CAG 0.58% $1.71 cape range ltd

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    Chairman`s Address to Shareholders

    Document date: Fri 31 May 2002 Published: Fri 31 May 2002 14:08:58
    Document No: 217195 Document part: A
    Market Flag: N
    Classification: Chairman's Address to Shareholders
    CAPE RANGE WIRELESS LIMITED 2002-05-31 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    The Company is pleased to advise that Telekom R&D, a subsidiary of
    Telekom Malaysia and the Company are actively pursuing ways to
    incorporate the Company's Havana technology into fixed and mobile
    wireless products. The specific aspects of the relationship is
    currently being defined and shareholders will be given specific
    details of the arrangement when documentation has been completed and
    accepted by the boards of both companies.

    Shareholders are reminded of the advantages of the Company's two
    major technologies, namely iPMA and Havana in a summary at the end of
    this announcement. Both of these technologies are already
    commercialized in the current ARCADIAN Wireless Communications
    System.

    INSTALLATION PROGRESS

    The Company has been receiving completed PCBs and other components
    per the scheduled build plans for the ARCADIAN Wireless
    Communications System product line from ITS, the Company's contract
    manufacturer.

    Installation in Perak State is proceeding on schedule. Revenue from
    this contract as well as the initial contract for 120,000 access
    lines will see the Company achieve its first revenue this year.

    COMMUNICASIA

    The Company will be officially launching its international marketing
    campaign for the Arcadian product line at CommunicAsia, which
    commences on 18 June 2002. CommunicAsia is widely considered as the
    premier telecom show in Asia and last year had over 48,000 attendees.
    Most major telecommunication equipment firms will be exhibiting.

    This trade show is considered by the Company to be the best venue for
    the launch of the Company's international marketing effort.

    Cape Range will be hosting several events during the show at which it
    will, in association with customers and commercial partners, announce
    details that have commercial relevance to the value of the Company.

    The Company will be presenting its product range at a booth alongside
    its international competitors.

    IPMA

    iPMA supports voice via a conventional telephone hand set as well as
    high-speed data for PCs. This protocol allows simultaneous
    transmission from both the remote and the base independently. As a
    result, it carries voice efficiently and is suited to handle the
    asymmetrical data requirement caused when users download Web pages to
    their PC's.

    iPMA guarantees that the maximum latency that will occur for voice,
    maintains telephone voice quality of service. This is not guaranteed
    with standard IP. iPMA allows for extra throughput as bandwidth does
    not have to be reserved to handle the probability that multiple users
    will need to transmit at the same time.

    The design of this system is similar to that of a highway. For
    example, if cars can be moved in an orderly way from ramps onto a
    highway, not as many lanes (bandwidth) are needed to maintain a
    constant speed of traffic. This requires that all cars (messages)
    entering the highway enter in a coordinated way. iPMA guarantees that
    all voice information enters the radio link in such an orderly way.

    iPMA is designed for coverage over a wide area compared to mobile
    cellular protocols which are designed for very high teledensity
    deployment over short distances.

    Where iPMA achieves 84% - 96% of the bandwidth available for payload,
    CDMA can only achieve around 50%.

    International patents are pending for iPMA. The Cape Range Wireless',
    ARCADIAN Wireless Communications System has been exclusively designed
    around this protocol

    HAVANA

    Perhaps the biggest single global application for Havana is the
    reduction in power output from hand held cell phones using CDMA and
    other 3G systems. Havana is a new type of propriety Spread Spectrum
    base band processor. Havana technology allows the ARCADIAN Wireless
    Communications System to receive very low-level signals, even at
    distances of up to 50km. Havana can achieve 6.8 times the data
    throughput of a CDMA2000 IX system while maintaining over 18 dB
    processing gain. The technology can also be used to reduce the
    transmitted power requirements for a CDMA cell phone to about 1/8 of
    the current systems. The first version of Havana is being sold as
    part of the ARCADIAN Wireless Communications System. Havana
    technology can be incorporated in Fixed WLL, Cellular and LAN
    markets.

    At the Shareholders AGM, Cape Range shareholders were able to take
    part and experience first hand communications using the Arcadian
    Wireless technology. The base station and remote were installed and
    operated at the West Perth office premises using the wireless link to
    dial and communicate to any location in the world, and in particular
    back to the R&D offices located in Kuala Lumpur, Malaysia.

    Overall the Company has made excellent technical and commercial
    progress and remains on schedule this year with all of its
    developments


    R Wise
    CHAIRMAN

    --------------------------------------------------------------------------------

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