engin positioning for growth Sydney, Australia, 26th June 2006 –...

engin positioning for growth
Sydney, Australia, 26th June 2006 –

engin Limited (ASX: ENG) (the “Company”), the Australian broadband phone company wishes to clarify a number of issues raised by
shareholders since its announcement of an Extraordinary General Meeting to be held on 25 July 2006.

The company confirms that it has $3.0 million cash which is sufficient to fund its current scope of operations and reach operational breakeven by the end of the September quarter 2006.

With the benefit of the last capital raising in January 2006 engin continues to achieve its targets, doubling subscriber lines to close to 40,000 and is currently adding new subscriber lines at the rate of 4,000 per month.

- engin has called the Extraordinary General Meeting to refresh its capacity to issue additional shares. This proposal provides the Directors with the flexibility to fund an acceleration of growth in subscriber lines principally through additional marketing activity. If this investment proceeds engin expects to be servicing in excess of 100,000 subscriber lines by June 2007 and to have expanded its network capacity to over 250,000 subscriber lines at relatively minor expense.
A consequence of accelerating growth would be a delay in the Company reaching operational breakeven as any additional marketing expenditure would be expensed immediately.

The Company also confirms that the Vodafone guarantee of $2.0m was released in April bringing to an end all matters relating to that dispute.

http://sa.iguana2.com/cache/df8e44ee2c20cbb4eb91cc1f134c2273/ASX-ENG-416084.pdf