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  1. 32 Posts.

    HOMEX - Melbourne


    The Board of Directors of Intermoco Limited ("Intermoco") is very
    pleased to announce that the Company has executed a Sale Agreement
    (the "Agreement") pursuant to which it will acquire the various
    companies, assets and liabilities that collectively comprise the
    business known as Email Metering ("Email"). The transaction is
    conditional upon the receipt of approval of the Intermoco
    shareholders which will be sought at a general meeting that is
    expected to be held on 28 March 2003.

    The Email Metering Business, which was established more than 80 years
    ago, is an icon in the Australian metering industry, with a turnover
    for the six-month period ended 31 December 2002 of $68 million. It is
    the leading supplier of electricity and gas metering also exports
    meters throughout Europe, Asia-Pacific, South Africa and the Middle
    East. The Business is currently owned by Email Limited which was
    previously acquired jointly by Smorgon Steel Group Ltd and OneSteel

    The consideration payable by Intermoco in respect of the acquisition
    is $55 million, plus a further adjustment amount which it is
    anticipated could be in the range of between $5million and $7
    million. It is anticipated that any goodwill which may arise on
    acquisition will be minimal.

    The total acquisition costs will be funded by a combination of a $27
    million cash advance facility, which is to be provided by Westpac
    International Bank, and a $35 million underwritten placement of
    shares. In addition, Westpac will also provide a $6.5 million
    working capital facility, which will include the provision of certain
    bank guarantees and bonds.

    An indicative timetable for the completion of this acquisition has
    been summarised below:

    Notice of General Meeting to be
    mailed to shareholders Wednesday, 26 February 2003

    General Meeting to be held Friday, 28 March 2003

    Transaction to be completed Monday, 31 March 2003

    The Intermoco Board is excited about the many benefits and
    opportunities which the acquisition of Email will bring to both the
    Company and to Email. The successful rollout of the Company's
    innovative automated meter reading ("AMR") technology in both
    Australia and South East Asia will greatly increase the current
    demand for the range of electricity "smart meters" that are
    manufactured by Email. As such, the acquisition establishes the basis
    for Intermoco to become a leader in the wider metering/AMR business
    on an international level. Importantly, Email Metering "smart
    meters" are currently deployed in all of the pilot installations and
    commercial rollouts of Intermoco's AMR technology.

    The acquisition is a natural extension of the existing Collaborative
    Agreement between Intermoco and Email pursuant to which the two
    companies have been working closely in the joint development of
    integrated devices (which incorporate Intermoco's AMR technology
    with Email's smart meters) and the joint marketing of automated
    meter reading technology to international markets.

    Further, the Board is confident that the significant market shares
    enjoyed by Email in Australia and the United Kingdom (via its local
    subsidiary Ampy) together with the Business's long-established
    history of profitable trading will provide the combined
    Intermoco/Email group with consistent and growing cashflows
    sufficient to develop and expand the new group's respective

    Intermoco is confident that the acquisition will provide Email's
    significant established customer base with direct access to a wider
    range of metering-related products, includingAMR, whilst at the
    same time ensuring that the enviable reputation enjoyed by Email's
    quality products and brand image in the marketplace are both
    protected and enhanced.

    Further information regarding the acquisition is set out in the
    accompanying Appendix.

    Any questions relating to this announcement should be directed to Mr
    Martin Yii, Managing Director, or Mr Thomas Howitt, Company
    Secretary, on Melbourne (03) 8080 8788.

    G W Shearer
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