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TERMS OF FORTHCOMING RIGHTS ISSUE

28 September 2005
Further to our announcement of 20 September 2005 regarding a forthcoming proposed rights issue, Multiemedia Limited (Company) is pleased to announce that it has lodged a prospectus with ASIC prior to the opening of trading on ASX today.
The proposed issue will be a prorata Non-renounceable Rights Issue to raise proceeds of up to approximately $15,358,000. The principal purpose of the offer is to fund the balance of the purchase price for the acquisition of New Skies Networks Pty Limited and associated acquisition and operating costs.
The Company is offering 1,023,868,456 ordinary shares (New Shares) for subscription under the rights issue, on the basis of 3 New Shares for every 5 shares held on the record date. The subscription price for each New Share will be $0.015. The Directors believe the offer is attractively priced, and encourage shareholders to take up their entitlements.
The record date for determining shareholders entitled to participate in the issue is 7:00 pm EST, 6 October 2005. The holders of options issued by the Company can participate in the rights issue if they exercise their options and are on the Company’s share register by the record date. A prospectus will be posted to shareholders containing full details of the rights issue by 10 October 2005.
The offer will be open to all shareholders registered in Australia and New Zealand and in the event of any under-subscriptions, those remaining New Shares will be available, at the discretion of the directors, to all shareholders who accept their entitlement in full and apply for additional New Shares and any other person in Australia. The closing date for acceptance and payment of the subscription price is expected to be 26 October 2005.
Anyone who wishes to acquire New Shares will need to complete the entitlement and acceptance form that will accompany the prospectus to be posted to shareholders. A copy of the prospectus is available on the Company’s website www.multiemedia.com
ADRIAN BALLINTINE
Chief Executive Officer
Multiemedia Limited

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sub 1 cent here we come