USC Purchases Consulting Business

3 September 2001

Utility Services Corporation Limited (USC) has acquired Gibson Quai Pty Ltd, Australia's leading specialist telecommunications and data networking consulting business. The purchase price was approximately $4.5 million, comprising $3.5 million in cash and 1.5 million USC shares. Further consideration may be payable subject to post-acquisition earnings performance.

Gibson Quai has annual revenues of around $7.0 million. The acquisition is expected to be earnings per share positive immediately.

Gibson Quai was established in 1988 to provide professional advice in telecommunications. It has since grown into a national consulting practice and developed a range of strategic consulting skills. These encompass technical, business and market entry strategies, business development, regulatory advice, and the leveraging of advanced telecommunications technologies for competitive advantage. It operates through offices in Sydney, Brisbane, Perth, Adelaide, Melbourne and Canberra.

Gibson Quai has an extensive customer list including government, leading corporates, telecommunications carriers, regulators and industry investors.

USC currently operates through 3 business groups:
1. Utility Group comprising Utility Asset Management (with services such as customer connections and maintenance on utility power distribution assets), Skilltech (meter reading and services), U-tel (mobile phone services) and neopurple (industrial, creative and web design)
2. E-Business comprising the electronic commerce consulting businesses of Opticon (consulting and project management services in information, communications and technology) and now Gibson Quai. These businesses offer complementary consulting services and are expected to generate new revenue opportunities as a result.
3. Technology Investments, which holds venture capital-style interests in strategic technology businesses.
USC reported a December half-year profit of $42.6 million after tax, largely as a result of the sale of its main business undertaking, MITS, a technology consulting business. USC has no debt and holds cash reserves of over $50 million. USC is currently negotiating additional acquisition opportunities in professional services in specialized technology consulting and e-business. The Board expects to make further announcements in the near future.

Further information:
Geoff Lord
Executive Chairman
Utility Services Corporation Limited
Tel: (03) 9941 3100
www.utilityservices.com.au
www.gibsonquai.com.au