PERTH, Australia, June 21, 2000 (PRIMEZONE) -- New Tel Limited (Nasdaq:NWLL) CEO Peter Malone today advised the Company's China Portal is now operational with initial generic lifestyle content. The website address is www.nihao2000.com.
"The portal going live is the first step in our plans to develop a leading Chinese Internet business" said Mr Malone.
At a Company Board meeting this week, Directors confirmed the program for New Tel's China Internet Project, and the intention to raise AUD$200 million (US$121 million). Full details will be announced on completion of the independent experts report that is currently underway as required under Australian Corporations Law.
New Tel, through its joint venture partner Xinhua, is working with a number of government owned enterprises in China on the New Tel Internet Project. The project covers the development of a fully integrated business, involving Internet Service Provider ("ISP") operations, Internet Content Provider ("ICP") operations and a Chinese language Portal called nihao2000.com
The Portal will be closely linked to the ISPs and ICPs. New Tel plans to provide its ISP customers access to a broad range of Chinese content through its partnership with Xinhua by developing a number of websites that focus on information collection and dissemination across a range of industries. In addition, New Tel is also assessing other web-related opportunities in Australia, Hong Kong and the US for wider generic lifestyle content.
Revenues will be derived from online advertising, business-to-business e-commerce transactions, business-to-consumer e-commerce transactions, online sales of proprietary content and subscriptions.
The Company also confirms it has lodged a non-renounceable rights issue prospectus in Australia for approximately 5.5 million shares further to a commitment made to shareholders in December 1999. Under the prospectus, shareholders will be offered one ordinary share for every 25 ordinary fully paid shares held at an issue price of AUD$1.20 per new share. This will bring the total cash funds raised this year to AUD$86 million.
About New Tel: 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 an emphasis on serving Asia, particularly China. New Tel is currently involved in establishing a Chinese Internet Service Provider (ISP) and Chinese/English language Portal.
This announcement contains certain forward-looking statements that are subject to risks and uncertainties. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from those currently anticipated as a result of a number of factors, including, but not limited to, the risks and uncertainties pertaining to business operations in China.