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CAG - ASX Announcement

Currently unlisted. Proposed listing date: TBA
  1. MB22

    118 posts.
    ASX ANNOUNCEMENT 3 July 2002
    At CommunicAsia, the leading telecommunications equipment trade show in the Asian region, Cape Range Wireless launched its product range to the international market. Sales, appointment of distributorships, as well as licensing and joint venture opportunities have arisen as a result of the Company’s attendance.

    At the show the Cape Range Wireless’s staff were able to explain not only the excellent solution that the Company’s system is able to offer telephone companies seeking fixed wireless access but also to show why the product has a cost and performance advantage over equipment currently available in the market place. Cape Range Wireless Management also became aware of many outstanding orders by Telco’s on which existing equipment has failed to meet specifications.

    Today we are pleased to be able to announce details of our plans in Perak State. Of particular importance is the emergence of PTDC Sdn. Bhd., a newly formed corporation that is substantially owned by the Perak State Economic Development Corporation. The new entity has been developed from the earlier arrangements with Kris Global Communications and will enhance the commercialisation of our product in this market.

    The agreement expands the level of cooperation with PTDC who will install the Company’s equipment in projects, which are in turn integrated into the national telecommunication backbone.

    PTDC has agreed to allow the Company to use these installations as reference sites to demonstrate the capabilities of the system in a wide variety of deployments to other potential customers.

    PTDC has identified eight other housing developments in the State of Perak which will now increase the number of lines required to more than 10,000 lines. These real estate projects are at various stages of development. The market value for the supply of the telecommunication lines has increased from US$3.5 million to US$6 million.

    Earlier this year we advised shareholders that we hoped to be able to give further details of the 120,000 line contract (for US$75 million) in Malaysia. Discussions with the client last week on accelerating commencement of installation were most productive. We are however, unable to give details that I had hoped at this stage.

    The Company is currently completing details on a further two new contracts for immediate trialling and if successful, will result further sales contracts in excess of US$10 million over the next 18 months. The above projects would bring the total sales value to the telecommunications entities to approximately US$92 million.

    Had shareholders been able to attend CommunicAsia they would have witnessed the acceptance of our product by both potential customers and other equipment suppliers. One leading rural wireless equipment supplier described the Cape Range Wireless display and media material as “spectacular” and the Company’s technology as “frightening”. Principals of this North American Company have asked for commercial meetings.

    Another Asian based competitor whose equipment, whilst far more expensive than that of Cape Range Wireless, operates with data speeds of 9.8 kB per second (we operate at speeds of 2,000 kB per second with our current range) and over distances of up to 15 km (we operate at distances of up to 50 km), have similarly asked for commercial meetings.

    Expression of interest was also received from VSAT suppliers wherein our equipment, when integrated with VSAT equipment, can reduce VSAT communication costs per line by more than 50%.

    Requests for additional information from International Aid Agencies currently building and rebuilding rural communication networks, as well as small and large Telco’s were received at the tradeshow.

    The most important thing, however, is for the Company to complete the current rollout before meeting the needs of other companies and for other applications. With our proprietary technology we must complete the first installation as demanded by the industry before we can take advantage of the enormous opportunities that lie ahead.

    We are continuing to add to engineering skills to maintain the long-term development and migration path of the products. Additionally, international marketing presence must be developed, from Greenland to South America, from New Zealand to Burma, from Malaysia to Australia.

    A number of Asian press agencies have interviewed the Company and more are planned. As the Company becomes aware of any published material, it will place these articles on the website (www.caperangewireless.com).

    Later in the year the Company will prepare a road show for industry and investors alike so as to be able to demonstrate equipment and answer questions. There exists in the world today, a multitude of wireless solutions to different telephony requirements. None of them, with the exception of Cape Range Wireless, successfully address the market in which Cape Range Wireless has devoted its activities for the past 4 years.

    The trade show at CommunicAsia has confirmed the commerciality and technical success of the Company’s product range at a time when many of our potential competitors are giving up. The challenge now is to capitalise on the unique position in which we find ourselves.

    To give shareholders an idea of the magnitude of what is being developed internationally, the following facts speak for themselves.

    Fixed Wireless Access (Wireless replacing copper, fibre or non-mobile access to worldwide networks) is currently estimated by the International Telecommunications Union as likely to achieve 10% penetration of the potential market of 1 billion lines needed in Asia alone, i.e. installation of 100 million lines over the next 5 years, provided that the cost per line can be brought down to US$500. Cape Range Wireless is currently able to meet that cost while providing integrated high-speed data, voice and G3 fax on the same line. With current and pending fixed wireless contracts in Malaysia alone, valued at around US$92 million, the potential of the Company is apparent. The Directors are targeting to be able to reach 15% of the available Asian market in five years time.

    The Company’s recently developed technology project named “Havana” has already been incorporated into the Company’s own products. It also has applications to reduce the cost and increase the performance of mobile networks such as CDMA, 3G and 4G networks, as well as to be able to upgrade wireless LAN networks. Cape Range Wireless does not currently compete in these two areas and will license its technology to others in these fields. Recent advice to shareholders of a possible licensing arrangement for Havana to develop a CDMA modem via a Joint Venture with Telekom R&D is one such example.

    However, in the area of Fixed Wireless Access, particularly in rural and outer suburban areas, Cape Range Wireless has the potential to become the player on the world scene.



    Ron Wise
    Chairman

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