MELBOURNE: 17th October, 2006NEWSAT LIMITED HIVES OFF AIRWORKS...

MELBOURNE: 17th October, 2006
NEWSAT LIMITED HIVES OFF AIRWORKS SUBSIDIARY
Strategic sale completes re-focus as a pure satellite play
NewSat Limited (ASX: NWT) announced today (17th October, 2006) that it had sold its
subsidiary AirWORKS Pty Ltd, Australia’s leading in-store media company delivering
advertising to the moment of purchase, for a deal of worth up to $7.25 million.
The Board accepted the offer for AirWORKS from purchaser, the Claude Group Pty Ltd,
in a sale structure featuring payment of $2.25 million now and a further $5 million over
time subject to certain ongoing commercial conditions.
The move finalises NewSat’s shift to become a pure satellite company, a process
directors flagged last year when they announced the acquisition of two mediaport assets
in Adelaide and Perth for $13 million.
AirWORKS has been nurtured in the parent company’s stable since acquisition in
October 2004. Directors reported in the 2005 annual report that AirWORKS was trading
profitably and today its sale represents a strong return on investment for the company.
“Under our parent umbrella, AirWORKS has blossomed into being Australia’s leading
in-store marketing media company featuring the exclusive contract to deliver advertising
content at the moment of purchase across more than 720 Woolworths supermarkets and
360 Woolworth liquor outlets,” said Adrian Ballintine, Founder and CEO of NewSat
Limited.
“AirWORKS in-store advertising media is aimed at the Fast Moving Consumer Goods,
financial services and telco sectors encompassing radio, floor, trolley and shelf
advertising, targeting 5.36 million Woolworth shoppers per week in 13.4 million
transactions.
“NewSat delivers centrally managed advertising content by satellite for AirWORKS to a
network of audio and in-store television,” he said.
NEWSAT LIMITED ABN 12 003 237 303 ASX Code ‘NWT’
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“AirWORKS business is performing strongly and we will continue to be the exclusive
provider of satellite services, notably to the key client Woolworths under the deal
announced today.
“NewSat gains a cash injection to invest back into our business development, we retain a
major client and we put the last piece of the jigsaw into place delivering the pure satellite
play we previously promised the market,” he said.
ADRIAN BALLINTINE
Founder & Chief Executive Officer
NewSat Limited
For further information:
Media Enquiries: Adrian Ballintine, Founder and CEO, NewSat Limited:
Shareholder Enquiries: James Kellett, Company Secretary, NewSat Limited