UNION CAPITAL LIMITED
Update of Union`s Technology Investments
Document date: Thu 08 Jun 2000 Released time: Thu 08 Jun 2000 13:14:33
Document No: 134961 Document part: A
Market Flag: Y
Classification: Progress Report - Other
UNION CAPITAL LIMITED 2000-06-08 ASX-SIGNAL-G
HOMEX - Brisbane
+++++++++++++++++++++++++
TECHNOLOGY INVESTMENTS UPDATE:
* IDENTIKEY:
The Directors of Identikey have advised Union that they intend to
proceed with the planned IPO. However, given the current unsettled
market conditions the timing of the IPO will be reviewed by the Board
of Identikey on a monthly basis.
The first Board meeting of Identikey was held on 1st June 2000.
Union is impressed with the highly effective Board of Directors that
Identikey have appointed under the leadership of Chairman the
Honourable Jeff Kennett. Other directors appointed are Mr Mark
Kefford (CEO), Mr Peter David (COO), Mr Alan Beanland, Mr Adrian
McCullagh, Mr Hans-Rudolph Moser and Mr Rob Murdoch. Identikey feels
that the strengths of its board members will play a significant role
in the ongoing development of the company.
Identikey have recently taken positive steps to increase their
marketing efforts globally, which is being reflected in increasing
sales. Product demonstrations and participation at trade shows have
commenced in Asia in association with business partners, Byte Power
and Computer Associates. An effective sales force has been assembled
in Europe, under Mr Peiter Versteeg, who has been appointed as
European Sales Manager. In the US, sales personnel have been secured
and an office has been established under the management of Mr Dennis
Firenze. Sales in Australia have also improved significantly in the
past two months.
The Identikey web site (www.identikey.com) has been enhanced to
include Mandarin to the existing German and English versions. A Dutch
version is expected to be added in the next few months.
* RADIOCITY
"RadioCity" have advised Union that they have joined forces with
Microsoft Australia to promote low cost usage of the Internet for
audio and video netcasting. The partnership allows RadioCity to be a
featured content provider for the new Australian Media guide of the
Microsoft Windows Media Player 7, supplying streamed video. RadioCity
see the teaming with Microsoft as raising the community awareness of
the business advantages of the emerging industry presently referred
to loosely as "Streaming Video, Internet Television and/or
Webcasting".
The association with Microsoft demonstrates RadioCity's emerging
position as an Australian Market leader in this fast growing
industry. This has been achieved from just one office in Brisbane.
RadioCity is targeting to establish additional offices in Sydney and
Melbourne, from where 80% of the Australian market is generated.
Union currently holds a 25% equity interest in RadioCity and to
enable the expansion to take place, has agreed to provide further
funding to RadioCity. The funding will take the form of two
convertible notes, which shall involve a program of staged monthly
drawdowns, that will be continued provided RadioCity meets certain
business targets agreed with Union by the due date each month.
The first Convertible Note will be for $1.8million, which if
converted into equity will increase Union's holding to 53.125% of the
total equity of RadioCity. A second Convertible Note of $1.2 million
will be made available subject to RadioCity meeting certain other
business targets by the time the first Convertible Note is fully
drawn. If the second note is converted into equity it will increase
Union's holding to 62.5% of the total equity of RadioCity.
* SHOPAHOLIC
Shopaholic and Union have mutually agreed not to continue the
investment opportunity previously announced, whereby Union would earn
a 32.5% equity interest in Shopaholic in return for an amount of
$A2.5 million which Union proposed to inject into Shopaholic. This
money is now available for other technology investments.
* MARKETING MANAGER
In recognition of the fundamental need that all technology
investments work in a highly competitive market and need to maximize
sales, Union has added to its technology advisory team Mr Stephen
Kress. Stephen is an American citizen who has considerable experience
in marketing technology products and companies in the U.S.A, Japan
and Germany. His global marketing experience will add to the strong
"Union Technology Team" also comprising Mr Nick Conway (Technology
Manager, who has strong technology skills) and Mr Peter Sauerberg
(CFO, with excellent corporate skills). This team has the role of
selecting, monitoring and nurturing all Union's present and future
investments in technology. As a result, evaluation of other
investments continues.
