CAG - Announcement

24 October 2002
by Ron Wise, Chairman
Cape Range Wireless Ltd (Company) is pleased to advise shareholders that it has completed agreements with 100% of the Convertible Noteholders. As a result the Company has cancelled the entitlements issue proposed in the prospectus dated 1 October 2002 (and supplemented by a supplementary prospectus dated 15 October 2002) (Entitlements Issue).

Further the Company advises that the investor has advanced loan funds of US$3 million, so as to allow the Company to repay the $4 million of Notes and to provide working capital.

The Company has repaid 100% of the Noteholders in full and has agreed to make a further payment equal to 20% of the face value of each note to holders of the Convertible Notes. This second payment will be made after the Company obtains shareholder approval for the capital injection of $19.7 million.