Eisa Teeters On The Brink

[Sydney, AUSTRALIA] Eisa Limited today announced that its provisional unaudited loss before tax for the 6 months to June 30, 2000 would exceed $40 million on a turnover of $9 million.

“Well over 50 percent of the loss relates to costs incurred in relation to the aborted takeover bid for OzEmail,” said Ian Timmis, eisa’s chief executive officer and finance director. “Whilst significant steps have been taken during the last 2 months to reposition the business, it remains wholly dependent on the success of the Austar takeover offer. Without Austar, the business is not viable. I sincerely hope, for our shareholders, customers and employees, that the Austar bid succeeds.”

Austar announced yesterday that its offer for eisa would definitely close at 7.00pm ESDT on
Friday, September 15th and that Austar would not increase its offer. Austar will not proceed
with the bid unless it receives 90 percent acceptances by Friday.

Evan Rees, eisa’s Chairman said, “Austar has made its position clear that they will not be extending or increasing their offer. Unless the offer is successful, eisa will not be able to continue business without significant extra funding, which we believe is highly unlikely to be secured. This means that the best financial solution for shareholders is to accept Austar’s offer without delay.”

So far Austar has received votes from holders of 83 percent of eisa’s shares accepting the offer.