R Murdoch
MANAGING DIRECTOR
---
CHECKIT
Update of Union`s Technology Investments
Document date: Thu 08 Jun 2000 Released time: Thu 08 Jun 2000 13:14:33
Document No: 134961 Document part: A
Market Flag: Y
Classification: Progress Report - Other
UNION CAPITAL LIMITED 2000-06-08 ASX-SIGNAL-G
HOMEX - Brisbane
+++++++++++++++++++++++++
TECHNOLOGY INVESTMENTS UPDATE:
* IDENTIKEY:
The Directors of Identikey have advised Union that they intend to
proceed with the planned IPO. However, given the current unsettled
market conditions the timing of the IPO will be reviewed by the Board
of Identikey on a monthly basis.
The first Board meeting of Identikey was held on 1st June 2000.
Union is impressed with the highly effective Board of Directors that
Identikey have appointed under the leadership of Chairman the
Honourable Jeff Kennett. Other directors appointed are Mr Mark
Kefford (CEO), Mr Peter David (COO), Mr Alan Beanland, Mr Adrian
McCullagh, Mr Hans-Rudolph Moser and Mr Rob Murdoch. Identikey feels
that the strengths of its board members will play a significant role
in the ongoing development of the company.
Identikey have recently taken positive steps to increase their
marketing efforts globally, which is being reflected in increasing
sales. Product demonstrations and participation at trade shows have
commenced in Asia in association with business partners, Byte Power
and Computer Associates. An effective sales force has been assembled
in Europe, under Mr Peiter Versteeg, who has been appointed as
European Sales Manager. In the US, sales personnel have been secured
and an office has been established under the management of Mr Dennis
Firenze. Sales in Australia have also improved significantly in the
past two months.
The Identikey web site (www.identikey.com) has been enhanced to
include Mandarin to the existing German and English versions. A Dutch
version is expected to be added in the next few months.
* RADIOCITY
"RadioCity" have advised Union that they have joined forces with
Microsoft Australia to promote low cost usage of the Internet for
audio and video netcasting. The partnership allows RadioCity to be a
featured content provider for the new Australian Media guide of the
Microsoft Windows Media Player 7, supplying streamed video. RadioCity
see the teaming with Microsoft as raising the community awareness of
the business advantages of the emerging industry presently referred
to loosely as "Streaming Video, Internet Television and/or
Webcasting".
The association with Microsoft demonstrates RadioCity's emerging
position as an Australian Market leader in this fast growing
industry. This has been achieved from just one office in Brisbane.
RadioCity is targeting to establish additional offices in Sydney and
Melbourne, from where 80% of the Australian market is generated.
Union currently holds a 25% equity interest in RadioCity and to
enable the expansion to take place, has agreed to provide further
funding to RadioCity. The funding will take the form of two
convertible notes, which shall involve a program of staged monthly
drawdowns, that will be continued provided RadioCity meets certain
business targets agreed with Union by the due date each month.
The first Convertible Note will be for $1.8million, which if
converted into equity will increase Union's holding to 53.125% of the
total equity of RadioCity. A second Convertible Note of $1.2 million
will be made available subject to RadioCity meeting certain other
business targets by the time the first Convertible Note is fully
drawn. If the second note is converted into equity it will increase
Union's holding to 62.5% of the total equity of RadioCity.
* SHOPAHOLIC
Shopaholic and Union have mutually agreed not to continue the
investment opportunity previously announced, whereby Union would earn
a 32.5% equity interest in Shopaholic in return for an amount of
$A2.5 million which Union proposed to inject into Shopaholic. This
money is now available for other technology investments.
* MARKETING MANAGER
In recognition of the fundamental need that all technology
investments work in a highly competitive market and need to maximize
sales, Union has added to its technology advisory team Mr Stephen
Kress. Stephen is an American citizen who has considerable experience
in marketing technology products and companies in the U.S.A, Japan
and Germany. His global marketing experience will add to the strong
"Union Technology Team" also comprising Mr Nick Conway (Technology
Manager, who has strong technology skills) and Mr Peter Sauerberg
(CFO, with excellent corporate skills). This team has the role of
selecting, monitoring and nurturing all Union's present and future
investments in technology. As a result, evaluation of other
investments continues.
R Murdoch
MANAGING DIRECTOR
---
CHECKIT
