The company announces the resignation of John Bumgarner as a director of PowerTel Limited.

John Bumgarner was previously the chairman of PowerTel from 14 August 1998 until 31 May 2002.

John Bumgarner retired from Williams Communications Inc., and due to other commitments has elected to resign as a director effective 24 March 2003.

In view of the general decline in asset values in the telecommunications sector, both in Australia and internationally, PowerTel Limited Directors have taken the decision to write down network assets in PowerTel's books by $106.9 million to $181.1 million.

The revaluations are accounting adjustments and do not affect the company's cash balance or business operations.

Announcing the decision, Chairman Miller Williams said the Board reviewed assets regularly in keeping with Australian Accounting Standards. "In view of the substantial decline in values of global telecommunications networks, the PowerTel Board took a conservative approach in its latest review of the company's non-current assets"

"PowerTel will have the advantage of reducing future depreciation, enabling the company to reach after-tax profitability sooner," Mr. Williams added.

As required by the accounting standards, the write-down is based on an assessmentof the recoverable value of individual assets, as well as a review of the level of future benefits expected to be generated by plant and equipment owned by PowerTel.

Mr. Williams said PowerTel had doubled sales revenue in the year to 31 December 2002 from $49.8 million to $102.5 million. Financial results for the full year will incorporate this asset write-down. They are due to be announced this Friday.

PowerTel Limited continued to increase revenue in the third quarter of 2002 in challenging telecommunication market conditions. Sales revenue for the quarter ending 30 September 2002 rose 13.2% to $28.7 million, up from $25.4 million in the second quarter and $18.4 million in the first quarter of 2002.

Reporting the performance, PowerTel CEO, Stephen Butler, said: "Revenue growth was driven by consistent sales performance in the third quarter when over $12 million of new annual contracts for customer services have been signed."

After achieving EBITDA positive in June 2002, PowerTel has continued to remain EBITDA positive throughout the third quarter, through a combination of monthly revenue growth and cost containment. EBITDA totalled $1.5 million in the quarter. "PowerTel's key stakeholders are encouraged by the positive EBITDA which is a significant milestone in the implementation of PowerTel's corporate business model. PowerTel's improving performance is proof that our model can succeed in the changed and competitive telecommunications market,"Stephen Butler said.

The company is generating sufficient positive cash flow to cover all operations and interest. This positive cashflow will grow in line with future EBITDA growth. Since PowerTel's last financial report on 12 September 2002, it has continued to draw funds from its bank debt facility for capital expenditure needs. The remaining unused facility currently standing at $21.5 million.

The company has also recently announced that WilTel Communications (previously named Williams Communications), a 45% shareholder, has emerged from its financial restructuring with a substantially stronger balance sheet and streamlined operations. WilTel Communications' position as a shareholder in PowerTel has not been affected by its restructuring nor is it seeking to sell its holding in PowerTel.

Williams Communications, a 45% shareholder in PowerTel Ltd, announced today its completion of financial restructuring and emergence from Chapter 11. Williams communications will emerge from bankruptcy under a new corporate name WilTel Communications which reflects a seventeen year heritage in telecommunications services in the United States.

While this process had no direct operational impact on PowerTel, Chief Executive Officer Stephen Butler said, "It is very good news that our shareholder's restructure is complete. They have executed on their restructuring milestones as predicted in a faster time frame than anticipated. WilTel Communications has been and will continue to be an active and supportive shareholder as well as network partner for PowerTel."

"The completion of the WilTel restructuring, combined with PowerTel's strong first half revenue growth and achieving EBITDA positive, has strengthened our foundation as we continue to grow our customer base and increase our network utilization over the long haul."

A copy of the WilTel Communications announcement is attached and is also available from http://www.wiltelcommunications.com/newsroom/newsreleases/ 2002/2002-10-16.html.

COMPANY EMERGES IN SIX MONTHS RETAINING ALL KEY NETWORK CUSTOMERS

Williams Communications Group, Inc announced today that it has completed its financial restructuring and has emerged from Chapter 11 proceedings as WilTel Communications Group, Inc, a Nevada corporation. Its Plan of Reorganization, which was confirmed by the

United States Bankruptcy Court for the Southern District of New York on September 30, 2002, became effective on October 15, 2002. The Company will continue to operate from its Tulsa headquarters.

