14 July 2004The ManagerAustralian Stock Exchange Limited...

14 July 2004

The Manager
Australian Stock Exchange Limited (“ASX”)
Company Announcements Office

Dear Sir

Company Update

With the close of the financial year, the directors of Quadrant Iridium Limited (“Quadrant” or the “Company”) would like to provide shareholders with a snapshot of the Company as at 30 June 2004. It has been a significant six months with the Company having grown considerably its new venture Approach Telecom; generated continued strong revenues through ETSdirect; and received ongoing positive results from its investment in Iridium Holdings LLC. In addition, the Company has taken a 20% interest in SMS Access Limited, a unique global SMS operator based in the UK; also secured at a nominal cost, pending shareholder approval, an option over 70% of Global Vending Pty Ltd; and is examining other technologies that it could leverage against its transaction processing expertise.


ETSdirect Pty Ltd

ETSdirect Pty Ltd is a wholly owned subsidiary of the Company and incorporates three discrete business units. The first is marketed under the ETSdirect name for mobile service arbitrage (MSA). The second is Approach Telecom which operates enhanced telephony services (ETS) within Australia and the third is ETS provided to the rest of the world through an interest in QTel (Jersey) Limited. For comparative purposes the revenue and contribution figures have been grouped along service lines, i.e. MSA and ETS are separated and unaudited management figures are used.

ETSdirect Pty Ltd now has several MSA contracts with local telecom carriers and resellers in Australia. The revenue for the year was $959,000 (2003 $305,000) with an earnings contribution to the Company of around $440,000 (2003 $152,600). This business is stable and the Company is currently exploring overseas markets where this product may be applicable.

Approach Telecom provides long distance enhanced telephony services to media content providers and other telecommunication companies within Australia, QTel (Jersey) Ltd provides the same services globally, excluding Australia. The operations commenced in February 2004 and for the quarter ended 31 March 2004 achieved revenues of approximately $245,000. During the last quarter revenues rose to $807,000 for a total of $1,052,000 for the five months to 30 June 2004. These revenues contributed approximately $263,000 to the Company’s earnings to 30 June 2004.

Revenue for the month of June was approximately $307,000 and the contribution to earnings, $49,000. The Company anticipates that the ETS operations will continue to grow over the coming year.


Iridium Holdings LLC

Iridium Holdings, through its wholly owned subsidiary Iridium Satellite LLC, continues to trade cash flow positively and whilst a return from operations is not likely in the near term, the Company believes that the investment of USD$20.8 million is conservatively recorded in the Company’s accounts.


SMS Access Limited

SMS Access Limited is the owner and operator of a global SMS business that was established in June 2004. It is currently completing interconnect agreements with international carriers and plans to launch its service in the second quarter of the 2005 financial year.

It will provide unique cross-border connectivity for multi country broadcasts or promotions. This will allow broadcasters to display one number on their global/regional broadcasts or promotions.


Global Vending Pty Ltd

Through Global Vendings subsidiary, Express Rx Pty Ltd (ERX), work on the prototype of the remote dispensing device is continuing with the objective of commencing a field trial in the third quarter of this financial year. Interest in the pharmacy remote dispensing machine has been received and pending the outcome of the trial, marketing of the device will commence. ERX is a logical fit for the Company and uses the expertise developed by Quadrant in transaction processing together with the healthcare management in ERX to grow the business.


About Quadrant Iridium Limited

Quadrant is an investor in, and operator of, telecom venture and payment systems both in Australia and globally.

Through its subsidiaries it holds several investments; a US$20.8 million investment in the Iridium satellite constellation; global SMS operator, SMS Access Limited based in the United Kingdom; and Approach Telecom based in Australia, which is managed by Quadrant.

Quadrant is focussed on innovative and emerging transaction related technologies and processes to generate revenue and enhance shareholder value.


About Iridium Satellite LLC

Iridium Satellite LLC (www.iridium.com) is the only provider of truly global satellite voice and data solutions with complete coverage of the earth (including oceans, airways and Polar Regions). Through a constellation of 66 low-earth orbiting (LEO) satellites operated by The Boeing Company, Iridium delivers essential communications services to and from remote areas where no other form of communication is available. The service is ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas and heavy construction. Iridium currently provides service to the U.S. Department of Defence under a multi-year contract. Iridium works with more than 35 seasoned service partners to sell and support the service globally.


For enquiries about the above please call Michael Boyd on +61 8 9489 6219 or Michael Abela on +61 3 9607 1362.


Yours faithfully

Michael Boyd
Chairman