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BigAir Group Ltd delivers strong half-year growth in revenues and gross profit

  • 31 March, 2006 10:30

<p>SYDNEY, Australia - March 31st, 2006 - BigAir Group Limited (ASX:BGL) announced today its sales revenues had increased by 1321% to $2.9 million in the Half Year ended December 31 2005. During this period the Company acquired Veritel Wireless and also acquired Ozemail’s iBurst customer base. It also lodged its Prospectus for listing on the ASX.</p>
<p>BigAir Financial Highlights include (comparison with Half Year ending Dec 31 2004):
· Sales Revenue UP by 1321% to $2.9 million
· Gross Profit UP by 799% from $93,398 to $839,701</p>
<p>Mr Tony Tobin, Chairman of BigAir said, "The acquisition of Veritel Wireless in July and the further acquisition of Ozemail’s iBurst wireless subscribers in October have increased our overall subscriber numbers and revenues. We are now well positioned to be a leading wireless broadband supplier to the business market. We believe we are approaching breaking even in EBITDA which is an important milestone for a start up business.”</p>
<p>The overall EBITDA loss for the Half Year was $363,344. This includes $218,318 in costs incurred during the period relating to the acquisition of new customers which would typically be capitalised and amortised over the expected duration of the customer’s contract. The company has adopted a more conservative approach based on the Urgent Issues Group (UIG) recent guidelines and has expensed these costs each month rather than deferring or capitalising them.</p>
<p>The EBITDA loss reduced by 59% versus the previous corresponding period for the combined BigAir and Veritel businesses. If the customer acquisition costs are excluded the improvement is 84%.</p>
<p>BigAir is the only Australian wireless provider to offer a complete range of high capacity fixed, portable and mobile wireless broadband services. Wireless provides an excellent opportunity for Australia to boost its national broadband penetration rates and strengthen its position in the global digital economy quickly and cost effectively.</p>
<p>Mr Jason Ashton, CEO of BigAir said, “We are happy with both our customer revenue growth and our improving profitability given all the strategic activities undertaken during the period. We not only expanded our Sydney wireless network by more than fifty per cent, we also made two acquisitions and lodged our Prospectus with the ASX to raise new equity of $7.5 million.”</p>
<p>“As we roll out our high-speed wireless infrastructure into the other capital cities, we will be offering Internet Service Provider’s and Carriers a cost-effective alternative network for providing last mile access to their customers. This last mile network is suitable for both high-speed data and Voice over IP (VOIP) and is fast becoming an attractive alternative to copper given the significant uncertainty surrounding ULL pricing.” [ULL stands for Unconditioned Local Loop and it refers to the copper line that Carrier’s must lease from Telstra in order to deliver traditional broadband services such as ADSL.]</p>
<p>BigAir lodged its Prospectus with ASIC on the 20 October 2005 with an expectation of listing on the ASX in December 2005. Due to circumstances outside of its control the listing was delayed. As a result of this delay the Company’s stated plans to expand its sales and marketing activities with the funds raised is delayed until completion of the listing which is now expected to take place in early April 2006.</p>
<p>About BigAir Group Limited
BigAir is a Licensed Telecommunications Carrier and infrastructure based ISP rolling out its own broadband network across Sydney, with plans to rollout in to other capital cities, using carrier-grade high-speed wireless equipment. BigAir is able to offer a range of communication solutions including high-speed symmetric broadband from 2M to 100M, Layer 2 and VPN services, hosting and co-location of servers in secure data centre environment, and more recently business-grade Voice over IP (VoIP) services. BigAir has end-to-end ownership of its fixed wireless infrastructure and also has wholesale access to the other leading wireless networks including iBurst and Unwired. BigAir is able to offer a comprehensive range of advanced wireless communications services to Australian businesses. For more information, please visit www.bigair.com.au</p>
<p>Media Enquiries:
Michelle Zahra
Porter Novelli
02 8424 8500
mzahra@porternovelli.com.au</p>
<p>Investor Relations:
Jason Ashton
BigAir Group Limited
02 9993 1316
jason@bigair.net.au</p>
<p>For information regarding the BigAir Group Limited IPO:
Matt Storey
BBY Limited
02 9226 0079
mns@bby.com.au</p>

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