newsat initiates changes for success...

Source: www.ferret.com.au

NewSat initiates changes for success
15 June 2007

NEWSAT has announced its intention to reduce the number of shareholders with unmarketable parcels. NewSat's recurring registry expense is disproportionate to the actual value of many holdings and the buy-back process offers the company significant long term savings in its operations after the initial up-front expense.

There are 5,097 of 9,746 total shareholders in NewSat currently owning unmarketable parcels, such parcels defined as $500 or less.

"It is a sound and common practice to buy back these very small and unmarketable share parcels," chairman John Walker said.

"Undertaking a Share Sale Program, by which unmarketable shares are pooled and sold by the company through their appointed broker, makes absolute sense for NewSat and the Board will make an announcement regarding timing of the buy-back shortly.

"Serious consideration is now being focussed on share consolidation too, once we are confident of positive results and notwithstanding day trader activity, the stock is capable of holding its value on the basis of market confidence,� Mr Walker said.

"Steady profitable growth, combined with eliminating the unmarketable parcels, will create a favourable environment to successfully consolidate shares on issue.

"Consolidation has been on the agenda for some time and Directors will draw heavily on the experiences of other small caps to ensure that when consolidation does occur, the timing is right. But we must stress that NewSat will not proceed with this initiative unless and until we are quite certain of our ability to predict and generate constant, satisfactory earnings."

The Directors are constantly reviewing the composition of the Board and are currently considering the number of directors appropriate for NewSat.

"We are committed to driving NewSat to become a great company and look forward to the shareholder support through this next set of changes as we continue to build the business," Mr Walker said.

NewSat provides a full range of managed communication services, TT&C and carrier monitoring from its teleports in Perth and Adelaide to Australia/Oceania, Asia, the Middle East and Africa


Ends.

Cheers, Pie