The Company emerges with a new $375 million credit facility and no other substantial debt obligations other than those related to its headquarters building.

Under the Company's Plan of Reorganization, existing shares of WCG stock (OTCBB: WCGRQ) have been cancelled. The Company has issued 50,000,000 WilTel Communications shares for distribution, approximately 54 percent of which have been issued for distribution

to unsecured creditors and 44 percent of which have been issued to Leucadia National Corporation (NYSE: LUK). Leucadia has invested $150 million in the Company and purchased the claims of The Williams

Companies for $180 million, which funds will be released to the Company and The Williams Companies upon receipt of requisite FCC regulatory approvals which are expected to be obtained in the fourth

quarter of 2002. The remaining two percent of the new equity has been set aside for potential recovery by holders of securities-related claims through a channelling injunction approved by the Court.

The Company noted that its swift emergence and ability to maintain all of its network business is a testament to the dedication of its employees and loyal customers.

Separately, the Company announced that Howard Janzen has resigned as president, CEO and as a director. The WilTel Board of Directors expressed its appreciation to Mr Janzen: "Today WilTel emerges as a financially healthy, industry leader. This is a testament to the foundation created by Howard and the outstanding eadership provided by him during the Company's recent restructuring. Howard is a major reason for the Company's rapid emergence from Chapter 11 and for the seamless management of operations and customer care since the company's founding and over these difficult past six months. We thank him for his commitment and hard work on behalf of the Company as the Board begins the search for the next leader to continue WilTel's growth and industry leadership."

The Company will focus on offering solutions to a sophisticated customer base with complex communications needs, including leveraging the Company's strategic relationships with global telecom leaders, while growing its customer base and increasing sales momentum for its core offerings which include voice and data services. The Company's 17 years of experience and quality of service, which are critical for the delivery of video applications and content, will help it to maintain its leadership position in the media and entertainment sector.

The Company's Board of Directors consists of J Patrick Collins, Ian M Cumming, William H Cunningham, Michael Diament, Alan J Hirschfield, Jeffrey C Keil, Michael P Ressner, Joseph S Steinberg, with one seat vacant as a result of Mr Janzen's resignation.

Plan Receives Overwhelming Creditor Support;

Company Remains on Target for Fall Emergence from Chapter 11

NEW YORK, N.Y. - October 1, 2002

Williams Communications Group, Inc. (OTCBB: WCGRQ) announced today that the United States Bankruptcy Court for the Southern District of New York has approved its Plan of Reorganization. The Plan garnered overwhelming support from its Unsecured Creditors and the Secured Lenders, receiving nearly unanimous approval from those who voted.

"The Court's confirmation of our Plan of Reorganization and the vote of confidence from our creditors are critical steps as the Company completes its restructuring and nears emergence from Chapter 11," said Howard Janzen, chief executive officer of Williams Communications Group. "The diligent efforts of all parties helped shape a Plan which makes WCG a financially stronger company, well-positioned to provide reliable, superior service over the long-term. In particular, the commitment of WCG employees throughout the restructuring process allowed us to continue to provide our loyal customers with the quality network and customer service that is our hallmark."

Under the Plan, the Unsecured Creditors will receive approximately 54 percent of the equity in the newly reorganized Williams Communications. Leucadia National Corporation (NYSE:LUK), which will invest $150 million in the Company and purchased the claims of The Williams Companies for $180 million, will receive approximately 44 percent of the new equity. The Plan also includes a channeling injunction, which could allow holders of securities-related claims up to two percent of the equity of the reorganized company and potential recovery from the company's officer and director liability insurance policies.

As part of the confirmed Plan, a new nine-member Board of Directors will be formed. It will include four directors to be selected by the Committee of Unsecured Creditors, four directors to be selected by Leucadia, and Howard Janzen, CEO of the reorganized Company. The Plan also calls for the Company to transition to the WilTel name over the next two years.

