partnership with second largest phone manufacturer

Media Release
FRESHTEL TEAMS UP WITH BINATONE TO BRING INTERNET
PHONE-CALL ERA TO MASS MARKET
Melbourne, Australia, 7th February 2006: Freshtel Holdings (ASX: FRE) has today
signed a landmark agreement with the Hong Kong based Binatone Telecom Group to
co-develop and deliver internet telephone hardware along with Freshtel’s internet
telephony solutions to the global mass market.
The combination of Freshtel’s capabilities for innovative internet telephone
technology, together with Binatone’s telephone handset manufacturing and
distribution expertise presents an exciting opportunity to capture a dominant market
position in this growth area of telecommunications.
Established in 1958, Binatone the world’s second largest digital cordless phone
manufacturer is a leader in telephone handset manufacturing, with market share in
excess of 25% across the UK and Europe. Binatone is a leading supplier to
international retailers and major telecommunications providers including Telecom
Italia and Deutche Telekom.
This agreement will see Freshtel provide to Binatone the software technology and
electronic hardware design required to manufacture internet telephone hardware and
software. Binatone will assume responsibility for the funding, manufacture and
distribution of the hardware to its existing customer base. Freshtel will receive a
share of all sales revenue from the sale of hardware.
“Binatone, is a key player in the UK and Europe and this year will enter the US and
Indian telecommunications markets. This agreement opens the doors for Freshtel to
offer its Internet telephony solutions to Binatone’s major customer base in over 44
countries around the world, including some of the world’s largest retailers such as
Wal-Mart and Carrefour in Europe,” said Michael Carew, CEO, Freshtel Holdings.
“This is also a significant strategic step for Freshtel, because it demonstrates that we
are not seeking to become the manufacturer of these products. We are bringing in
world leaders to do that. Our capital will be deployed on the development of products
and in the rollout of our networks and services globally.” said Mr Carew.
Binatone founder and Chairman, Gulu Lavini, said: “Binatone has been at the
forefront of innovative telecom technology for the past four decades. The next
telecom revolution is VoIP – and we are determined to be instrumental in bringing it
to the mainstream”.
Binatone Group Marketing Manager Nick Andrews said the deal could “potentially
double” Binatone’s business.
“Through its market leading position in digital cordless phones, Binatones extensive
distribution network can extend Freshtel’s technology to a global market,” he said
Freshtel now has global mass market distribution capabilities in terms of its hardware
and network. Binatone will earn a share in call termination revenue generated on
any Freshtel service launched with Binatone’s customers introduced to Freshtel.
“We believe we have now become accepted as a world leader in the development
and deployment of internet telephone services, and that will continue to be the main
thrust of our business. This was well demonstrated,” said Mr Carew, “when Tesco,
the leading UK retailer, entered into an agreement with Freshtel on the 29th
December 2005, to market our product under their label in the United Kingdom”.
“It’s very exciting and most pleasing for a young Australian company to be singled
out by a major retailer in the United Kingdom” said Mr Carew. “Also, as a separate
transaction, Tesco purchased 9,500,970 shares in Freshtel, which amounts to 6% of
the company’s shareholding, and we are delighted to have Tesco as a substantial
shareholder on the register. We look forward to a long and profitable partnership
with Tesco” said Mr Carew.
About Freshtel Holdings
Freshtel Holdings Limited is an Australian internet telephone technology company
that develops and markets VoIP telephony products and services. Freshtel Holdings
Limited offers end-to-end white label VoIP solutions to wholesale customers globally
through its wholly owned subsidiaries, Voicestream Network and Virbiage and has a
direct-to-market retail channel through www.freshtel.net
For investor relations inquiries:
Peter Warner
Commercial Director
Freshtel Holdings
Ph: 02 8448 8104 \ 0418 968 086
E: [email protected]
For media inquiries:
Abbie Ferdinando
Buchan
Ph: 02 9237 2802 \ 0415 428 492
E: [email protected]