goconect, die Zukunft hat begonnen

JOINT MEDIA RELEASE of GCN and SSI

India’s Largest Media Group to adopt GoConnect’s GoTrek IPTV
technology
MELBOURNE / NEW DELHI - 23 September 2005
The Board of Directors of ASX listed GoConnect Ltd (“GoConnect”) and
Times Internet Ltd are pleased to advise that GoConnect’s commercial
relationship with Times Internet Ltd of India to market GoConnect’s m-Vision
mobile video services, has now been extended to include GoConnect’s
GoTrek IPTV (Internet Protocol TV) platform. The extension will see the
BollywoodZone TV video channel also offered to fixed line Internet users and
be marketed by Times Internet Ltd to its vast customer base. With GoTrek,
subscribers will be able to join the video service easily simply by downloading
the GoTrek software so that within 5 to 10 minutes, they will have the service
live.
At present, GoConnect and Times Internet Ltd deliver domestic video content,
branded as BollywoodZone TV to the mobile users on a subscription basis.
The extended relationship will see BollywoodZone TV deliver to the fixed line
Internet market, thus tapping into a vast existing audience.
Sanjay Trehan, Head of Broadband, Times Internet Ltd, said, “India has an
Internet population of about 40 million users. With GoConnect’s GoTrek IPTV
being able to deliver TV quality video to both dial-up and broadband users in
the same TV quality, our IPTV target market is accordingly very substantial.
GoTrek enables us to accelerate our strategy on IPTV and delivers an
interactive media player that meets the company’s online multimedia agenda.
We will work towards creating a significant revenue stream for both
GoConnect and our company”.

FINANCIAL POSITION

Whilst pursuing its online media strategy, the Consolidated Entity, will continue to access new capital as and when required. Since the end of the reporting period, new capital of $230,000 has been raised by way of the placement of 2,300,000 shares, adding to working capital and to finance a number of major projects. The Consolidated Entity has also just received a notice from Mobile Media Services S.A. exercising options for
4,750,000 ordinary shares at 7 cents each. The new shares will be issued after the proceeds of $332,500, being remitted, is received.
The Consolidated Entity experienced operating losses and negative operating cash flows during the period ended 30 June 2005. The continuing viability of the Consolidated Entity and its ability to continue as a going concern and meet its debts and commitments as they fall due is dependent on it being successful in achieving cash inflow from media revenue including from various video subscription channels, advertising, sponsorships,
and licensing of its technologies. If required, the Consolidated Entity should be able to access new capital to finance its operations until it is operationally cash positive. The directors believe that the Consolidated Entity will be successful in the above matters and have prepared the financial report on a going concern basis.

The adoption of Australian International Financial Reporting Pronouncements (AIFRPs) will be first reflected in the Consolidated Entity’s financial statements for the half-year 31 December 2005 and year ending 30 June 2006. Changes in accounting policies resulting from the adoption of AIFRPs are not expected to result in any material impact to future operating results to be reported.