major litigation settled

- ANNOUNCEMENT TO ASX -
Major litigation settled
The Board of CCI advises that a settlement has been reached in relation to court proceedings brought against CCI and three of its directors by the former Executive Chairman Mr. John Cannane. This follows the withdrawal of CCI’s cross-claim on or about 27 July 2006. CCI and the other defendants (including the three Directors) have agreed to pay Mr Cannane $853,000 in full settlement of his claims, plus reimbursement of his costs of $647,000. CCI will pay its own legal costs in the matter. The apportionment amongst the defendants and any reimbursement from insurance has yet to be determined.
In relation to these amounts, the previously disclosed expected financial results for the year ended 30 June 2006 had a provision set aside of $470,000, which will offset part of the settlement obligations. The Board understands that accounting standards are likely to dictate that the final net costs of this abnormal matter will have to be taken up in the financial results for 30 June 2006.
For and on behalf of the Board
Brian G Milton
Company Secretary
9 August 2006
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