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QPSX LIMITED 2002-11-27 ASX-SIGNAL-G

HOMEX - Perth

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Technology commercialisation company QPSX Ltd (ASX: QPX) today
announced that the Munich District Court had ruled favourably on key
issues in QPSX Europe GmbH's court action against Siemens and
Deutsche Telekom.

The Court today rejected the formal objections of the defendants to
the standing of QPSX Europe GmbH, overruled the defendant's requests
to discontinue the action and opened the door for the case to proceed
to the "expert evidence stage" of the proceedings, in which an
independent technical advisor would assist the court in assessing the
nature of the infringement of QPSX's patented technology.

In April, 2001, QPSX Europe GmbH, a wholly owned subsidiary of QPSX
and European licensee, filed a DM125 million (A$115 million) writ
against Siemens and Deutsche Telekom for infringement of QPSX's
patent covering the Segmentation and Reassembly ('SAR') technology.
The lawsuit is an integral part of a wider licensing program launched
by QPSX Europe, targeting negotiations with leading European
manufacturers and users of Asynchronous Transfer Mode ("ATM")
telecommunications equipment.

"We are delighted that the Court has affirmed the position of QPSX
Europe GmbH as a valid plaintiff and active licensor of the German
SAR patent", QPSX Europe GmbH General Manager Matt Callahan commented
this morning, "we can now concentrate on the real issue of
infringement and accelerate the exploration of the defendant's
unlicensed use of the technology".

The decision specifically overrules voluminous arguments put forward
by Siemens and Deutsche Telekom that the case should be immediately
dismissed. Accordingly, the Court is expected to proceed to appoint a
technical expert following submissions to the court on January 10th
2003. The expert would explore the use of the SAR technology in
equipment manufactured by Siemens as well as equipment used by
Deutsche Telekom to support its entire network in Germany and more
widely in Europe.

"The achievement of this milestone is not only significant for the
German litigation", QPSX Europe GmbH General Manager Matt Callahan
commented this morning, "it indicates to other potential licensees
the benefits of taking an early strategic licence in order to gain a
competitive advantage".

In July 2001, the company announced the first SAR licensing deal,
with European telecommunications giant Ericsson. The agreement
specified a royalty bearing license for QPSX technology, including
the SAR patent. Negotiations with Ericsson continue with a view to
expanding the coverage of a SAR licence beyond the products covered
by the initial agreement to the wider Ericsson ATM product portfolio.

"QPSX has demonstrated its resolve and capacity in pursuing patent
enforcement in conjunction with a wider licensing program and we will
continue to ensure that wherever possible negotiations are amicable
and not unduly drawn out," Mr Callahan said.

QPSX has engaged German Frohwitter Law Firm, which specialises in all
aspects of intellectual property, including procuring, enforcing and
licensing of patents in Europe and the United States. In conjunction
with QPSX Europe GmbH management and it's licensing partners,
Frohwitter's intellectual property lawyers coordinate and direct the
patent litigation and prosecution.

QPSX has minimised its exposure to the costs and risks associated
with litigation by sourcing up to US$4 million of funding from Lloyds
to support the action. This amount is considerably higher than the
anticipated costs of the current litigation. In addition, a US
venture capital partner is contributing 25% of QPSX costs.

QPSX selected Germany on legal and financial advice to launch its SAR
licensing program. However, Germany and the UK represent only 10% of
the world market. A second licensing phase in North America, with a
market some eight times larger than the initial market addressed by
QPSX, is currently being planned.

QPSX invested over $29 million in cell switch technology which paved
the way for the adoption of its patented SAR technology in the
International Telecommunications Standard (IEEE 802.6) - a first for
an Australian company. Subsequently, SAR became embedded in the
broadband Asynchronous Transfer Mode ("ATM") communications protocol.

"SAR technology is fundamental to broadband telecommunications. It
provides a foundation for ensuring quality of service for Internet
communications. QPSX's intellectual property is utilised in core
telecom switch infrastructure over which the majority of Internet
traffic flows," Matt Callahan, QPSX Europe GmbH General Manager said.

QPSX

QPSX's focus is the profitable commercialisation of a range of
technologies on a global basis. QPSX works with research institutions
and companies across Asia Pacific to identify and then capture value
in such technologies. This value is realised by QPSX and its
licensees and commercial partners through products that shape the
future within their global markets.

FURTHER INFORMATION:

Graham Griffiths, CHIEF EXECUTIVE OFFICER, QPSX Ltd
Tel: 08 9381 9518
Email: [email protected]
Websites: http://www.qpsx.com