NewSat Limited (ASX:NWT) Record Growth Continues

Melbourne, Dec 23, 2009 AEST (ABN Newswire) - NewSat Limited (ASX:NWT) (PINK:NWTLY) Australia's largest independent satellite communications company is in the process of completing another quarter of record growth. This ensures that this half year is NewSats best ever.

With over 300 new business contracts signed, worth in excess of A$8 million, NewSat has experienced a 20% growth compared to the previous 6 months to June 2009.

NewSats previous reported 12 months saw revenue up 46%, gross profit up 76%, EBITDA up by A$5.9 million, and operating cash flow up 99%. NewSats annualised annuity contracted revenue increased to over A$20 million in this period with total new contract value up to 277% - an increase of A$12.7 million.

The coming six months are very promising, and at its AGM in December NewSat reiterated it had generated positive EBITDA in the first quarter of FY10, and is continuing into profitability thereafter. With no debt to service, and month on month increased annuity revenue, NewSat Directors are confident, and have gone on record at the AGM to predict that NewSat will in the future join the ranks of the ASX 200 if its pace of growth and profitability matches expectations.

Whilst this will require a quadrupling of its market capitalisation, Directors believe the NewSat pipeline is strong and secure enough to justify such optimism.

NewSat Vice President of Sales, Andrew Matlock noted "our growth in sales is attributed to a robust pipeline that now stands 50% stronger than this time last year".
Recently NewSat has secured contracts with several "blue-chip" corporates. These contracts are on some of Australia's largest resource projects and off shore oil platforms. Because NewSat operates in a market sensitive and security conscious environment, it is not yet able to announce the names of the customers. But it will when protocols permit.

NewSats strategy to spawn Jabiru and launch two satellites is well advanced. An expert team has been assembled to embrace NewSat and its existing customers future needs, as well as requirements for National Broadband Network. Even in the event NewSat is not successful in its NBN push, shareholders will benefit through the launch of at least one geo-stationary satellite. With the expectation of project completion by June 30th 2010, launch during the last quarter of 2012 is still a reality. With revenues in excess of 1 billion on Jabiru-1, shareholders have much reason to be enthused and excited.

The process for recruitment of new Directors is well underway and there is no shortage of outstanding candidates. NewSats new and revitalised Board will be in place before the end of the current financial year.

Attendees at NewSats AGM were advised that current CEO, Adrian Ballintine would continue in his current role beyond June 30th, 2010 in order to enable NewSat to quickly reach its stated goals. The Board and its advisors Lazard were unanimously of this opinion.

The business of satellite, space and teleport operation has proved to be recession proof and NewSat like many of its international contemporaries is starting to deliver strongly on all fronts. Directors acknowledge that the failed EWC Payments Pty Ltd takeover bid was a distraction to our shareholders and the market and derailed the strong progress and share price growth evident several months ago. On December 21st the offer formally expired requiring nothing further to be said.

Contact

Richard Green Chairman Melbourne Principal Office Tel: +61-3-9674-4644 Fax: +61-3-9674-4655