There remain a few outstanding administrative and regulatory details to be resolved, including necessary approvals from the Federal Communications Commission. The Company expects to resolve these issues soon and remains focused on an October emergence from Chapter 11.

PowerTel Limited has been voted by its peers for the telecommunication industry's 'Best Corporate/Wholesale Broadband Initiative' at the third annual Australian Telecomm Awards. It is the second award in a row for the owner and operator of Australia's third largest fibre optic network, as PowerTel last year took out the 'Best Emerging Telco' award.

The winners are chosen by a wide spectrum of specialists in the telecommunication industry voting in Australian Telecom magazine, combined with nominations invited from key industry players.

PowerTel's CEO, Stephen Butler, said the award reflected the efforts of all at PowerTel to build responsive and personal service to PowerTel's corporate, government and wholesale customers. "This is a great boost and comes a week after we announced our most satisfying financial result since start-up."

"Both events prove we are now an established industry player and an agent for change in our sector of the industry. We warmly thank our customers for choosing to support us," Mr Butler said.

The Chairman of PowerTel, Miller Williams, announced today that Williams Communications, a 45% shareholder of PowerTel, has successfully completed a major

milestone required in its U.S. Chapter 11 debt restructure process announced on April 22, 2002. Williams Communications has secured a commitment for a US$150 million equity investment from Leucadia National Corporation as required in the restructuring agreement with its creditors and lenders.

In addition, Leucadia has also reached an agreement with The Williams Companies to acquire the equity it will receive as part of Williams Communications' reorganization. The resulting shareholdings in Williams Communications will be 55% held by Williams Communications' bondholders and 45% held by Leucadia National Corporation.

Commenting on the announcement, Williams Communications Chief Executive Officer Howard Janzen said, "Leucadia's investment in Williams Communications is an important step forward for the Company and we are pleased that all parties were able to work together to formalise the Settlement Agreement... We hope to successfully emerge from Chapter 11 [during the 3rd quarter 2002] and remain focused on providing the world-class network and superior level of service our customers have come to expect."

Locally, PowerTel's business operations and funding were not impacted by the debt restructure of Williams Communications. PowerTel reported strong first quarter 2002 results in April, which have continued through the first half of 2002. This announcement by Williams Communications is important to address shareholder and customer perceptions as to possible impacts to PowerTel's future business operations.

Commenting on the announcement, PowerTel Chief Executive Officer Stephen Butler said "some of our shareholders and customers have expressed interest in Williams Communications' status as a shareholder throughout this process and this announcement confirms that Williams Communications is on track to emerge from Chapter 11."

A copy of the Williams Communications announcement is attached and is also available from http://www.williamscommunications.com/newsroom/newsreleases/2002/2002-07-26.html

The Federal Government enterprise, Austrade, has chosen PowerTel to upgrade its domestic wide area communications network. Austrade has implemented PowerTel's IP VPN solution to provide communications between its eleven sites across Australia.

PowerTel's carrier grade IP network provides considerable advantages for Austrade's IP applications and will allow migration to voice and video over IP. With PowerTel, Austrade is now moving towards implementing an integrated voice, video and data network that is expected to reduce both intermediate and long term telecommunications costs.

"We have improved our intranet and internet communications to enhance Austrade's knowledge distribution function, and upgraded the links between the major capital cities eight-fold to support increased requirements for information," Austrade's CIO, Kym Hewett explained.

"The next step necessary was to simplify the existing network and gain cost efficiencies - with security and reliability of paramount importance.

"PowerTel's IP VPN provided an excellent foundation for our IP value-added services," he added.

The move is a major one for the Australasian trade network that facilitates international trade and investment in Australia. Eighty percent of Austrade's domestic network traffic runs between Sydney, Melbourne and Canberra and PowerTel has enabled Austrade to achieve an aggregate peak network capacity of 34Mb between these sites.

PowerTel's Director of Sales and Marketing, John Matic, explained that as a specialist in delivering corporate data solutions, PowerTel was well positioned to address Austrade's needs for increased capacity and a more efficient network design.

"We've been able to work with Austrade to reduce the cost and complexity of its domestic wide area network. Our IP VPN solution allows Austrade to prioritise its mission-critical applications and guarantee quality of service between its eleven sites - a critical requirement of its upgrade program".

