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for all you egl fans...

  1. Yak

    13,672 Posts.


    HOMEX - Brisbane

    Australian technology company eGlobal International Limited has today
    (Wednesday, January 29, 2003) announced the acquisition of the
    Information Security company Citadel Securix Pty Ltd. The acquisition
    is for 100% of the issued capital of Citadel Securix Pty Ltd for a
    total consideration of $2.73 million.

    The value paid for the issued capital in Citadel Securix Pty Ltd
    comprises a cash component of $1.67 million paid in installments and
    the issue of Convertible Notes with an aggregate face value of $1.06
    million. The Convertible Notes are broken into two series with Series
    A Convertible Note having a face value of $500,000 with a coupon rate
    of 5% per annum and convertible into fully paid ordinary shares at
    twelve (12) cents per share in the capital of eGlobal with the
    conversion date being 30 days after the release of the December 2003
    half yearly results for eGlobal. The Series B Convertible Note having
    a face value of $560,000 with a coupon rate of 5% per annum and
    convertible into fully paid ordinary shares at a 10% discount to the
    volume weighted average price for the prevailing 30 days after the
    release of the December 2003 half yearly financial results for

    Citadel Securix revenues for the past two financial years have
    averaged $6 million and the forecast revenues for the current
    financial year will be in the range of $6 - $8 million. It is
    anticipated that Citadel Securix will make a positive contribution to
    the consolidated result for eGlobal in the current year. Citadel
    Securix's unaudited revenues for the half-year ended 31 December 2002
    were approximately $4 million. Citadel Securix has traded profitably
    since its inception in 1993 other than the two year period whilst
    listed on the ASX which culminated in its delisting in October 2002.

    eGlobal's chairman Jim Goldburg said that Citadel Securix provides
    the Company with a strategic platform for further expansion into the
    fast-growing IT security market.

    He said market interest in such technologies had grown significantly
    in the wake of ongoing worldwide terrorism threats. As an example,
    Citadel Securix's proprietary Xaminer product addresses the need of
    regulatory authorities to lawfully intercept IP traffic. The merger
    will facilitate the marketing ofthis product to a wider global

    "There is now a lot more emphasis on internet and information
    security both overseas and in Australia from government and corporate
    clients. This deal means we are now extremely well positioned to
    cater for that demand by offering a more complete product offering"
    he said.

    Philip Michod, CEO of Citadel Securix added "By combining the
    extensive suite of services and solutions offered by both companies,
    the merged entity will be well positioned to become one of
    Australia's leading internet security and eBusiness providers. The
    two Companies have been working closely together for the last three
    months and enormous synergies have already been identified. A range
    of projects have already been targeted where the combined skill sets
    of each Company have increased the delivery capability and allow the
    new Group to tender for even larger contracts."

    Citadel Securix brings to eGlobal an experienced operation in the
    specialist area of IT Security to build on its strengths in
    eCommerce, smartcards and other security technologies. The combined
    IT security operations will henceforth trade under the Citadel
    Securix brand, and continue to service all existing eGlobal and
    Citadel Securix customers.

    Both eGlobal and Citadel Securix deliver information technology
    security and privacy risk management by providing clients with a
    comprehensive range of security solutions to protect them from global
    hackers, viruses and other threats on a monitored 24-hour-a-day

    Citadel Securix addresses all facets of information technology
    security and privacy, from secure internet access and gateway
    services to comprehensive security monitoring including managed
    firewalls, intrusion detection services and event correlation for
    real-time forensics.

    eGlobal managing director Gordon Chalmers said the market for managed
    security services in Australia was currently worth in excess of $600
    million per annum and was forecast to grow to $1.8 billion by 2005.

    He said the synergies and cost savings generated between Citadel
    Securix and eGlobal would likely result in stronger revenue and
    profit growth moving forward. eGlobal would initially focus on
    expanding the operations of Citadel Securix into all states and
    territories of Australia and into overseas markets.

    "We have the combined expertise and sales team to take Citadel
    Securix's products to a much wider market," Mr Chalmers said.

    "There are plenty of synergies between the two companies and the
    combined product and service range will be among the most
    comprehensive in the market."

    eGlobal, headquartered in Brisbane, currently has offices in Sydney,
    Brisbane, Melbourne and Atlanta USA. The acquisition of Citadel
    Securix will provide a presence in Canberra. eGlobal services the
    government, telecommunications, automotive, mining, health,
    manufacturing and financial industries in Australia, focusing on
    security and networking, web design, development and application
    hosting and smart card solutions.


    Visit http://www.citadel.com.au.


    http://www.eglobal.net for further information.

    Further Information: Gordon Chalmers

    Alan Smith

    eGlobal International Limited
    (07) 3369 6899

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