re: annoucement read again boys MELBOURNE: 14th December,...

re: annoucement read again boys MELBOURNE: 14th December, 2006
SHAREHOLDER UPDATE: NEWSAT STRATEGIES
ARE DELIVERING

Recent share price developments have prompted our Board to review the recent achievements of the Company and its market perception, as it now develops into one of the leading satellite service providers to Government, multi-nationals and small business around the world.

I am pleased to announce that recurring revenue from the NewSat Services division recorded an increase of 70% in the first quarter of this financial year relative to the same period last year. By comparison, industry growth for the 12 months was 6 percent.

All indicators suggest revenue for the second half of the year to June 2007 will grow by an additional 50%. Further, the satellite business has generated positive EBITDA over the six months to December 2006 due to the strong sales performances.

Management continue to contain expenses in an environment of strong revenue growth. At the recent AGM, shareholders were reminded that NewSat had successfully achieved all its goals for the 2006 calendar year:
• sold MTD subsidiary
• sold AirWORKS Media subsidiary
• integrated its teleport assets acquisition
• continued its “No Debt” policy
• changed its name (to NewSat Limited)
• implemented a new strategic/financial plan
• completed installation and deployment of automated billing system and, most importantly, transformed the satellite business to be cash flow positive.

The provision of multiple business solutions, via multiple satellites, through multiple technologies, to multiple customers, courtesy of our world class assets, technology and staffing, is an advantage that will deliver consistent financial results, based on recurrent
contracted revenues, year in, year out.

The multiple solutions include point of sale advertising, remote training, business television, business continuity services as well as “triple play” (voice, video, data), on
land and at sea. With access to multiple satellites owned by the two largest operators worldwide: SES New Skies and Intelsat, as well as smaller operators such as Apstar and Space Systems Loral and multiple technologies from the world’s leading manufacturers; ViaSat, iDirect, Shiron,Hughes, Gilat and ComTech, NewSat is truly a full service provider.

The value of the teleport assets is much more than simply land and book value. The NewSat Adelaide and Perth Teleports’ design, location and capacity present the basis for added future recurrent revenue growth.

Not a month goes by at NewSat without visits from International Defence Agencies, military organisations and satellite owners looking for opportunities to co-locate infrastructure or utilise NewSat’s existing assets to access their satellites. The NewSat business is not easily replicated.

Recently the company also launched a world first…MPEG-4 streaming IP Television over satellite. This leading edge technology enables the most cost-effective satellite connectivity for the vast and growing Point of Sale Video Market. More specifically Business TV, Educational TV and Digital Signage sectors will benefit from this new technology. NewSat’s more cost-efficient content delivery provides new market opportunities.

In addition, NewSat has signed a partnership with Linowave in Dubai to extend services into WiFi 4G, the next generation of wireless communications.

We have also established an innovative partnership agreement for provision of satellite services with MyNetFone, Australia’s leading VoIP service provider. We will continue to promote this relationship both here and overseas as well as establish other similar relationships which maximise the opportunities NewSat holds in its teleports and technology.

What separates our company from many others is its recurring revenue base, and its ability to pitch for and win deals ranging from $5,000 to $200 million. Defence is
a prime example of where we are targeting recurring revenue. NewSat will work vigorously to wrest satellite defence business into Australian hands.

The Company’s “bread and butter” revenue is derived from the oil, gas and the mining industry. Recognising the strong growth in these sectors, NewSat has opened two new sales offices, one in Perth and one in south east Queensland to deliver improved sales and service to the resource giants.
In addition, we have recently announced new investment in an antenna located at our Perth facility. The deployment of this 4.5 metre dish which communicates with the satellite Apstar IIR, located over the Indian Ocean, provides new communication links for the resources sector working in the North West Shelf and Africa. Substantial and numerous new contracts have already been established.

We have developed innovative products, including the MVS and TVS range of mobile antennas, especially for the mining and extractive industries and anticipate continued growth in line with this buoyant primary business segment.

Your Company has turned the corner and is poised to deliver on the Boards strategy. 2007 will be an exciting year as we demonstrate that an Australian company compete and defeat the foreign interests which for years have dominated our Satellite landscape.

ADRIAN BALLINTINE
Chief Executive Officer
NewSat Limited
For further information:
Media Enquiries: Adrian Ballintine, Founder and CEO, NewSat Limited:
Shareholder Enquiries: James Kellett, Company Secretary, NewSat Limited