OPTUS TO BUY COMVERGENT'S MOBILE OPERATIONS

The Optus mobile business has agreed to acquire the Australian mobile business of ComVergent Telecommunications.

The mobile business, trading as RSL COM Personal Communications (RCPC), is being sold as part of a restructure of ComVergent's Australian business.

Mr Chris Anderson, Chief Executive of Optus, said the deal would secure the future for RCPC's mobile customers while at the same time giving Optus additional retail revenue streams.

Optus will acquire RCPC's mobile base of about 120,000 active customers and gain access to much of the company's retail distribution network of around 140 outlets nationwide.

Under the terms of the deal, the majority of the mobile staff will be offered employment by a new Optus subsidiary.

"We have been involved in discussions with RCPC for some time," Mr Anderson said.

"Our key objectives have been to deliver the best commercial outcome for both companies, while securing the interests of Optus and RCPC's mobile customers.

"It will largely be business as usual for RCPC's mobile customers, who can still enjoy their current offers safe in the knowledge that Optus will be providing service.

"We are delighted to be able to further strengthen our retail diversity with this focused and profitable business," Mr Anderson said.

Speaking on behalf of ComVergent's board, Mr Adrian Coote, Chief Executive Officer, said the board had been developing a plan for some time to restructure the company to ensure the continued operation of the business.

"We are pleased that Optus will be buying RCPC's mobile business, providing security for our mobile staff and dealers, whilst at the same time maintaining the brand and services to customers.

"While it was events overseas that prompted us to review our position locally, it is important to recognise that the businesses we have retained are very focused and have been very successful operations. I am confident that the restructure will enhance the company's strength in the sector and open up new opportunities for growth," Mr Coote said.

The deal, which is confidential and subject to conditions, is expected to be finalised within the next month.

For more information contact:
Stephen Woodhill
Optus Public Affairs
Tel: (02) 9342 7850