"We are delighted to be working with Austrade, and look forward to developing our relationship as we continue to refine and enhance its communications".

Business broadband specialist, PowerTel Limited, does not expect to be affected by the announcement of its 45% shareholder, Williams Communications Group, Inc. that it has reached agreement with its creditors to go through a negotiated debt restructuring process.

The announcement was foreshadowed in a statement by Williams Communications Group in February 2002, that it was considering restructuring its debt as a possibility.

"PowerTel is not financially or operationally affected by the Williams Communications Group restructure. PowerTel is an Australian Stock Exchange listed company with a separately constituted board and operates independently of Williams Communications Group," PowerTel CEO, Mr Stephen Butler, said today.

PowerTel's other founding 30% shareholder, DownTown Utilities, recently announced it is a "substantial and committed shareholder and looks forward to working with the management of PowerTel as the business evolves."

"We completed our bank facility restructuring in March 2002, and gained an additional $16 million in funding. We are achieving continued growth of our Australian corporate, government and wholesale customer base and have increased our market share, lifting revenue quarter-by-quarter, while our costs continue to diminish.

"We recently reported a 40.5% increase in total revenue above the December quarter earnings, adding to continued growth during the past six quarters. Our EBITDA loss has reduced to around $1 million per month, less than half the monthly average of the preceding quarter," Mr. Butler said.

In its April 22 statement, Williams Communications Group announced it had entered agreements with its principal creditor groups to reduce its debt by approximately US$6 billion through a negotiated Chapter 11 filing. Over 90% of the Williams Communications Group bank lenders were joined by a committee of bondholders in reaching these agreements.

"The company's operating subsidiary, Williams Communications, LLC, is not expected to be involved in the Chapter 11 reorganisation process. Accordingly, the filing is not anticipated to affect domestic or international business operations of Williams Communications Group, which the company intends to continue uninterrupted," the statement said, adding that, with a strengthened balance sheet, Williams Communications will be better positioned to succeed over the long term.

Full text of the Williams Communications Group announcement can be found at http://www.wcg.com/newsroom/newsreleases/2002/2002-04-22.html

DownTown Utilities, as a major shareholder in PowerTel Ltd, acknowledges the strong performance of PowerTel Ltd in the first quarter of 2002.

In what were difficult market conditions PowerTel Ltd posted revenues of $18.4 million, a significant increase over the previous quarter.

Despite the continued tightening of the telecommunications sector DownTown Utilities believe that PowerTel Ltd is in a position to consolidate its strengthening position as a significant Australian telecommunications carrier servicing the corporate and government sectors.

DownTown Utilities remain fully committed to PowerTel Ltd despite recent press speculation to the contrary.

DownTown Utilities investment in PowerTel Ltd is part of a long-term plan to have a strategic holding in a significant fibre optic telecommunications network.

PowerTel Limited continued to increase revenue in the first quarter of 2002 in challenging telecommunications market conditions.

The company, the broadband supplier to business and government, which owns and operates Australia's third largest fibre optic telecommunications network, lifted first quarter total revenue 40.5% above that of the preceding quarter. This follows a 3.9% increase from the third to fourth quarter last year.

Total revenue for the first quarter of 2002 to March 31 rose to $18.4 million, up from $13.0 million in the fourth quarter of last year and $12.5 million in the third quarter.

Reporting the performance, PowerTel CEO Stephen Butler said revenue from the core corporate and government business continues to grow and this has now been increased by the migration of traffic from Macquarie Corporate Telecommunications under the alliance between the two companies.

"Importantly, revenue of our core corporate and wholesale business, has shown consistent improvement during the past six quarters," he said, but commented that market conditions were expected to remain difficult.

"The increased sales efforts and cost reductions have led to consistent improvement each month in the company's EBITDA loss position, which is now down to around $1 million a month and declining. This is less than half the monthly average of the preceding quarter and around a quarter of our loss rate of a year ago," he added.

Five of Australia's most recognized communications companies have joined forces to press for regulatory change to promote greater competition in the industry in order to deliver improved outcomes at competitive prices for business and domestic customers.

