maquarie bank substanial holder, page-19

re: reminder of the company I have spoken to the company extensively in the past 3 months and everything they have promised on they have delivered. I have no reason to believe that they wont deliver a strong 1st half, remembering that June is the 1st half. All the signs from what the company has said publically point towards a strong pick up in sales revenue, and their costs remain stable.

My numbers show them doing 17.9 mill in revenue for the full year and 5.8 mill in EBITDA or 4.6 mill in NPAT. The company is valued currently at 16.2 mill with 3.8 mill in the bank. If you value them on 6x EBITDA excluding cash, that makes them worth 39 mill or 2.2c a share. Add another 5.8 mill in cash for full year earnings and they are worth 45 mill or 2.5c a share. With MBL buying in, you would have to assume they've done their homework, and anticipate earnings beyond the end of 2004.

I think people can get too het up with the past. Sure, this company was a victim of the dot com boom and burnt alot of people, but their best customers, Telstra and Optus, are still giving them business. Also, dont underestimate the "special" relationship the company has with Telstra. These guys go back a long way.