acquires 51pc of torque communications

23 June 2006
Australian Stock Exchange Limited
Companies Announcements Office
4th Floor
20 Bridge Street
SYDNEY NSW 2000
ACQUIRES 51% OF TORQUE COMMUNICATIONS
Swish Group is pleased to announce that it has today entered into an agreement to acquire
51% of the business and assets of Torque Communications which is a reseller of
telecommunications services for Australia Star a division of Commander Communication
Limited, Australia’s largest privately owned telecommunications provider.
The products and services offered by Torque Communications which include telephony,
mobile and fixed, and wireless communications will be combined with the Swish Group’s
existing Swish Interactive Digital Video on Demand (DVOD) and High Speed internet product
for hotels, apartment and other multi-unit developments. This will enable the Company to
deliver a comprehensive triple play service of video, data and voice to those clients. The
combined product offering is expected to greatly enhance the Company’s DVOD sales
pipeline. The new Company will also continue to sell into its existing SME market.
The new business, to be called Swish Torque Communications will earn revenues from a
range of sources including initial sign on fees and trailer commissions and is expected to
increase the Company’s revenues by approximately $2 million per annum and deliver an
EBIT in excess of $350,000 in the 2007 financial year.
The acquisition involves an initial consideration to be paid in cash and shares and a
performance related component based on the performance of the Swish Torque
Communications business in the 2007 and 2008 financial years. The principals of Torque
Communications who have extensive experience in the telecommunications sales industry
with companies including Optus Vision will be joining Swish Group. All current employees of
Torque Communications will also be joining the new company.
Swish Group Managing Director Cary Stynes said “I am delighted to announce the acquisition
of a controlling interest in Torque Communications which has positioned itself well to take
advantage of the significant growth that is taking place in the fixed, mobile and data
communications space. The ability to combine video, data and voice in one offering will
significantly enhance the Company’s DVOD and high speed internet product”
If you require any further information please contact Cary Stynes.
Yours faithfully
CARY P STYNES
Managing Director