acquisition of rajon completed MELBOURNE – 22 December, 2005 –...

acquisition of rajon completed MELBOURNE – 22 December, 2005 – destra Corporation Limited (ASX:DES)
(destra) has completed its acquisition of The Rajon Music & Video Group
(Rajon), one of the largest independent record labels in Australia.

Rajon owns and controls a very successful catalogue of artists, which
has
an impressive track record including 32 gold records, six platinum
records
and 42 major industry awards. Artists include Melanie C (ex-Spice
Girls),
Tina Cousins, Daniel O’Donnell and Ronn Moss.

destra Media has experienced rapid growth throughout 2005 and ends the
year with the purchase of Rajon whose financial strength allows destra
to
facilitate further investment in digital media. Rajon is a highly
respected participant in the music industry and is represented on the
Australian Record Industry Association (ARIA) board by Rajon’s COO, Ken
Outch.

“The acquisition provides scale and profitability to our destra Media
division and effectively doubles the size of destra in terms of
annualised
revenue and earnings," said Domenic Carosa, destra’s CEO. “Importantly,
it
forms one of the core planks of our media strategy - Music,
Entertainment
and Youth.”

“We anticipate substantial synergies are available through the
collaborative participation by Rajon and destra in the growth areas of
digital music and video, mobile phone content and music self publishing
markets, leveraging the strength of destra Music, MP3.com.au and destra
Mobile,” said Carl Olsen, destra’s Chairman.

Rajon is distributed by Sony BMG Music in Australia and supplies product
to department stores, music & DVD chains and independent music & DVD
retailers. Rajon has recently expanded the operation into New Zealand
and
Asia. Distribution is also handled by Sony BMG Music in both Asia and
New
Zealand. “We congratulate John Evans, Rajon and destra on their
agreement.
SONY BMG has business arrangements in place with both companies and,
through today’s acquisition, we look forward to that relationship
progressing. The continuing participation of John Evans and his senior
team is also very welcome in destra’s local and international growth
plans.” said Denis Handlin, Chairman & CEO, SONY BMG Music Entertainment
Australia & NZ.

John Evans will remain as Chairman of Rajon and all of the existing
senior
management team will remain at the company to continue the successful
development of the business. He has served the Australian record
industry
for 43 years, founding J&B Records with Brian Nichols in the 1970s,
which
subsequently listed on the ASX. He also started Castle Communications in
Australia and the U.K.

John Evans was elected to The ARIA Board and was re-elected to serve
over
15 years. “The combination of Rajon’s traditional music marketing
expertise, along with those of destra’s technology skills will provide
greater opportunities and growth for our artists and licensors moving
forward. We are focused on growing the business in Australia and
internationally,” commented John Evans, Chairman of the Rajon Group.

The acquisition was secured utilising a debt funding facility of up to
$3
million from St George Bank Corporate & Business Banking.