announcement

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MEDIA RELEASE
14 September 2004
MEDIA STATEMENT
RMG Limited, a listed receivables management company, today announced a capital
raising of $6 million by way of the issue of convertible notes. The issue is fully
underwritten by E L & C Baillieu Stockbroking and Cullen Investments Limited.
The first tranche of $2 million will be completed on 7 October 2004 and the second
tranche of $4 million is subject to shareholder approval at a meeting of shareholders
to be convened shortly. The convertible notes have a term of two years and a coupon
of 13.5%. The notes to be issued at 2 cents can be converted into ordinary shares at
any time after 31 October 2005. Unconverted notes will automatically convert to
ordinary shares on 31 October 2006 on a one for one basis.
The capital raised will be used to retire and restructure existing finance facilities and
to provide additional working capital to fund business improvements and growth. The
announcement follows a recent statement by the company that improving the capital
structure remains a priority for the Board.
Concurrent with the announcement of the capital raising, RMG Limited today
announced the appointment of Mr. Don Bourke as Executive Chairman. Mr. Bourke
has 40 years of management and financial experience in Australian, European and
American companies and has been involved in several highly successful turnarounds.
Mr. Bourke is also currently the Chairman of Orbital Engine Corporation and Olex
Cables.
Commenting on his appointment, Mr. Bourke said, “ I look forward to this opportunity
in an industry that offers substantial growth potential. I believe there still exists
significant opportunity for RMG to improve its efficiency and profit as the full benefits
of the consolidation undertaken by RMG in April 2000 are yet to be realised by the
company.”
Following two years with RMG Limited, Mr. Ron Logan the current Managing Director
will pursue a new career opportunity overseas. The Board wishes to acknowledge the
significant effort involved in commencing the turnaround of RMG and wishes Mr.
Logan success in his new endeavours. Mr. Logan will be facilitating a handover period
as part of the succession process.
To strengthen the Executive Team Mr. Neil Giordano will be assuming the position of
General Manager Corporate Development. Mr. Giordano has worked with Mr. Bourke
on turnaround assignments in the past and has over 20 years experience in both line
and project roles.
For further information:
Don Bourke, Chairman
Tel: +61 3 9320 0103