USC expands in convergent voice, data and e-Business

7 March 2002

Utility Services Corporation Ltd (USC) is expanding its involvement in
the convergence of voice, data and e-business applications via a
management buy-out of an Alcatel Australia subsidiary.

The subsidiary involved in the deal is Alcatel e-Business Distribution
Pty Limited, which is an integrator of converged voice and data
communications solutions.

Alcatel e-Business Distribution Pty Limited is the sole Australian
premium distribution channel for Alcatel's enterprise products. Its
extensive customer list includes many leading organisations from the
government, health, hospitality and corporate sectors across Australia.

Under the terms of the deal, a new holding company has been formed. USC
and Alcatel e-Business Distribution's management team will each own 50%
of the new holding company, with USC providing funds for working
capital. The company's employees will also be able to participate in a
USC share option scheme, with shares provided by USC, exercisable over a
three-year period.

In addition, USC retains an option over the management's equity at a
price based on performance.

USC's executive chairman, Mr Geoff Lord, said today, ''Alcatel e-Business
Distribution's revenue in calendar 2001 was $22.6 million. We are
predicting in excess of 50% growth over the next three years. The deal
will be earnings per share positive immediately and will take aggregate
annualized turnover of the businesses in the USC group to in excess of
$80million p.a.

Mr Lord said rapid growth in the e-business application sector will lead
to the formation of strategic alliances with other technology partners
over the next 12 months.

He added that Alcatel e-Business Distribution will maintain a strong
working relationship with Alcatel. ''The company has a five-year
agreement with Alcatel for enterprise products and associated
integration services for telco opportunities in Australia,'' he said.

The company is also the sole Premium Partner for distribution of
enterprise products in Australia for Alcatel Business Systems out of
France.

''Alcatel e-Business Distribution is a substantial business and gives USC
an excellent opportunity to expand its involvement in the
telecommunications industry,'' Mr Lord added.

About Utility Services Corporation

Utility Services Corporation (USC) is listed on the Australian Stock
Exchange with market capitalisation in excess of $50 million and cash
reserves of $32 million.


USC operates through three business groups:

1. Utility Group comprising Utility Asset Management (construction,
inspection and maintenance of 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
business of Opticon, the telecommunications consulting business Gibson
Quai and the financial applications business QSP.
3. Technology Investments, which holds venture capital-style
interests in strategic technology businesses, including ILID, Fox
Technologies, Percipience, the Logica Resource Agreement and the
recently announced investment in Primergy Ltd.


About Alcatel e-Business Distribution

Alcatel e-Business Distribution is a leading solutions integrator of
converged communications networks. The company is the largest wholly
Australian-owned solutions integrator of converged voice and data
solutions in Australia, with a strong heritage in complex voice
applications.

The company's focus is to understand the evolving communications
requirements of its customers. Through its highly trained workforce it
is able to design and implement communications solutions that can be
developed as its customers' businesses grow.

Alcatel e-Business Distribution offers solutions at the core, edge,
access and transmission layers of the enterprise next generation network
(NGN).

The offering to the corporate and government sectors includes solutions
for local area networks (LAN), wide area networks (WAN), security,
virtual private networks (VPN), voice, PC and IP telephony, contact
centres, computer telephony integration (CTI) and interactive voice
response (IVR), with design, implementation, integration, consulting,
training and support services.

The company designs solutions using the best and most appropriate
products from a range of leading manufacturers such as Alcatel and
Genesys. As the only accredited Premium Partner in Australia for
Alcatel's enterprise voice and data products, the company offers the
full range of Alcatel's Omni voice and data network products.

It employs 60 people in five offices across Australia.


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