The Competitive Carriers' Coalition (CCC) is a pro-competition group established by AAPT, Hutchison, Macquarie Corporate, PowerTel and Primus Telecom.

The CCC has been formed to better represent the interests of the non-dominant carriers and to encourage a strong competitive market that delivers investment, innovation and improved services at competitive prices.

"Our primary concern is that a decade of deregulation has not delivered the government's goal of sustainable competition and if left to continue, the current regulatory framework could cripple Australia's ability to compete in a modern information economy," the partners said in a statement today.

"Further and ongoing distortions in this vital market could result in reduced competition, disincentive to investment and less choice for consumers - exactly the opposite effect to that desired by the Government."

The partners to the statement are the Australian Chief Operating Officer of the Telecom New Zealand Group, Mr David Bedford; the Chief Executive Officer of Macquarie Corporate, Mr David Tudehope; the Chief Executive of Hutchison, Mr Kevin Russell; the Chief Executive of PowerTel, Mr Stephen Butler; and the Managing Director and Chief Operating Officer of Primus Telecom, Mr Greg Wilson.

The CCC will enable the non-dominant carriers to speak to governments and regulators with a single voice on issues central to the future of the communications sector.

The CCC's most immediate concern is the proposed pay TV deal between Telstra, Foxtel and Optus, currently being considered by the ACCC.

"If the Telstra/Foxtel/Optus deal is allowed to proceed with no safeguards to protect competition, it will entrench Telstra as the 'gatekeeper' of communication, information and entertainment services in the Australian market," the partners said.

"The unprecedented level of potential service bundling that the Telstra/Foxtel/Optus deal enables will further strengthen Telstra's market dominance. Bundling can permit cross subsidisation and can hide costs and pricing data behind bundled prices to anti-competitive effect. It could create a barrier to entry for new capital investment by locking customers into a single aggregated service."

The CCC members are competitors currently offering real choice to consumers of telecommunications services. They are therefore concerned about the real reduction in choice and competition that the proposed deal represents.

"The Telstra/Foxtel/Optus deal illustrates a critical opportunity for the Government to ensure sustainable future competitive outcomes - this has the potential to impact consumers and businesses at many levels."

The CCC will be putting its views on the Telstra/Foxtel/Optus deal to regulators and the Federal Government and plans to work together to express common views on other key public policy issues in telecommunications.

The formation of the CCC follows widespread industry concern over the state of competition in the telecommunications sector. The CCC believes the current regime alone is insufficient to achieve competition and gives rise to lengthy and costly arbitration which is not sustainable for many smaller carriers and which serves to entrench anti competitive behaviour.

The CCC has agreed to work together to achieve three main objectives:

To promote efficient investment and competition in Australia's communications industries leading to improved services and competitive prices for all users;

To provide a vehicle for the non-dominant carriers to speak with a single voice on issues critical to the future of the information economy, such as the Telstra/Foxtel/Optus pay TV deal;

To foster improved resourcing and monitoring of the regulatory framework in order to promote improved competition and investment.

In 1997 Downtown Utilities entered into it's shareholding of what is now PowerTel Ltd with a long-term plan to develop a strategic holding in a significant fibre optic telecommunications network.

The telecommunications market continues to evolve and Downtown Utilities are firmly behind PowerTel Ltd, which has been acknowledged within the industry with awards such as "Best Emerging Telco".

Downtown Utilities believes that the service performance and product pricing of PowerTel Ltd provides a solid foundation on which to consolidate and increase market share.

Downtown Utilities is a substantial and committed shareholder and looks forward to working closely with the management of PowerTel Ltd as the business evolves.

There is no foundation in the article that appeared in the Australian Financial Review today, 11 April, regarding the alleged exit of Downtown Utilities from PowerTel Ltd.

ASX Announcement

13 March 2002 - For Immediate Release

Significant revenue increase by PowerTel

The Chairman of PowerTel Limited, John Bumgarner Jr, announced today the telecommunication group's result for the full year to 31 December 2001, reporting that PowerTel had increased revenue and, in the second half of the year, reduced operating losses.

