New Tel (fka NWLL)

[101Dahlias]

Press Release
http://biz.yahoo.com/prnews/000919/new_tel_sa.html

Tuesday September 19, 3:47 pm Eastern Time

SOURCE: New Tel Limited

New Tel Limited Announces Year-End Results and Five Hundred Percent Increase In Sales Revenue
PERTH, Australia, Sept. 19 /PRNewswire/ -- New Tel Limited (Nasdaq: NWLL - news) today announced its year-end results for the year ending June 30, 2000. New Tel's CEO Peter Malone said, ``New Tel made substantial progress in its move to become a global telecommunications and Internet group, particularly with the commencement of operations of the Company's Australian telecommunications carrier business on July 1, 1999, and the development of the Company's China Internet Project.''

Highlights of the year included:


* Over 500 percent increase in sales revenue;
* Almost 500 percent increase in assets to AU$103 million
(US$55.77 million);
* Cash reserves of AU$63 million (US$34.11 million);
* Achievement of over 35,000 customers in the first year of telecom
operations;
* Completion of a high technology satellite network linking New Tel's
Sydney switch facility and Perth's satellite earth station with China;
* Commencement of the development of a leading Internet business in China
in conjunction with Xinhua;
* EBITDA of -AU$15 million (-US$8.12 million) consistent with the
establishment of New Tel's new telecommunications business during the
year and the development of the China Internet Project.


New Tel's year-end financial results reflect initial set up costs for the establishment of the Company's telecommunications carrier business, which commenced operations on July 1 of 1999, including network infrastructure, administrative, billing, financial and recruitment expenses, as well as the normal day to day operating expenses.

The Company secured 35,000 customers since commencement of operations. This core customer base is generating over AU$1 million (US$545,100) in revenue per month and New Tel is now gearing up advertising and marketing programs to grow the Company's core business.

In the past year New Tel focused on two key business areas, each of which are providing solid revenue growth streams for the Company: international telephony services and mobile calling services.

The long distance international telephony service division is strong, particularly the Australian customer base calling into the China region. New Tel plans to continue development of this market and other selected destinations, with the capacity to greatly expand the services utilizing its switch facility.

The mobile services division is proving to be an equally strong value driver for the Company, with the potential to gain solid market share in this rapidly growing market. The mobile phone services market is highly competitive, however New Tel has a competitive wholesale cost structure and the sector continues to provide New Tel with strong profit margins. The Company expects to gain additional revenue through fixed wire to mobile calls.

These areas are providing a solid foundation for the Company's business model, and are enabling the Company to target multiple specialized community groups. Targeting these community groups allows the Company to cross-sell services amongst different customer bases. In addition, New Tel will be introducing local calls and ISP services shortly, providing further revenue sources.

During the year, New Tel completed the construction of its international gateway switch and satellite earth station facilities. The Company commenced initial operations based on switching traffic to China and located its first carrier international gateway switch in Sydney. The Siemens EWSD carrier grade switch connects to gateway switches in China by dedicated satellite links.

New Tel also entered into several Interconnect agreements with other Australian based carriers and is currently progressing formal negotiations to allow direct connection to the Australian PTSN.

Through its China Internet Agreement with Xinhua signed in November 1999, New Tel has commenced structuring, financing and development of a leading Internet Portal and Service Provider business in conjunction with official Chinese Government agencies.

Under the agreement between New Tel and Xinhua, Xinhua will provide access to the Chinese Internet market through a number of joint ventures, together with future opportunities, in exchange for shares in New Tel. In addition, New Tel intends to raise AU$200 million to develop and commercialize the existing joint ventures and other opportunities in the future.

New Tel will acquire a company that provides technical and other value added services to the joint ventures for which it will receive fees. New Tel will also acquire a portal business that will have access to the content of Internet Content Provider (ICP) joint ventures together with access to the subscribers to the ISP business. The portal will be a significant revenue source in its own right.

Full details of the Internet Project will be included in the Information Memorandum and Independent Experts' report to shareholders to be announced upon completion of the final due diligence review that is currently underway.

In the mobile data communications products area, New Tel continued to penetrate the courier and transport markets. As previously announced, New Tel is considering the public listing of this subsidiary during the second half of the current fiscal year.

During the past year almost 50 million shares were issued by New Tel adding AU$89million (US$48.19 million) to the Company's cash base. The Company has also announced its intention to raise an additional AU$200 million through the placement of shares and/or American Depositary Receipts as part of the China Internet Project.

In February, New Tel's subsidiary Advanced Engine Components Limited (AEC) listed on the Australian Stock Exchange. The public offering was three times oversubscribed - reflecting the market's recognition of the unique worth of the computerized engine technology developed over the past decade. New Tel currently owns approximately 85% of AEC and its investment is valued at over AU$40 million (US$21.66 million).

In summary, New Tel is in a strong financial, operational and strategic position. The Company has over AU$100 million in cash and liquid assets and a developing revenue base. The Board of Directors fully expects that current business strategies will create even more shareholder value over the coming financial year.

New Tel Limited is a rapidly growing Australian telecommunications company listed on the Australian and NASDAQ stock exchanges. New Tel launched operations July 1, 1999 and provides national, international and mobile telephony and data services with emphasis on serving Asia, particularly China.

Exchange rates for September 18, 2000: US$1=AU$0.5415.

Contacts: Peter Malone New Tel Limited Tel. [phone]
Anne McBride The Anne McBride Co. Tel. [phone]




New Tel Limited:
Consolidated Profit and Loss Account, (Equity Accounted,) in Australian
Dollars: AU$0.5415=US$1

Year end Year end
June 30, June 30,
2000 1999
Sales or
equivalent operating revenue 6,331 1,052
Other Revenue 5,012 3,656
Total Revenue 11,343 4,708
Operating Profit (Loss)
before abnormal items and tax (19,083) (5,985)
Abnormal items before tax (1,581) 0
Operating Profit (Loss) before tax (17,502) (5,985)
Less Tax (1,039) 488
Total Operating Profit (Loss)
and extraordinary items after tax (16,463) (5,497)
Total Available for appropriation (38,255) (22,139)
Retained Profits
(Accumulated Loses) (38,255) (22,139)

New Tel Limited:
Consolidated Balance Sheet in Australian Dollars: AU$0.5415=US$1

Year end Year end
June 30, June 30,
2000 1999
CURRENT ASSETS
Cash 63,359 7,751
Receivables 2,909 421
Investments 9,189 1,648
Inventories 400 493
Other 654 371
Total Current Assets 76,511 10,684

NON CURRENT ASSETS
Receivables 15 47
Investments in associates 0 0
Other investments 463 0
Inventories 0 0
Other property, plant and 0 0
equipment 6,054 1,078
Intangibles 13,517 10,353
Other - China Internet Project 6,783 0
Other 135 106
Total non current assets 26,967 11,584
Total Assets 103,478 22,268

CURRENT LIABILITIES
Accounts Payable 6,045 1,663
Borrowings 418 42
Provisions 320 150
Other 59 2,276
Total current liabilities 6,842 4,131

NON CURRENT LIABILITIES
Accounts Payable 0 0
Borrowings 2,131 0
Provisions 112 1,078
Total non current liabilities 2,243 1,078
Net Assets 94,393 17,059

EQUITY
Capital 132,535 39,202
Reserves 29 210
Retained Profits
(accumulated losses) (38,255) (22,139)
Total Equity 94,393 17,059

SOURCE: New Tel Limited