NewSat Limited (ASX:NWT) Results For The Half Year Ended 31 December 2009

Melbourne, Feb 9, 2010 AEST (ABN Newswire) - The NewSat Limited (ASX:NWT) (OTC:NWTLY) Board of Directors is pleased to report the Group performance for the half-year ending 31 December 2009. As announced to the market during the period by the Directors, the business has turned an EBITDA profit for the 6 months with every key financial metric improving significantly in comparison with the corresponding period.

The business continues to leverage both the infrastructure and engineering at its Perth and Adelaide teleports and global sales resources to win high-grade corporate contracts across the oil, mining, gas and military markets domestically and internationally. Key business growth and market penetration was achieved via a number of substantial mining project installations and expansions.

The Group increased its annuity monthly revenue stream by almost A$300k per month during the six months whilst minimising contract churn. For the period, over 200 new high-grade enterprise contracts were signed with an average value of approximately A$30k per annum. Both of these figures represent an improvement in comparison to the previous six months demonstrating higher quality and value contracts during the period. The sales pipeline is comparatively stronger than the previous period as a result of NewSat's continued high customer satisfaction ratings (99.99995% uptime and fast customer service deployment), a more streamlined sales lead generation system and a new company website.

During the period all operating cost lines were monitored closely and remained fairly static. The only cost which was higher than anticipated was legal and advisory costs in relation to the EWC Payments Pty Ltd matter, which is now behind the company. Management continues to focus on examining operating costs and overheads closely to transition revenue dollars into cash generating profit.

The Directors will continue to update the market on business progression during the third quarter of the 2010 financial year.

Growth Projects

The Jabiru Program

The Group has continued to progress development initiatives on the Jabiru satellite launch program.

During the period significant progress was made in moving the project from the research stage into a bona fide viable program with an announced start date for build and launch of Jabiru 1 targeted for 30 June.

Whilst the program moves forward the company will continue to update the market on its status.

Summary financial analysis

- The Group has continued to deliver strong revenue growth - 21% for the current half year versus the equivalent prior half year;

- Sustained growth is reflective of both substantial gains in new business and strong retention of existing contracts and customers as disclosed to the market throughout the period;

- Growth at a Gross Margin level has followed revenue and in % revenue terms the gains achieved from FY08 to FY09 have been maintained;

- Gross margin % has stabilised at 50% of revenue (consistent with the first half of FY09);

- Significant turn around in EBITDA reflects the strong revenue growth, robust margins and control of operating expenses - a continuing focus of management.

- The graph left shows NewSat's Monthly Recurring Revenue Charge ("MRC") on a rolling three month average basis;

- As the graph illustrates growth has been seen in each and every period from August 2008 (FY09) to December 2009 (FY10);

- Demonstrated growth reflects both robust customer retention and continued success winning new business;

- Current monthly MRC is over A$2.0m;

- Continued robust MRC growth is the foundation of the increasing month on month profitability.

For the complete NewSat Limited ASX Announcement including 'Tables' and 'Figures', please click the link below:

http://www.abnnewswire.net/media/en/docs/62244-ASX-NWT-331969.pdf

Contact

Michael Twomey Stakeholder Relations NewSat Limited Tel: +61-3-9674-4626 Email: michael.twomey@newsat.com