newsat’s strong growth

NEWSAT’S STRONG GROWTH DEFIES MARKET TRENDS
The fortunes of NewSat Limited (ASX: NWT) have changed dramatically and in a positive
direction, in a period when much of “Corporate Australia” is struggling.
The company expects to finish the six months to December 2008 approximately 40% above its
revenues for the corresponding period last year.
In the second six months of the financial year it expects the positive trend to continue so that an
operating profit is achieved on the back of the strong recurring revenue base.
The company has continually told the market it would remain debt free and asset strong and
has kept that promise. The result is a very healthy business with an enviable corporate
customer profile capable of sustaining year on year growth.
"This is just the tip of the iceberg" said CEO Adrian Ballintine. NewSat is currently in
negotiation for extremely large satellite communication contracts. In years gone by when
satellite was less fashionable and when the market doubted the ability of young companies to
compete, many contracts which could have been well executed by NewSat were let
inappropriately.
“NewSat has outgrown that former status and is now recognised as a regional leader in satellite
communications. NewSat is currently actively supporting corporate giants from around the
world and is poised to win those larger contracts which once went begging," he said.
“NewSat's responsibility to its shareholders is to let them know their company is strong and
embarking on a high growth phase in its development. Its teleports are valuable, far beyond
the amounts provided for in the Balance Sheet, and Directors will do their utmost to ensure they
are continually correctly valued. Just last year, step one of the revaluation was approved by our
auditors.
“Many of NewSat's contracts run from 2-5 years and some up to seven years. Of course, there
has always been the need for overheads to manage the quantum and importance of the assets
owned by NewSat. Eventually the recurring revenue model progresses beyond the break-even
point and long-term sustainable, operating profits are common place. NewSat is not far from
this milestone.
Directors believe that NewSat is a long-term, highly feasible and sustainable entity with only one
direction in which to head.......upwards. They wish the company to be judged by results and
fully expect to announce a number of additional successes very shortly.
“This is not the last time you will hear about NewSat’s success before Christmas. Directors
have always been willing to be judged by the scoreboard and from here on in its good news for
NewSat,” said Mr Ballintine.

TG