MUL announcement

ASX Code: MUL
Announcement: Multimedia Forms Australasian Broadband Services

Date: 16 May 2002 - 16:06:45
Market Sensitive: Yes

MULTIEMEDIA LIMITED 2002-05-16 ASX-SIGNAL-G

HOMEX - Melbourne

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Multiemedia (ASX:MUL) has today announced the formation of a new
subsidiary, Australasian Broadband Services (ABS) to deliver the
highest speed satellite broadband ever seen in Australia.

The two-way technology, to be provided by global leader in satellite
communications, ViaSat, will allow for an uplink of over 1 Mb, far
outstripping existing providers. The service offers a unique next
generation broadband solution for Australia's many rural, remote and
indigenous communities.

Multiemedia has been in discussions with global leaders in satellite
technology for over a year, and are now ready to proceed after
investigation of the available technologies and thorough due
diligence.

At its formation, Multiemedia will take a majority stake in the new
entity, with the remainder to be funded by integral partners and
private investors. ABS has been formed to build and expand on the
existing Multiemedia satellite business.

According to Multiemedia Group Managing Director & CEO, Adrian
Ballintine, this investment represents a great opportunity to "be in
at the ground floor of the next generation of broadband
communications."

"Government and business alike have long recognized the need for
wireless and satellite solutions to meet the shortfall in high speed
Internet access. Only now can we offer a solution that meets
business, government and community expectations for high speed
connectivity, regardless of your location or your demand for
bandwidth" Mr Ballintine said.

Receiver stations anywhere in Australia will be able to transmit data
to the network hub at speeds up to 1.15 Mbps (10 times faster than
existing broadband), with data downloads of up to 60 Mbps, satisfying
bandwidth-intensive applications using IP data.

The ABS teleport hub will cover all of Australia and reach into Asia
and Europe, making Australia a regional leader in broadband delivery
by providing huge opportunities for export revenues.

It will deliver a comprehensive multimedia broadband solution,
Offering:
* Internet access
* Digital media streaming
* Videoconferencing
* Voice over IP
* Distance learning
* File transfer
* Multicasting
* Virtual private networks

"The range of possible applications is limited only by your
imagination," Mr Ballintine says.

"Current satellite services cannot sustain video conferencing. This
easily can. Current providers talk about voice and fax over IP, but
to no avail. This service can comfortably deliver," Mr Ballintine
said.

ABS has reached agreement with three global leaders in satellite
technology.

New Skies Satellites' (http://www.newskies.com/) newest satellite,
NSS-6, to come on-stream in November will provide the space segment
which will provide reliable, high powered satellite bandwidth for ABS
customers. New Skies' Director, American Sales, Michael Polmar, says
"New Skies Satellites looks forward to the opportunity to provide ABS
with the most advanced Ku-band platform available. With the power,
coverage and flexibility of NSS-6...I am confident New Skies would
be a valuable team member."

Comsat Laboratories (http://www.viasat.com/), a division of the
NASDAQ-listed ViaSat Inc, is the provider of the satellite baseband,
hub equipment and software through LinkStar(TM), a two-way
bandwidth-on-demand broadband VSAT system. President of Comsat
Laboratories, Benjamin Pontano, says "ViaSat will provide a powerful
range of products, research and investment in future enhancements,
coupled with a very committed team of individuals, to ensure the ABS
project is successful from inception, full roll out and beyond."

IP Access International (http://www.ipinternational.net/) has entered
into a three-year exclusive agreement with ABS to design, develop and
deploy service provider networks in Australia and throughout the Asia
Pacific. Bryan Hill, President of IP Access International, says, "IP
Access will also work with ABS to expand the footprint beyond
Australia to reach greater Asia .... the entire IP Access team is
excited about this project and is willing to use all available
resources to ensure it is a phenomenal success."

Multiemedia has been in discussion with Federal, State and Local
Governments to advise them of their plans, and to investigate ways
Government can play a role in assisting the rollout of this leading
edge technology.

"Governments at all levels have quickly understood that this service
presents many opportunities to fulfil their commitment to high-speed
Internet connectivity in regional and rural communities," Mr
Ballintine said.

"The applications in the health and education sectors, as well as the
solution it offers to ISPs offering last mile coverage for remote and
indigenous communities, sets this technology apart from other
providers," Mr Ballintine said.

Contact:

Adrian Ballintine
Group Managing Director & CEO
Multiemedia Limited
Tel: (03) 9603 3200