Forum Archive Index - August 2000

["Christian Mair" <product@adidas-ep.co.nz>]

Document date: Mon 14 Aug 2000 Released time: Mon 14 Aug 2000 10:01:46
Document No: 182657  Document part: A
Market Flag: Y
Classification: Asset Disposal

IT CAPITAL LIMITED                            2000-08-14  ASX-SIGNAL-G

HOMEX - Perth                                                         

+++++++++++++++++++++++++
"DEMONSTRATES FURTHER SUCCESS IN POSITIONING AUSTRALASIAN COMPANIES 
FOR GLOBAL EXPANSION"

Listed Venture Catalyst  IT Capital Limited (NZSE; ITC; ASX; ITP; 
USA; ICALF) today announced it has reached agreement to sell its 
stake in exo-net International to Solution 6 Holdings Ltd (ASX, SOH) 
for approximately A$9.9 million or NZ$12.7 million - NZ$9.6 million 
in cash and NZ$3.1 million in Solution 6 stock.

The sale comes after IT Capital acquired 35 percent of exo-net for 
NZ$1.5 million through a series of investments beginning in June 
1999.  Under the terms of the definitive agreement, e-business 
solutions provider, Solution 6, will acquire 100 percent of exo-net 
and IT Capital will receive its 33.2 percent (on a fully diluted 
basis) of the sale proceeds from this fast-growing e-commerce 
software developer.  Settlement is expected to occur on 18 August 
2000.

Vendors of the remaining shares include exo-net partners David McKee 
Wright, Maurice Bryham and Mark Loveys along with the company's 
Australian and Singaporean partners.

IT Capital Chief Executive Officer and exo-net International 
Chairman, Jeff Dittus said "the exo-net sale was IT Capital's second 
successful exit following earlier realisation associated with BMC 
Media in January 2000.  Together these exits have generated a 1,259 
percent return on invested shareholder funds as we converted NZ$1.8 
million of capital into NZ$13.6 million.

"These transactions are evidence of our ability to successfully grow 
Australasian companies while generating exceptional returns for our 
shareholders," Mr Dittus said.

"The proceeds from this sale further strengthen our financial 
position and ensure ITC's near-term profitability," he said.

"IT Capital provided exo-net with more than just investment 
capital," said David McKee Wright, Chief Executive Officer and 
co-founder of exo-net.

"IT Capital's global network of strategic partners opened doors to 
pave the way for exo-net to expand its activities into new markets," 
Mr McKee Wright said.

"With ITC's help, exo-net set-up offices in Singapore, where the 
Government is actively embracing e-commerce, and Australia where 
exo-net 3000, a fully web-enabled e-commerce accounting system is 
meeting the needs of Australian businesses under the GST scheme 
implemented in July this year," he said.

"IT Capital's contribution to exo-net included strategic business 
development and international marketing expertise, and services such 
as legal advice and HR assistance."

IT Capital Executive Vice President, Simon Brown, said "IT Capital 
focuses on New Zealand and Australian companies whose primary 
business is the development and commercialisation of proprietary 
technology with global applications.

"exo-net met IT Capital's investment criteria because it had a 
proven management team, its software was in the 'sweet spot' of 
e-infrastructure solutions and it offered a leading-edge technical 
solution with unrealised potential in Australia, Asia and the United 
States," said Mr Brown.

"After making an initial investment in mid 1999, IT Capital 
immediately set about developing a close working relationship with 
exo-net and became a key business advisor," he said.

"exo-net is now ready to embark on the next phase of its development 
and we strongly support exo-net's new owner, Solution 6 - the 
leading provider of practice management, client accounting and 
taxation software services in Australia, New Zealand, South Africa 
and the UK," Mr Brown said.

Solution 6, a successful company with a distinguished brand and 
strong global distribution channels, will enable exo-net to expand 
its international client base.  The Australian-based firm will 
acquire exo-net's business operations in New Zealand, Australia and 
Singapore including intellectual property, technology and software 
products.

Mr Brown said "exo-net will provide Solution 6 with a proven 
management team of technologists and marketers who have a track 
record of developing and commercialising technology.  There are 
clear synergies between exo-net and Solution 6 - both focus on 
delivering fully integrated end-to-end e-business products to the 
SME market and both are tapping into new Application Service 
Providers (ASPs)."

IT CAPITAL COMPANY BACKGROUND

The region's leading venture capital fund, IT Capital focuses on 
investing in New Zealand Australia and Chinese based e-commerce 
companies with the intention of transplanting them into larger 
markets, principally the United States.

Addressing the funding gap that inhibits most innovative 
Australasian firms, IT Capital provides both early stage funding and 
management expertise that are not readily available in local markets.

Applying a portfolio approach, the Company allows investors to 
diversify risk and participate in e-commerce opportunities, thereby 
giving public market investors access to successful businesses at 
private market prices.  IT Capital's international network of 
venture partners and technology companies accelerate the global 
transfer of technology.

More information on IT Capital is available on the web at 
http://www.itcapital.net
More information on Exo-net is available on the web at 
http://www.exo-net.com.

FOR FURTHER INFORMATION, PLEASE CALL:

Jeff Dittus
jdittus@itcapital.net

1 610 645 4519 Business
1 610 513 4178 USA Mobile
+64 21 634 999 GSM Mobile

Simon Brown
sbrown@itcapital.net
64 9 375 2602 Business
64 21 628 425 Mobile

Julian Nixon
jnixon@hillandknowlton.com
64 9 367 6373 Business
64 21 6555 98 Mobile