Australian Stock Exchange

[antat]

InvestorWeb Update - DAVNET on Premium Forum

Fri, 15 Sep 2000 02:16:44 +1200
From:
InvestorWeb <[e-mail]>
To:
<[e-mail]>


DAVNET ON PREMIUM FORUM TOMORROW MORNING

Tomorrow morning at the special time of 8:30am eastern summer time, Robert "Hal" Turner, chief
operating officer of "smart building" Internet telecommunications company Davnet, will be appearing on
the Premium Forum. Last week Davnet reported a $41.9 million net profit after tax for the year ended June
30, which came almost completely from an abnormal gain of $40.03 million. Davnet’s statement of cash
flow shows $35.71 million received from customers, but $64.56 million in cost of those sales, for a net
operating cash outflow of $30.8 million. Free cash flow, defined as cash flow after capital expenditure,
came in at minus $20.8 million.

Earlier this week InvestorWeb today attended a presentation by Turner, at which he said that Davnet was
all about connecting offices to a global network, so that, say, the Hong Kong arm of a global financial
institution can communicate with head office in New York, through an integrated package carried over
the Internet. Turner talks of a "multiple-building aggregation strategy". What he means is that Davnet is
not just creating office networks and providing an Internet service, it is creating a greater network
between offices across the city, across the country and across the world. Right now, he says, Davnet is
competing in a "land grab" on a global scale, to wire-up buildings and "own the customer from the access
level". Davnet announced this week that NTT Communications Corporation, a full-owned subsidiary of
Nippon Telegraph and Telephone Corporation - the world’s largest telco - has taken an option to convert
its 49% stake in Davnet Telecommunications - Davnet’s Australian operating company - into a stake in
Davnet itself. It was a compelling presentation, but we're not convinced. We can't recommend Davnet as
a buy, but what we can do is bring Turner on to the Premium Forum, where you can grill him on Davnet's
business, prospects and financials - or anything else you wish to ask him!
We apologise in advance if this time is inconvenient for members. We are experimenting with different
times for Premium Forum guests, so please bear with us. In the meantime check out our report on Davnet
at: http://www.investorweb.com.au/MB_story_details.asp?ItemNumber=6417

MANY WAYS TO PLAY NRMA
The recent listing of NRMA Insurance Group Limited (NRM) has led to the issue of more than 20 different
warrants over the stock, giving both investors and traders the opportunity to take advantage of the listing
whether or not they received NRMA shares as former members. So if you’re a late entrant, or you have
NRMA shares but would like more, or if you have them but are not sure whether you want them, there is
almost certainly a warrant product that will suit you. Read Stephen Calder's report on the smorgasbord of
NRMA derivative products available. And in the lead-up to the Telstra 2 instalment receipt second
payment deadline, Stephen will report on the products the investment banks will have on the market to
allow T2 holders to roll-over their second payment. Check out the NRMA report at:
http://www.investorweb.com.au/MB_story_details.asp?ItemNumber=6415

EIGHT DAYS TO CONNECT WITH LOCAL TELECOM & INTERNET
The share offer for Local Telecom & Internet Limited (LOC) closes on 22 September 2000. Recent
contact with LOC reveals that a substantial number of applications have now been received, and that
oversubscriptions are continuing to be processed. Investors wishing to apply for shares in the company
are advised to apply now. To read our research report and download a prospectus, please click here:
http://www.investorweb.com.au/float/view_details.asp?ID=81