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’ CEO s Address to Shareholders 27 November 2007

Mr Chairman, Fellow Shareholders

During the 2006-07 year, Ltd (ASX: EFT) announced a new record high of over $34m revenue for the 2006-07 year.

Sales Growth

Revenue ($million)

35

30

25

20

15

10

5

0 2002 2003 2004 2005 2006 2007

The 31% upsurge in sales has been a standout performance, which compares especially well with other listed Internet providers.

We have worn some profit pain for that growth. Costs associated with it were brought to account during this period, and are anticipated to deliver substantial benefit to the group in the 2007-08 financial year.

’ These results also marked the company s fifth consecutive year of positive operating For personal use only use personal For cash flow, while the upward trend in revenue is also expected to continue.

This year, we became the first Internet provider to announce the planned rollout of nationwide VDSL2, the next generation in high-speed broadband delivery.

VDSL2 will enable speeds of up to 100Mbps, 4 times faster than ADSL2+ and from 12 to 400 times faster than ADSL.

The network, which will be called BroadbandNext, will be built on MSAN, or Multi- service access node technology. MSANs are a leap ahead of the traditional DSLAM Broadband technology being rolled out by most providers. MSANs have superior upgradeability, scalability, redundancy and environmental sustainability.

’ EFTel s MSANs can deliver VDSL2, ADSL2+, traditional ADSL, SHDSL corporate solutions, normal PSTN Voice services, IP Video, VoIP, and Bare DSL.

Within a day of our BroadbandNext announcement earlier this month, several major competitors rushed out their own announcements. Matching us on announcements, however, does not mean a match on a rollout, which has been some time in the planning.

The project remains on track to commence in February 2008, rolled out at a rate of 15 exchanges per month, with an initial schedule of 70 exchanges nationwide. EFTel will support the fastest and most advanced DSL broadband network technology in Australia.

Apart from delivering superior services to customers, the rollout brings EFTel some freedom from the cost prison. A key means of ensuring margin growth is to own strategically selected pieces of the infrastructure that give rapid payback. In this way we can deliver value-added services and at the same time reduce costs.

And make no mistake - this is the most exciting event in the history of EFTel. We are delivering a service to the Australian public that is new, technically advanced and leaves major competitors in our wake.

” As leading broadband forum, Whirlpool, noted earlier this month, EFTel may have a head start on its competitors, as it will be able to roll out VDSL2 capable equipment from the beginning. Other providers may need to replace their ADSL2+ DSLAMs with ” new ones to enable the technology .

In the last financial year, a number of other significant initiatives were announced.

EFTel became the exclusive distributor in Australia and throughout Oceania for a

For personal use only use personal For new wireless web service. The product is both highly economic as well as giving the fastest delivery of its kind.

EFTel also became a preferred supplier to the Victorian Government along with and two other providers.

We have launched full service telephony, expanding our capacity to capture the total spend of our customers.

We also completed the acquisition of aaNet, a leading broadband provider. Under our management, this business has gone from strength to strength, having gained a 5 star customer satisfaction rating in PC Authority.

Over the last 12 months, we have seen a growing recognition of our value. About a year ago, the sector was experiencing what many would have regarded as rather low share prices. As the sector has bounced back, we have done so ahead of most of our peers.

Company Closing Price Closing Price Change – – 27/11/06 26/11/07 iiNet 87.5c $2.07 + 137% Unwired 29.5c 50c + 69% EFTel 6.1c 10c + 64% Pipe Networks $2.95 $4.10 + 39% Telstra $3.69 $4.70 + 27% M2 60.5c 76c + 26% Singtel Optus $2.45 $2.98 + 22% Macquarie Telecom 90c $1.09 + 21% Destra 20.5c 24.5c + 20% Amcom 19c 20c + 5% People Telecom 6.5c 5.6c - 14% Hutchison Telecom 24c 20c - 17% Chariot 12c 7.5c - 38% Freshtel 81c 37c - 54% Engin 28c 13c - 54% SP Telemedia 95c 36.5c - 62% Reeltime 9.8c 2c - 80%

We believe this trend can continue. The sector has certainly enjoyed more buoyant days in terms of share price, but what characterises it now is that companies such as ours are demonstrating growth in real value, underpinned with strong net asset positions, rather than the mere expectation which existed during the dotcom heyday.

For personal use only use personal For This augurs well for the future, and our most exciting times lie ahead of us.

Thank you.