++++++++++++++++++++++++"AGREEMENT TO DELIVER MORE THAN $3...

++++++++++++++++++++++++
"AGREEMENT TO DELIVER MORE THAN $3 MILLION IN REVENUE IN FIRST YEAR"

NEW DSL ENTRANT WILL BENEFIT FROM ANALYSTS PREDICTION OF HIGH GROWTH
IN BROADBAND XDSL MARKET WITH OVER 200,000 NEW SUBSCRIBERS THIS
CALENDER YEAR.

Leading specialist xDSL products supplier Quadtel Ltd. (ASX: QTL), is
pleased to advise shareholders that ihug, a leading Australian ISP
has chosen Quadtel to supply and manage the Installation logistics of
the new ADSL products launched by ihug this week.

Quadtel will supply a range of ADSL products and logistic services to
ihug including the world leading xDSL Alcatel technology to the
customers of ihug. This brings to 3 the number of strategic
partnerships Quadtel have formed with leading ISP's in the ADSL field
outside of less formal relationships with 7 other ISP's.

"It is good news for Quadtel and good news for the ADSL playing field
that ihug have decided to enter the game - they have made some very
aggressive forecasts and looking at the plans they are promoting they
are well on the way to a successful entry in the ADSL scene" said
Bruce Ind CEO of Quadtel Limited.

ihug are forecasting to connect at least 15,000 home users and 5,000
SME users over the next 12 months and they have already recorded
30,000 enquiries from existing and potential customers.

"Quadtel offered ihug an all in one solution for Modems, Filters,
Installation and Logistics - by taking this away from us we can
concentrate soley on providing our customers the best service
available on the market today. We believe that Quadtel will play a
valuable role in our first 12 months and in ensuring that we meet our
forecast figures" said Ben Foote, Marketing Manager of ihug.

"We expect this will add up to 3 million to our revenues over the
next 12 months and of course we are confident of iHug achieving their
forecasts given the growth within the ADSL market as evidenced by
todays news that ADSL has drawn level with cable in Australia and is
set to accelerate past cable in terms of subscriber numbers going
forward" said Bruce Ind.

Quadtel are currently the exclusive supplier of ADSL modems to
Ozemail and are the Preferred Supplier to iPrimus. The agreement with
ihug is consistent with both the business plan of the company and the
position Quadtel currently maintains within the ADSL space.


FOR FURTHER INFORMATION CONTACT:

Denis Orrock, Ben Foote
Quadtel Limited Marketing Manager
Tel: +61 2 8852 4600 Ihug
E-mail: [email protected] Tel: +61 2 9324-