ERG 0.00% 2.7¢ eneco refresh ltd

succesful rollout Singapore 2/5/2002

  1. 4,330 Posts.
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    02/05 ' 0 2 THU 1 0 : 2 2 FAX m 001
    TO Company Announcements Office
    AT Australian Stock Exchange Limited
    FAX 1300 300 021
    REF CMP-0014-01
    FROM Clare Barreti-Lennard DATE 2 May 2002 GROUP
    FAX +61 8 9273 1208 PHONE +61 8 9273 1 1 1 1 PAOES 3
    RE Announcement
    Dear Sirs
    9 Media Release headed "ERG Announces Successful Rollout of Singapore Smart
    I enclose the following:
    U -
    Card System".
    Yours faithfully
    Clam Bamtt-Lennerd
    Company Secretary
    ~ : v l s a r s ' , c o ~ e c \ c o m ~ l l ~ " ~ ~ ~ u ~ i 4 \ c m p 0 0 1 ~ ~
    247 Balcatta Road Enlcatta WA 6021 Aurtnlia PO Box 670 Balcatta WA 6914 Australia I Telephone: t 61 B 9273 I100 Facsimile: t 61 8 9273 1208 1 Ernail: [email protected] Internet: www,
    ERG Limired ACN 009 l12 715 a member d r h e E?G G P ~ U O
    02/05 ' 0 2 THU 1 0 : 2 3 FAX m 002
    DATE 2 May 2002
    CONTACT Shaun Dum
    PHONE +61 8 9273 1209
    FAX +61 8 9273 1208
    EMAIL [email protected]
    ERG Announces Successful Rollout of !i
    Singapore Smart Card System
    ERG Group is pleased to announce the successful rollout of its integrated smart card
    ticketing system on Singapore's public transport network.
    The smart card ticketing system commenced public operations on 13 April 2002, following a
    successful three-month trial, and is already processing more than 1 million transactions a
    day (compared with 25,000 a day during the trial period). The system has been
    enthusiastically adopted by Singaporeans, with around 30,000 new cards being issued
    daily. It is expected that the system will process around 4 million transactions each day by
    end of 2002.
    In April 1999, the Land Transport Authority of Singapore (LTA) awarded ERG the contract to
    design and develop an integrated smart card ticketing system on five public transport
    operators. The system, which involves 22,000 readers and the issue of 5 million smart
    cards, is one of the largest integrated smart card based transit systems in the world.
    The LTA has also awarded ERG a three-year maintenance contract worth S$15 million
    (A516 million) to support the new system.
    Mr Silvester Prakasam. General Manager of EZ-Link, stated: "The Singapore system
    represents the most advanced and cost-effective ticketing technology which will benefit both
    our operators and patrons. Now that we have established a solid base, we intend to expand
    the system in the coming years beyond public transport."
    ERG'S Managing Director Asia Pacific. Mr Rob Noble. said: "The successful rollout of
    Singapore means that ERGS MASS technology now processes transit transactions in two
    of Asia's major cities - Singapore and Hong Kong. By the end of this year, these sites will
    be processing transactions at the rate of more than 4 billion annually. We are proud to say
    that the Singaporean system is one of the most technologically advanced ticketing systems
    in the world."
    Telephone: 4' 61 8 9173 l IOC Facsimile: - b I 8 9273 1208 Email: [email protected] Internet:
    217 Balcatta Road Ealcatta WA 6021 Australia PO Box 670 Balcatta WA 69 I 4 Australia
    ERG Limitcd ABN 23 009 l I 2 725 a rnembcrofthc ERG Gwue
    02/05 ' 0 2 THU 1 0 : 2 3 FAX m 003
    2 May 2002 e
    ERG Announces Successful Rollout of Singapore
    Smart Card System
    ERG Group
    ERG Group is a world leader in the development and supply of integrated fare management and
    software systems for the transit industry, and for its smart card systems and services. ERG is an
    Australian-based company, listed on the Australian Stock Exchange.
    Land Transport Authority of Shgapore
    The Land Transport Authority (LTA) was inaugurated in September 1995 as a statutory board under the
    Ministry of Transport. LTA spearheads all land transport developments in Singapore, including the
    building of the road network and the development of the rail infrastructure. It is committed to furnishing
    Singapore with a quality and efficient land transport system.
    EZ-Link Pte Ltd, a subsidiary of the Land Transport Authority, was formed on 8 January 2002. EZ-Link
    will expand the use of the ez-link contactless smart card beyond the public transport industry for
    general micro payments.

    PessimistI'm over/Stockhouse/on CAT thread--BK.
    Ive done a lot of research on ERG over the last few months Geoffo, yes it is loaded down in the traditional sense with debt, primarily because of the different accountancy procedures that came in re Enron.
    (Incidentally on June 30th--Austrlalia gets a new of accountancy--see ERG thread)(which may have ramifications there) what I see within the entity is a creative concept that they have thought up in order to expand---simply stated selling their technology into j/v consortiums, in stockmarket terms (re share price--it has been devastating) nevertheless these consortiums they have begun all around the world are growing and can be valued higher---for instance the one in Germany has already had (not listed publically) shares in it sold to another bidder for a higher price. Erg can anytime it wishes sell it's holding at a higher price and bring in physical cash, even after they do that they are still entitled to revenue coming from the consortiums--for twenty years.
    I t has fallen in share price for a number of reasons, the prime reason being perceived bad financials--surely this howver is one of perception, it is merely the way you do the accounts.
    Everything has been written down to zero for instance---to give an example relating to that the JV with ANZ has 23 million dollars in cash in it---this is officially zero, the reality however is different, basically I feel the bad share price is market judgement based in the traditional sense.
    P Fogarty has stated that he expects to be profitabel in the second half and by 2003 certainly so---Huntley's state conservative investors should avoid, that it is in speculative territory---I wouldn't write ERG off---and I wouldn't necessaril;y judge it by it's share price---lets not forget just two weeks ago---in the papers "loyalty points were on their way out" and Catuity had sunk to an all time low since March 29th 2000 of Fibbonaci retracement 3.25.
    With newspapers and stockmarket I find and I'm sure you would agree it is not necessarily the truth they write--they write to sell papers--if you look for example at a recent cutting Ive posted on the Erg thread--called loving dotcoms.
    It has labelled Davnet and Erg together as stocks people should give eup on them.
    The reality of it is if you have recently bought DVT at 3c you are 0.6c in front--with 13 to 15 million in the bank and no debt---and a possible takeover by Farook's Bigshop.
    If you have bought ERG recently as a speculator---everything has been written down to zero and P. Fogarty has stated he expects to get a profit second half and certainly so by 2003 20 million dollars of cost savings have been implemented---EDI Downer shares have largely been sold, still some ERG hasn't sold that are valuable and they get dividends-payable on the 30/4/2002--and while they hold the remainder of EDI Downer in terms of capital gain, the company is outperforming--see recent landing of 470 mill contract by Downer.
    Based on research Ive done, I believe ERG will prosper in the end, they need to manage their growth very carefully, get the cash back to book from various contracts, eliminate debt while still growing worldwide (sounds easy lol) and ofcourse of immediate concern is a resolution to the legal situation pertaing to Sydney and ofcourse the dispute with Downer--One Link---ERG can do it-acknowleged it is either all the way down or all the way up for the entity--high risk speculative in my book--for the above reasons stated, but if P. Fogarty maanges to turn the ship around, it will be the cheapest ERG currently trading that I believe you'll ever get (allowing 5c either way)

    (Voluntary Disclosure:No Position Short Term rating: Long Term Rating:)

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