USC expands in e-Business voice and data network services

16 April 2002

Utility Services Corporation Ltd (USC) has expanded its involvement in the convergence of voice, data and e-business applications by acquiring the businesses of Corporate Network Solutions Pty Ltd (''CNS'') and CANTEC Australasia Pty Ltd (''CANTEC'').

CNS provides services in the design, installation, systems integration, management and support of large-scale computer data networks, standard operating environments and server-based computing technology. CANTEC designs, installs and services wireless communications systems encompassing emergency call systems for aged care facilities, communications sites for emergency services such as ambulance and fire, security and surveillance systems.

Both businesses are profitable and have strong growth profiles. The purchase price is based on a combination of up-front cash plus earn-out arrangements comprising a mix of cash and USC shares. The multiple of EBITA to be ultimately paid is expected to be approximately 3 times. Accordingly the acquisitions are expected to be earnings per share positive.

CNS and CANTEC are seen as being highly complementary to USC's recently announced acquisition of a 50% interest in Alcatel e-Business Distribution Pty Ltd. As voice and data network technologies merge, USC is well-placed with leading-edge expertise and a strong existing customer base in both voice and data networks and telecommunications consulting.

USC is actively seeking growth opportunities. It has completed 5 investments/acquisitions over the past 6 months bringing the current annualized turnover of the USC Group (including 50% owned companies) to in excess of $80 million p.a. with more than $90 million of forward work contracted.

These acquisitions are building blocks in USC's strategy of developing leading positions in the Australian market for services in specific targeted areas described below. USC is progressively reinvesting its cash reserves in the purchase and development of profitable businesses in these sectors. 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 $30 million. USC operates through three business groups:

1. Utility Group comprising construction, inspection and maintenance of utility power distribution assets, meter installation, reading, data management and related services.

2. e-business comprising e-business consulting, solutions and applications, telecommunications consulting and voice and data network solutions and services.

3. Technology Investments, which holds venture capital-style interests in strategic technology businesses.

USC reported a Profit Before Tax of $1.6 million for the half year to December 2001 on revenue of $19.5 million. USC will pay a fully-franked interim dividend of 2 cents per share on 30 April 2002.

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