+++++++++++++++++++++++++ The Company confirms that New Tel is continuing its strategic programme as a full service telecommunications carrier.
Further to an announcement to the market on 1 November 2002, the Directors have been in discussion with a number of parties to further develop New Tel's cashflow base and products and services through strategic alliances.
New Tel is pleased to advise that in accordance with this programme, the Company has executed agreements with RSL Com Partners Pty Ltd and RSL Mobile Pty Ltd to provide operational telecommunications services and infrastructure to New Tel. As a result of these strategic alliances, New Tel will continue to improve positive cash flow from its telecommunications carrier, in accordance with the Company's strategic goals to grow the business profitably.
The agreements will see RSL Com and RSL Mobile receive a contracted fee for services provided to New Tel, which is significantly less than the current costs incurred by New Tel in providing these services.
The restructuring will result in the majority of New Tel's operational roles becoming redundant. The management of New Tel will, as soon as practicable, notify its employees of the effect of the restructure on their employment status. New Tel will fulfil its obligations to all redundant employees and pay out their full entitlements.
The restructuring has been designed not to affect New Tel's 75,000 customers who will continue to access New Tel's quality products and services and receive the same high standard of customer service.
New Tel expects to finalise documentation relating to this programme this week, and the Company will then be in a position to complete its annual accounts and provide the accounts to its auditors for finalisation of their audit review.
Further to the announcement on 1 November 2002, the Company confirms it is not acquiring DigiPlus Investments Limited and its associated companies in Australia and New Zealand. As a result, the placement that was approved by shareholders on 22 August 2002 to partly fund the DigiPlus acquisition will not proceed. The Company is in the process of reclaiming the $4 million deposit that was paid to the DigiPlus vendors in connection with the proposed acquisition.
The Directors also advise that, further to an announcement on 13 October 2002 relating to New Tel's $22 million equity line with Global Emerging Markets (GEM), the Company has not drawn down any funds from this facility.