More on the UEC take over / buyout scenario., page-10

Hi Peter,

I am still searching out some information on UtiliTel but the confidentiality arrangements surrounding the consortium and its members makes information hard to come by. More, however, will be publicly disclosed during June.

Also noticed that Energex is planning to speak at a Utilities conference in September on the topic of UtiliTel's Business Case (ie: something will happen way before then).

Meantime, I will search through back issues of Communications Days to see what other information I can gather.

On the subject of UEC, however, Q2 will be quite good for the Company with likely sales of >$16m, including >$10m in recurrent sales (up 25% on Q1), and attribution to revenue of the $6.0m Lucent payout.

The Lucent payout is quite interesting because it appears that UEC has been paid out ~2 years future earnings in order to bring the Contract to an end (ie: it had ~3 years to go).

McGrath's shares are also currently held in escrow, with 25% of the 1.0m shares exercisable once the UEC share price exceeds 30c. A further 25%, @60c, then 25% @$1.20, and the remainder @$2.20.