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Technology Stocks : NWLL -- Ignore unavailable to you. Want to Upgrade?

To: VoyK who wrote (252)	1/18/2000 10:07:00 AM
From: Anchan	Respond to of 265

It does worry me a bit: NewTel's statement affirms that there is indeed a strong link between Xinhua Holdings and Xinhua News -- but in the subsequent explanations of its Chinese dealings, the Chinese partner-to-be is simply called "Xinhua". Is that Xinhua Holdings or is it Xinhua News? And are these two companies to be seen as completely separate? Or not? Worried while yet long on NewTel.

To: VoyK who wrote (252)	1/18/2000 11:10:00 AM
From: Francois Goelo	Read Replies (2) \| Respond to of 265

NWLL on the MOVE UP AGAIN... New Tel Clarifies Relationship with Xinhua; Provides Internet Project Update... HERDSMAN, Western Australia, Jan. 18 /PRNewswire/ -- New Tel Ltd. (Nasdaq: NWLL) today provided an update on the progress of it's development of China's leading Internet Service Provider (ISP) and Portal. In addition, the Company confirmed the direct relationship between Xinhua Holdings Company and Xinhua News Agency, clarifying any misunderstanding in the market. Chief Executive Officer Peter Malone said "Xinhua has also advised New Tel that it is satisfied with the progress of the Internet project, and with the solid relationship developed with New Tel on the Internet project and over the past three years in winning an Australian telecommunications carrier licence and commencing carrier operations." As contemplated in New Tel's agreement signed with Xinhua on 23 November 1999, a Project Team has been formed for the purpose of implementing the proposed Internet transaction and associated capital raising. The Project Team is made up of New Tel and Xinhua executives and experts from US and UK lawyers Brown & Wood, Freehill Hollingdale & Page, and Deloitte Touche Tohmatsu (E-commerce group). This Team has been mandated to manage all aspects of the transaction including financing, due diligence and the e- commerce strategy development and roll-out. The Project Team has completed a detailed assessment of Internet products and services. Elements of the products and services assessed include an identification of those offered, customer segments and profiles, and performance reports such as page impressions and hit rates where available to assess the current levels of activity of these products and services. The Project Team, operating from the Company's Shenzhen office, has identified all information requirements concerning the Internet related assets being acquired. Xinhua is now finalising the information which will be utilised to complete the e-commerce strategy prior to the main capital raising and roll-out of the programme, including: -- Identification and analysis of target markets and customer segments for New Tel; -- Definition of the organisational linkages and boundaries with New Tel Limited and partners; -- Human resources requirements; -- Technology environment design; -- Financial planning and cashflow requirements; and -- Operations environment implementation. New Tel advised that further to an announcement to ASX on 23 November 1999, the company has raised A$17.2m to fund the initial stage of the Internet Project. New Tel shareholders are also being offered the opportunity to participate in a non-renounceable rights issue of $4.8m through a short form prospectus to be issued this month. It is planned that shareholders will be offered one ordinary share for every 25 ordinary fully paid shares held at an issue price of $1.20 per new share. "The Company will then proceed to the second major stage which involves a capital raising of A$200m to finance the rollout of the Internet programme," added Mr. Malone. As part of this programme, with the capital of the Company to increase substantially further to the completion of the acquisition of the Internet assets and the capital raising of A$200 million, the Company proposes to issue options to Peter Malone. This issue, equating to up to 20 per cent of the issued capital of the Company, is provided for his efforts in securing and delivering the project to the Company and his ongoing commitment under his employment contract. The exercise of these options will be based upon the achievement of key performance milestones. Additional to the completion of the A$200m capital raising and the acquisition of the Chinese Internet assets, these milestones include the achievement of set revenue targets or minimum share market capitalisation targets. Based on the prevailing market capitalisation and share price, it is envisaged that these options will be issued at A$4.00 with vesting to be benchmarked between A$4.00 and A$6.00. "We are pleased to report the progress of our Internet Project and the strength of our ongoing relationship with Xinhua. Shareholders will be provided with an Information Memorandum covering the ISP and Portal business and the issue of options presently," said Mr. Malone. New Tel has continued its rise on ASX over the past week closing today at A$2.94. New Tel Limited is a rapidly growing Australian telecommunications company listed on the Australian and NASDAQ stock exchanges. New Tel launched operations July 1, 1999 and provides local, national, international and mobile telephony and data services with emphasis on serving Asia, particularly China. SOURCE New Tel Ltd. -0- 01/18/2000 /CONTACT: Peter Malone of New Tel Limited, 618-9244-1166; or Ayelet Shaked of The Anne McBride Co., 212-983-1702/ (NWLL)