"Revenue, operating expenses, cashflow and EBITDA (earnings before interest, tax, depreciation and amortisation) have all trended positively for us since mid 2001," Mr Bumgarner said.

Revenue growth accelerating

The company, which owns and operates Australia's third largest facilities-based broadband telecommunications network after those of Telstra and Optus, increased total revenue by 32.8% from $37.5 million to $49.8 million.

Excluding sales from the mobile business divested in 2000 (Spectrum), revenue on a comparable basis was up by 63.8% from $29.3 million to $48.0 million. During the latter half of 2001 core corporate and wholesale revenue grew at the rate of 20% a quarter.

The company achieved a consistent quarterly increase in the number of corporate, SME and wholesale customers, while government business also rose during the year. This growth has changed the revenue mix of the company, with higher-margin data and Internet sales moving from 21.5% to 55.7% of total revenue during the year.

PowerTel continued to wind down revenue from the low-margin former Spectrum business ($8.2 million reduction). It has more than replaced this business with revenue from new corporate, government and wholesale customers ($36.4 million, or 73.1% of total revenue).

EBITDA sharply improved

"EBITDA losses were comparable to the previous year but, importantly, improved 32.8% from a $25.6 million loss in the first half to a $17.2 loss in the second," Mr Bumgarner said. "EBITDA losses are currently less than $1.4 million per month and are decreasing. Based on that level of performance, the company should become EBITDA positive in the second half of the current year."

Following PowerTel's network completion, the net loss in 2001 was $86.2 million (2000: $61.8 million loss), due primarily to increased depreciation, amortisation and borrowing costs of $20.7 million.

PowerTel reduced staff numbers, operating costs and capital expenditure in response to the softening telecommunications marketplace in 2001. Operating costs were reduced by 17%, favourably affecting the company's cashflow in the second half.

Macquarie alliance now contributing

A major strategic alliance with Macquarie Corporate Telecommunications Limited, announced in September 2001, commenced migrating traffic onto the PowerTel network in January and is meeting expectations. It has started to contribute to EBITDA in the first half of 2002, and will contribute significantly in the second half. Under the alliance, Macquarie gains access to PowerTel's fibre optic network, which is progressively handling Macquarie's voice traffic.

The Macquarie alliance has helped boost revenues in the first two months of 2002 by 20% a month.

Funding renegotiated

With the support of its major shareholder, Williams Communications, PowerTel has renegotiated with its banks the $150 million loan facility put in place in January 2001. Details are:

* The loan facility has been reduced to $100 million to reflect PowerTel's reduced needs related to current and forecast revenues and capital expenditure.

* PowerTel has also received a $16 million convertible subordinated loan from Williams Communications, the conversion of which is subject to shareholder approval.

The renegotiated bank loan and Williams Communications funding gives PowerTel a fully funded business plan.

Business and wholesale broadband telecommunications network operator, PowerTel Limited, has received A$8 million of funding with a further funded commitment of A$8 million subject to certain conditions being satisfied.

The funding is in the form of a subordinated convertible loan from PowerTel's largest shareholder, Williams Communications. Key terms of the loan from Williams Communications are that repayment of principal and interest are deferred and subordinated to the bank loan and repayable one year after the bank loan is repaid. The loan is to be capable of conversion by Williams Communications to ordinary shares which requires shareholder approval prior to conversion which is anticipated to be sought at the May 2002 Annual General Meeting.

Williams Communications has been a major shareholder and sponsor of PowerTel since 1998. Notwithstanding its recent announcement that it is holding restructuring discussions with its banks, its continued support of PowerTel is evidenced by the additional funding currently being provided to PowerTel.

Chief Executive of PowerTel, Stephen Butler, said "the principal benefit to PowerTel from this additional funding is to provide it financial strength and credibility in the marketplace so that PowerTel can continue to attract and service customers, in its own right. Furthermore, while PowerTel enjoys the support of a shareholder and sponsor such as Williams, PowerTel is not dependent operationally on Williams Communications to service PowerTel's customers in Australia."

