The PRWIRE Press Releases https:// 2001-10-31T17:08:00Z Secure Videoconferencing Specialist ServicePoint Limited ("SVP") Announces Fully Underwritten Rights Issue To Fund Terrorist Induced Asia Pacific Market Sector Expansion 2001-10-31T17:08:00Z secure-videoconferencing-specialist-servicepoint-limited-quot-svp-quot-announces-fully-underwritten-rights-issue-to-fund-terrorist-induced-asia-pacific-market-sector-expansion Recent research indicates that the Asia Pacific Market for the videoconferencing, web and streaming service provider market will grow from $US41 Million in 1999 to $US1.66 Billion in 2005. For information and interviews about the latest "military strength secure communications" technology and the impact this will have on Australian based suppliers: The sudden huge increase in the demand for videoconferencing communications technology, services and expertise in the Asia-Pacific Market caused by the world wide terrorist induced 'Fear of Flying' - accelerated ServicePoint's announcement of a non-renounceable 1 for 4 Rights Issue, Chairman Andrew Berriman said today. ServicePoint's market leadership in the "secure communications" segment of the videoconferencing market was attracting a lot of attention from defence forces, government departments as well as industry - in Australia, and the entire Asia-Pacific region, Mr. Berriman said. "The proceeds of the Rights Issue will be applied, in the first instance, towards the working capital requirements of the Company arising from the recent growth in the secure video conferencing and defence market, and the establishment of new distribution channels," he said. "ServicePoint has established a unique position as prime contractor for the Federal Government's Defence Service Video Conferencing network, awarded to the Company in a $2.25 million tender in May 2001. We have also signed an exclusive agreement for distribution in Australia of The ViewCASE, a state-of-the-art secure portable video conferencing unit in a briefcase retailing at around $100,000 each, for which the first orders were recently received from the Australian Department of Defence." "The short term regional market potential for The ViewCASE alone is estimated to be in excess of 100 units or $10 million," Mr. Berriman said. "We will shortly announce a new Management structure which will reflect the new business opportunities facing our organisation," he said. "While we are quite able to handle normal growth from our own resources, we felt it prudent to raise extra funds to ensure we can take advantage of whatever opportunities arise in what is an extraordinary market expansion ," he said. The Company has lodged a prospectus with ASIC. The prospectus will be posted to shareholders no later than 12 November 2001. The record date for the issue is 5.00 p.m. (EST) on 7 November 2001. The rights issue is being made only to holders of shares who have addresses in Australia and New Zealand as at the Record Date. The full text of the ASX Announcement now follows: 1 FOR 4 NON-RENOUNCEABLE RIGHTS ISSUE OF ORDINARY SHARES 1. SUMMARY OF ISSUE ServicePoint Limited proposes to make a 1 for 4 rights issue of up to 18,154,774 fully paid shares at an issue price of 4 cents per share. The issue is non-renounceable. If fully subscribed, the issue will raise an amount of approximately $725,000, before expenses. The Chairman and Managing Director of the Company have each given an irrevocable undertaking to take up their full entitlements under the offer and to subscribe for a total of up to 4,711,715 further shares under the offer to the extent that the offer is undersubscribed. Taylor Collison Limited will be an underwriter resulting in the Rights Issue being fully underwritten. Applicants may apply for a number of new shares greater than their entitlement. 2. PURPOSE OF THE ISSUE The proceeds of the Rights Issue will be applied, in the first instance, towards the working capital requirements of the Company arising from the recent growth in the secure video conferencing and defence market, and the establishment of new distribution channels to take advantage of: the Company's position as prime contractor for the Defence Service Video Conferencing network, awarded to the Company in the $2.25 million tender in May 2001; and the exclusive agreement for distribution in Australia of the ViewCase, a secure portable video conferencing unit retailing at around $100,000, for which the first orders were recently received from the Australian Department of Defence. A portion of the funds may also be applied towards a reduction of current debt. The fund raising will put the Company in a better position to take advantage of new business opportunities, as they arise. 3. RIGHTS ISSUE TIMETABLE AND PROSPECTUS The record date for the issue is 5.00 p.m. (EST) on 7 November 2001. The rights issue is being made only to holders of shares who have addresses in Australia and New Zealand as at the Record Date. The Company has lodged a prospectus with ASIC . The prospectus will be posted to shareholders no later than 12 November 2001. The last date for receipt of acceptances and payment of 4 cents per new share will be 5.00 p.m. (EST) on 28 November 2001. 4. DIVIDENDS AND OTHER RIGHTS ATTACHING TO NEW SHARES The new shares issued under the rights issue will rank pari passu in all respects with existing fully paid shares in the Company in respect of future dividends and other rights (such as rights issues and bonus issues). 5. QUOTATION ON ASX Application will be made to the ASX for the new shares offered under the prospectus to be quoted on the ASX. 6. ACCEPTANCES BY DIRECTORS AND UNDERWRITING Two directors of the Company, Chris Pope and Andrew Berriman, have given irrevocable commitments to the Company to take up their full entitlements (representing, in aggregate, $188,469) under the Rights Issue and have agreed to underwrite 4% and 28% respectively of any shortfall in acceptances by other Shareholders. Taylor Collison Limited has agreed to underwrite 68% of any shortfall in acceptances from Shareholders other than Chris Pope and Andrew Berriman. Dated 25 October 2001