30 April 2007AWS Strategic Directions OutlookThe Board of...

30 April 2007
AWS Strategic Directions Outlook
The Board of Australian Waterwise Solutions Limited (ASX: AWS) releases this announcement to provide shareholders with a brief overview of the current position of AWS as well as to provide clarity regarding the intended future direction of the Company. AWS intends to expand upon this announcement in due course as it finalises its future plans and some definitive transactions.
As a starting position, it is the view of the AWS Directors that water management represents the apex of future opportunity for the new, visionary AWS. The Board is committed to both the review and revitalisation of the existing activities within the Company as well as the development of AWS’s strategic and operational settings to vigorously pursue and take advantage of the market dynamics, growth prospects and investment opportunities in the water sector as a whole. The underlying vision of the Board is to grow AWS into the leading enterprise in Australia's rapidly developing water industry.
Since the releases made in early February 2007, the Board and senior management of AWS have addressed a number of issues which has been affecting the financial performance of the Company over the past year. The Directors have also taken steps to rectify some of the serious problems that have hampered the Company during this financial year (refer to ASX Announcement dated 27/4/07) and the Board has instituted appropriate control measures to avoid any repeat of these issues.
Immediate Focus:
In the short term the Board has the following objectives:
• To complete the financial stabilisation of the company.
• To continue and finalise the review of the operations and structure of AWS in order to facilitate the company's return to profitability as soon as possible.

• To facilitate the plans for growth that have been identified by the new Board and Management of the company.
To rectify the problems of the past a number of changes to the management structure of the Company have been made. These changes, along with new appointments to the Board, will allow the company to complete a thorough review of existing operations. As previously announced the Board is assessing a number of offers that have been made for the T & I business on the East Coast, but no decision regarding the sale of all or part of this business has been made at this point. The Board and Management of AWS are focused on the revitalisation of the broader businesses of AWS to maximise value for shareholders and will assess the offers for the T & I business in this context. Any developments regarding T & I will be announced as and when appropriate.
The Board would also like to acknowledge the efforts of its existing staff in maintaining their focus on looking after the company’s clients in what can only be described as difficult times, and now looks forward to engaging clients and staff in the new growth initiatives. AWS will continue to service the consumer sector with an increasingly innovative range of waterwise garden and household products through the well established and highly respected Hugall & Hoile, Turf & Irrigation and RainOne businesses.
Future Direction:
The longer term goals of the management team and Board are driven around the evolution of AWS into a diversified water services business, delivering coherent environmental, social and economic solutions based on innovative technological, operational and infrastructure capabilities. It is with these goals in mind that the Board of AWS has recently appointed a number of new directors whose knowledge and experience relate directly to the development of AWS into a leading Australian water services business. It is anticipated that further senior management appointments will be announced in the short term that will ensure AWS has the skills and capabilities required to implement these plans and develop the existing revenue streams within AWS in a significant way.
The Board anticipates improving the existing AWS business offering by further developing waterwise garden design services, rainwater tanks, greywater reuse systems, water saving reticulation equipment, soil and plant care agents and closed-system water features. The Board is of the view that the existing AWS wholesale and retail businesses provide an excellent opportunity to project waterwise products and solutions into the commercial and retail sectors whilst allowing new business lines to be established to meet the rapidly expanding demands of industry, municipalities and public utilities for assistance in water quality management.
The innovative use of new technology is a major focus on the emerging water industry and AWS intends to focus on treatment systems for water and waste water into both the industrial and agricultural sectors. The extension of these technologies into the municipal sector will focus on remediation of water quality in public water bodies (lakes and rivers) and conservation of increasingly stressed potable water sources through water recycling and reduced wastage to the environment. The Company also intends to focus strongly on treated waste water reuse projects as the underlying irrigation for agri-business activities that are designed to combine commercial viability with positive environmental impact and major water conservation benefits.
With its newly acquired project management capabilities and close commercial links to major sources of capital financing, AWS is now far better positioned to engage with both the government and commercial sectors to develop infrastructure solutions to conserve potable water through the establishment of innovative non-potable water transport, storage, and reuse applications for both industry and agriculture. This expansion of the AWS business model is a critical element to the Company’s future growth in terms of revenue, profitability and market leadership.
Concluding Comments:
There is little doubt that the water industry offers huge opportunity in global terms and is crucial to every aspect of society. Australia faces severe challenges in the conservation and management of limited water resources in highly populated zones, with increasing industrial and agricultural demand competing for diminishing water resources. The Australian water industry is growing rapidly in complexity, scope and importance with no exposure to cyclical or temporary market trends. AWS intends to position itself as the leader in an industry that the AWS Board believes will be characterised by a stable and expanding marketplace that offers an excellent opportunity for significant growth in AWS shareholder value.
If shareholders have any questions regarding this announcement, they should contact Non Executive Director Anthony Lewis on 08 9320 5244.
ENDS