PowerTel expects to announce its full year financial results on 13 March 2002. Mr Butler said that despite a difficult environment in the telecommunications market, PowerTel had enjoyed continued month-on-month revenue growth in 2001.

PowerTel's fibre optic telecommunications network is Australia's third largest after those of Telstra and Optus. The network, which now reaches into over 450 major buildings in the CBDs of Australia's capital cities, was completed in 2000 and PowerTel is now building its corporate and wholesale customer base.

PowerTel Limited, which owns and operates Australia's third largest fibre-optic telecommunications network, today announced the appointment of John Matic as its Director of Sales & Marketing.

"PowerTel is very pleased to have secured someone with such solid experience in the Australian telecommunications market. John's appointment will help ensure that we meet our aggressive business objectives and plans for growth", said Stephen Butler, CEO.

"John will bring extensive corporate sales and marketing expertise to PowerTel and will concentrate on further acquisition of new customers to add to our corporate, government and wholesale bases".

Prior to accepting the position, Mr Matic spent seven years with AAPT, holding positions as Group Director, Commercial and Consumer and Director of Marketing. During his time at AAPT, Mr Matic was responsible for winning significant government business, and launched and developed the AAPT Smartchat brand.

He previously spent 11 years with IBM in Australia and the United States.

"I look forward to John joining the team and contributing to PowerTel's further success", Mr Butler said.

Mr Matic holds a Bachelor of Science degree in Computer Science (Engineering) from the Pennsylvania State University.

PowerTel Limited, which owns and operates Australia's third largest fibre-optic telecommunications network, announced today that it had signed a major contract to supply Fujifilm's Australian distributor, Hanimex Pty Limited, with a virtual private network that will efficiently and securely transport compressed digital images.

The service will allow Hanimex customers to upload their photos to Print@FUJICOLOR - the first completely networked online digital imaging application in Australia.

Through PowerTel, Fujifilm provides an online photo sharing and print ordering service where traditional film images and digital photos can be securely stored. Consumers can view the photos online and then order their own quality reprints directly from the website.

Hanimex and PowerTel have already launched the service and are currently expanding it to 200 stores, to coincide with the summer trading period the busiest time of the photographic year.

Under the contract, PowerTel will provide broadband connectivity to Hanimex retail customers. PowerTel's virtual private network will transport the compressed images at high speed from the retail outlets to the Fujifilm server and website, and from the website to customers' computers. "Because the connection is expandable, PowerTel can maintain the speed even in periods of high use, such as around the holidays, said PowerTel Chief Executive Officer, Stephen Butler.

We are delighted to have won an innovative and flexible contract with Hanimex. Both parties were looking for a partner that was able to grow with them and to think laterally to develop new solutions going forward, he said.

Hanimex Chief Executive Officer, David Patch, said the partnership allowed Hanimex to capitalise on PowerTel's broadband capacity.

More than one billion photos are printed from traditional film each year in Australia with the move towards digital imaging growing rapidly, Mr Patch said.

Digital cameras are experiencing significant sales growth in Australia. With PowerTel's help we are well placed to serve consumer demand as more people move to digital photography, he said.

ENDS

For further information please contact:

Hanimex:

Deidre McAlinden

Communications Manager

Tel: +61 2 9466-2784

0417-758 432 (m)

Email: mcalindd@hanimex.com.au

PowerTel:

Ann Combe

Marketing Communications & Media Relations Manager

Tel: +61 2 8264 4540

combea@powertel.com.au

ABOUT HANIMEX:

For more than 40 years, Fujifilm has been distributed in Australia by Hanimex Pty Ltd, creating one of the longest trading relationships in the history of the photographic industry. As one of the leading manufacturers and marketers of imaging and information products, Fujifilm has helped drive the worldwide revolution in how pictures are taken, processed, stored and shared.

The Fujifilm brand name has also forged a strong identity around Australia with the establishment of more than 400 independentlyowned Fuji Image Plaza and Fujifilm Image Plus retail outlets.

Broadband telecommunications network operator, PowerTel Limited, is reducing its workforce by 10% in light of industry conditions.

To ensure the business meets financial targets next year it is necessary to reduce operating costs which unfortunately includes red