and payable to certain ex-employees on achievement of certain commercialisation milestones.
** Further Payments to be made to Redport on commercialisation or licence of IP after all liabilities paid.