ST SYNERGY LIMITEDACN 060 369 048EQUITY INTEREST IN PANORAMA...

ST SYNERGY LIMITED
ACN 060 369 048

EQUITY INTEREST IN PANORAMA LABS AT STRATEGIC 51%
ST Synergy Limited (the "Company") is pleased to advise that it has increased its direct equity interest in Panorama Labs Pty Ltd (“Panorama Labs”) from 44.17% (as announced on 21 December 2006) to a strategic 51%. Panorama Labs is an Australian company achieving significant breakthroughs in the areas of magneto-optics and fiber-device technology that heralds a revolution in the way images are projected and displayed.
The Company has over the last 18-24 months sought to increase its investment in Panorama Labs. In keeping with this objective, the Board announces it has acquired additional PanoramaLab shares from existing shareholders to take its interest through to 51%. These acquisitions were finalised today, and funded by a cash consideration of $701,300 along with the issue of 587,696 fully paid ordinary shares in ST Synergy Ltd, (at an issue price of $1.65). The fully paid shares are subject to escrow agreements which limit their sale on the basis that only 25% become available for dealing at the end of every three months from the escrow commencement date.
In addition, the Company is pleased to announce that it has completed a private placement to raise $1,425,501 through the issue of 950,334 fully paid ordinary shares at $1.50 each (“the Placement”). The capital raising will assist the Company in funding the cash component for the Panorama Labs share acquisitions noted above as well as providing for additional working capital and for financial commitments in the period ahead.
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Following the Placement, the Company’s issued capital will be 88,108,045 fully paid ordinary shares (which includes the conversion of 27,260,255 options which were exercised on or before 31 December 2006 at $0.20 and the escrow shares referred to earlier).
The Board believes that its ongoing financial investment in and commitment to Panorama Labs is well vindicated. Panorama Labs technologies will dramatically improve the quality and economics for a wide range of existing product categories which include large-area flat panel displays, theatrical and consumer projectors, head mounted “virtual reality” goggles, handheld electronic games and telecom switching devices. These technologies incorporate record breaking switching speeds, low power requirements and a new paradigm for manufacturing large and flexible displays. For further information on Panorama Labs go to www.Panorama Labs.com
As the largest individual shareholder in Panorama Labs, the Company will continue with its pro-active involvement in bringing Panorama Labs technologies through to product commercialisation.
The Board will also now focus on considering the various commercial alternatives available to maximise this strategic investment for the benefit of all ST Synergy shareholders.
Yours faithfully
John R Athans
Chairman
ST Synergy Limited
7th February 2007
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