Caledonian Targets Broadband Telecommunications Market.

Business Editors

MILTON, QUEENSLAND, AUSTRALIA--(BUSINESS WIRE)--Feb. 21, 2000

Caledonian Pac(CDNX:CDM)

The Board of Directors of Caledonian Pacific Minerals NL ('Caledonian') today announced that Caledonian has entered into heads of agreement to acquire the unlisted broadband access products and services company, iServe Pty Ltd.

The Chairman, Mr David Whitfield said that this marked an exciting opportunity for Caledonian and gives its shareholders the opportunity to become involved in a business that is focussed on the rapidly emerging Broadband market throughout the world and a particular focus on Asymmetric Digital Subscriber Line ('ADSL') technologies.

iServe has a management team with specific expertise in high-speed broadband data and internet access solutions and will seek opportunities in the Australian, Asia-Pacific and global broadband space. iServe has an existing relationship with the worldwide market and technology leader in ADSL technologies, Alcatel's Carrier Data Division ('CDD').

iServe will focus on working with telecommunications carriers and ISPs to provide Alcatel broadband access products and associated services. iServe sees exceptional opportunities in the Asia/Pacific market initially, but expects to broaden the business into other geographic areas in the near future.

iServe owns the rights to the business name Quadtel, and plans to use this as the new listed company name. The domain names Quadtel.com and Quadtel.com.au are also owned by iServe and will be the web addresses.

The Heads of Agreement provide for:

* Caledonian allotting 46,085,005 ordinary shares to acquire iServe Pty Ltd,

* After allotment, iServe shareholders will have 50% of the expanded capital of Caledonian,

* Caledonian changing its name to Quadtel Ltd and carrying on the business interests of iServe,

* The assets of iServe to consist of:

- In excess of $3.0 million in cash,

- Distribution contract with Alcatel CDD for the distribution of its Speed Touch range of products which are capable of delivering high speed broadband data and internet access solutions,

- Offices, staff and facilities across Asia/Pacific including in Sydney and Singapore,

- Key relationships and with major carriers and ISPs across the Asia/Pacific region,

- Contracts with key personnel,

- Ownership of 10 key Internet domain names including "Quadtel.com",

- Comprehensive eCommerce engine and development code for future versions,

* The appointment of additional directors to the Caledonian Board,

* The issue of 8.5 million options to directors and employees,

* The separation of Caledonian's mining tenements from the business of iServe

The ADSL market is anticipated to grow exponentially as business and retail customers access broadband delivery services via the next generation of Internet Access Devices ('NG-IAD'). NG-IAD's such as Alcatel's Speed Touch range are capable of providing a flexible and affordable single point package of high speed integrated services (at a remarkable capacity of up to 8 Megabits per sec) over existing copper links. NG-IADs facilitate fully-featured services to be accessed by millions of small business and residential customers.

iServe provides a range of broadband services including logistics and technical support for Alcatel Speed Touch ADSL products, broadband consulting services for ISPs and carriers, and will soon provide financial services to enable our customers to finance their purchases.

The primary interface to these services is through a proprietary, internally developed eCommerce customer interface. This site will also include a comprehensive information portal for end users and will permit customers to place and track their orders online, as well as being able to book installation and maintenance services.

It will soon be localised for all the countries iServe plans to operate in around Asia-Pacific.

Mr David Ramsay, currently with Alcatel, who has agreed to become the Managing Director of iServe, said:

"ADSL is set to become the de facto standard for high speed Internet access in the future, as it offers end users from 20 to 200 times faster Internet access, as well as offering ISP's and carriers a way to bundle services such as Video on Demand ('VoD'), gaming and Application Service Provider ('ASP') access. Recent studies indicate that the worldwide market for ADSL technology could be worth USD$1.2 billion per year and that the Asia-Pacific region alone has potential for around 5 million users.

"Analysts generally agree that for these reasons, sales of ADSL access products are set to grow exponentially. Alcatel will be able to consolidate its position as market leader with the assistance of iServe, who will provide not only logistics services, but also value added services such as an eCommerce interface/broadband information portal, installation, maintenance and support services.

"iServe demonstrated to Alcatel an understanding of this emerging market, and focus on broadband access products. An organisation of this type is required to work with channel partners, such as ISP's, Telcos, and Original Equipment Manufacturers: iServe will fill this need admirably."

Mr Ivan Hurwitz, Sales Director of iServe said:

"iServe is extremely upbeat about the future of the ADSL Customer Premises Equipment (CPE) business.

"We expect to initially become Asia-Pacific's leading provider of broadband access logistics solutions, with expansion plans for other places around the globe.

"Our analysis indicates that the potential of this market is enormous due to the explosion of applications requiring high-speed Internet access solutions, and the value of high-speed access to consumers and business.

"Alcatel is a technology and market leader, with over 60% market share for broadband products, so we feel very confident that we can build on this success together with Alcatel."

Mr Terry O'Leary, Managing Director of Caledonian, drew attention to the extensive experience of Caledonian's Executive Chairman Mr David Whitfield in telecommunications, and as a director of Davnet Limited and as a former director and financial adviser to CorpTel Pty Ltd until its sale to AAPT Ltd.

He said that an Information Memorandum would be prepared for shareholders to consider at an Extraordinary General Meeting to be announced in the near future.

Sarah J L Morris, Company Secretary

MEDIA RELEASE ATTACHED MEDIA RELEASE

Caledonian Targets $2 Billion Broadband Internet Access Market

Caledonian Pacific Minerals NL has positioned itself to take advantage of the fast growing BROADBAND Internet access market by announcing its intention to acquire iServe Pty Ltd.

iServe provides carrier, ISP and retail customers across the entire Asia/Pacific region with broadband access products through its partnership with market leading vendor Alcatel's range of SP high speed ADSL access solutions.

The Chairman of Caledonian Pacific Minerals, Mr David Whitfield, said today that the focus on the ADSL market across Asia/Pacific would allow Caledonian to position itself ideally in the explosive market for high speed broadband Internet solutions across the region.

"Recent studies estimate that the worldwide market for this technology to be worth close to A$2 billion and is already starting to take off in many countries in the Asia/Pacific region with rollouts now in place in Singapore, Taiwan, New Zealand and Korea and with rollouts due in 2000 in Australia, India and Malaysia amongst others" he said.

"ADSL will revolutionise Internet access for consumers and business alike. It provides up to 8 Megabits per second communications to the Internet, around 200 times faster than today's dial up access approach."

The Marketing Director Asia/Pacific for Alcatel's carrier data division, Mr David Ramsay, who has agreed to become the managing director of iServe said that ADSL was set to become the de facto standard for high speed Internet access. Mr Ramsey said that as Alcatel holds a dominant position in the market for ADSL equipment, iServe is ideally positioned to grow its business in partnership with Alcatel across the Asia/Pacific region.

iServe currently has offices and facilities in Singapore and Sydney, with plans to open offices in Malaysia, Taiwan, Korea and other Asian countries in CY2000.

Issued by: Caledonian Pacific Minerals NL

303 Coronation Drive

MILTON QLD 4064

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