target - $1.05, page-7

Prepayment Cards Limited to Implement UK's Largest ITSO Based Transit Smart Card Scheme

Please find attached an announcement from our associated company, Prepayment Cards Limited (PCL), which has recently announced it will be moving forward with the implementation of the “ReadyCard” scheme for the Greater Manchester Passenger Transport Executive (GMPTE).

The ReadyCard scheme will be the UK’s largest multi-operator automated fare collection scheme based on the United Kingdom ITSO standard. The ITSO standard is central to the development of integrated smart card transit schemes across the UK.

Implementation of the ReadyCard scheme is scheduled for completion by late 2005 and is expected to generate revenue of approximately £20m over the life of the project comprising development, delivery and a nine-year operating contract.

The implementation is now proceeding following publication of the ITSO specification, which was published earlier this year.

ERG is now finalising the agreement that will see its shareholding in PCL move from 47% to 55%. This emphasises ERG’s ongoing commitment to the UK and strengthens ERG’s market position. The remaining 45% will be held by Stagecoach Holdings PLC, First Group PLC and National Express Group PLC – the three largest transit operators in the UK. ERG anticipates it will account for PCL on a consolidated basis in full during the financial year ending 30 June 2005.

Yours faithfully

Allan Sullivan
Chief Executive

This contract equates to about AUD$53.3 million. After moving to 55% of PCL, ERG's share will be over AUD$29 million.