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Announcement text

  1. SevenofNine

    410 Posts.


    HOMEX - Perth

    New Tel Limited announces that it has today entered into an agreement
    to purchase Delta Phones Pty Ltd (Delta), one of New Tel's major
    mobile phone dealers to strengthen the Mobile Division of New Tel.

    The purchase consideration is $4 million paid as a convertible note
    with up to a further $1 million in performance incentives paid in New
    Tel ordinary shares. The note may be converted into shares any time
    between 9 September 2002 and 26 December 2003, with the number of
    shares to be issued to be determined by the closing price on the day
    prior to the conversion notice being received by the Company up to a
    maximum of 17.8 million shares. The performance incentives are based
    on the number of net mobile phone activations achieved in three
    years, with the number of shares to be issued to be determined by the
    closing price at the end of that period.

    Delta is owned by Mr Mario Salvo (owner of Delta Europcar). Mr Joseph
    Touma and Mr Ray Sleiman. The purchase of Delta is a result of New
    Tel's assessment of it's dealer agreements arising from the recent
    acquisition of Digiplus. This consolidates the Company's mobile phone
    marketing program into one division with a strong retail presence and
    will decrease customer acquisition costs.

    Delta has 30 retail outlets in Victoria and New South Wales which
    will be rebranded as New Tel stores, and New Tel will expand on these
    and Delta's 30 authorised agents to achieve a strong retail presence
    in all capital cities. The retail outlets will offer New Tel's
    complete range of products and services including competitive mobile
    services, local, national, international and internet.

    Delta has a state of the art call centre facility and customer
    loyalty programmes that have proved very successful in securing and
    retaining customers, and New Tel will use these to enhance it's
    acquisition, retention and marketing programmes.

    The Company may also seek shareholder approval for the issue of the
    consideration if required under Listing Rule 7.1.

    A media release is attached.

    C Piercy


    Australian based telecommunications and multimedia group, New Tel
    Limited (ASX: NWL, NASDAQ: NWLL), is purchasing one of its major
    retail dealers in a $4 million deal which has an added $1 million
    performance incentive component.

    The company is acquiring Delta Phones Pty Ltd, which has 30 retail
    outlets in NSW, and Victoria and a state of the art call centre.
    Delta is owned by Mario Salvo (owner of Delta Europcar), Joseph
    Touma and Ray Sleiman.

    New Tel's managing director and CEO, Peter Malone, said today the
    Delta purchase resulted from an assessment of its national dealer
    network and its recent $50 million acquisition of Digiplus.

    "Delta's customer loyalty programs along with their ability to secure
    and retain clients makes them an attractive proposition for New Tel,"
    he said.

    "In fact, once the arrangements are completed their programs will be
    central to our expanded mobile telephony division, and decrease our
    customer acquisition costs.

    "New Tel is to rebrand Delta's retail outlets as New Tel shops, and
    we will offer customers our complete range of fixed, mobile, local,
    national and international telephony and Internet services.

    "The $4 million will be paid via a convertible note and the incentive
    payment of up to $1 million depends an the number of mobile customers
    obtained over a three year period with the payment in New Tel shares
    determined by the closing price at the time."

    For further information contact: Peter Malone (08) 9244 1166

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