Media Release

Netspace business update

NETSPACE REPORTS SUCCESS WITH NEW VOICE OFFERING

(THIS WAS NEVER ISSUED) Melbourne, March x, 2007 - National Broadband ISP, Netspace, today announced a record start to 2007 with above average growth in broadband sales driven in part by a strong take up by consumers for the company’s full service voice offerings, particularly its bundled VoiP and broadband plans.

In December 2006, Netspace officially launched Netspace Phone – a range of telephony services for consumers and small businesses. These included 10¢ flat rate VoIP calls to anywhere in Australia and 4.9¢ per minute VoIP calls to many International destinations as well attractive home phone and broadband bundles, and standard long distance and pre-paid calling card options.

Ben Dunscombe, Regulatory Affairs Manager for Netspace said the launch of Netspace Phone has sparked a new phase of growth for the company by bringing to market an offering that’s attractive to customers who might otherwise just use a large carrier such as Telstra or Optus for all their communications needs.

“The start of 2007 has been a strong period of growth for Netspace which we believe has been driven by our competitive and successful Voice campaign. Since December, more than x% of our home and small business broadband customers have signed up to our VoIP services and we have also seen a surge in new broadband customers signing on to our Home Phone/Broadband bundled deals,” said Dunscombe.

Netspace Plots SMB Push

Netspace plans to boost its position in the SMB communications market with the relaunch of Netspace Business Solutions set for quarter three this year.

“The SMB space is a very important market for Netspace however we recognize that in order to be competitive, we need to strengthen our strategic focus and invest in new product development,” said Dunscombe.

Dunscombe says the Company’s vision for Netspace Business is to offer a full suite of business solutions. This includes an expanded range of voice, data and internet solutions as well as managed services and hosted business applications.

-ENDS-

Media Contacts The PR Group for Netspace Melissa Shawyer Caroline Shawyer T) (03) 9662 2022 T) (03) 9662 2011 M) 0412 066 048 M) 0401 496 334 E) [email protected] E) [email protected]

About Netspace Established in 1992, Netspace is one of Australia’s longest running Internet Service Providers (ISP) and broadband specialist that is 100 per cent Australian owned and operated. Headquartered in Melbourne and with a local presence in Western Australia and Tasmania, Netspace is committed to keeping communication technology simple, fair and accessible for all Australians to enjoy. Web reference: www.netspace.net.au