KordiaT announces acquisition of Orcon

FOR IMMEDIATE RELEASE:-

Kordia™ Group Limited announces that, effective 2 July 2007, it will be acquiring Orcon Internet Limited.

This acquisition reflects Kordia™’s strategy of growth—shifting from being an infrastructure owner and provider to a more solutions-orientated company—and is an exciting development for both Kordia and Orcon.

“We’ve been considering acquisitions in this field for some time,” says Geoff Hunt, CEO of Kordia™.

“We’ve been operating in the telecommunications space for some years. However, we wanted to more closely connect to consumers. This acquisition creates that opportunity and is a logical extension of what we do today. The telecommunications sector is critical to the New Zealand economy, particularly with our distance from overseas markets. We see the acquisition as a key part of what Kordia™ can do to be part of the transformation of the New Zealand economy.

“Convergence between broadcasting and telecommunications has also been happening in the industry for some time. This is Kordia™’s opportunity to leverage its strengths and capabilities and serve the market with an enhanced range of products and service.

“Customers of Orcon will certainly notice a greater range of products and services. In particular, we’ll be expanding on our Extend broadband wireless service offering.”

Purchased for $NZ 24.3 million, Orcon will continue to operate as an independent entity. Reporting in at a group level, it will remain completely separate from Kordia™’s network business in New Zealand.

Seeby Woodhouse, founder of Orcon, will be transitioning to a consulting role with the business over the next month, and will stay on as a director of Orcon. Scott Bartlett, currently General Manager, will be appointed as CEO. Mark Mackay will remain in the business in his current role as chief technology officer. There will be no staff redundancies as a result of this change of ownership.

“Basically, very little will change in the day-to-day management of Orcon,” says Seeby Woodhouse.

“Kordia™ understands Orcon’s business and is dedicated to pursuing its continued growth. It’s an excellent parent company, has a strong vision for Orcon and is a significant player in the New Zealand and Australian telecommunications scene. Just as importantly, Kordia™’s purchase of Orcon ensures that this company remains Kiwi owned and operated.”

Geoff Hunt agrees: “Not only will Kordia™ bring capability and opportunities to the table; it will also gives Orcon access to its broad industry knowledge across the group. Together, Kordia™ and Orcon are well placed to take advantage of future growth opportunities.”

ENDS

www.kordiasolutions.com

About Kordia™
Kordia™ is an experienced trans-Tasman business with a new name, and is one of the region's leading providers of customised broadcast and telecommunications networks, network services and converged solutions.

Kordia™ owns one of the largest telecommunications networks in New Zealand and is the major provider of television and radio broadcast facilities. In Australia, Kordia™ provides design, build and maintenance services to the broadcast and mobile telecommunications sectors as well as engineering services throughout the region.

Kordia™’s business is built on creating harmonisation – the ability to meld customers’ ideas into an operating reality, managing convergence in technology in today’s fast moving world.

The name Kordia™ comes from the Latin ‘accordia’ meaning harmony – bringing people and technology together as one.

About Orcon
Orcon’s history began in 1994, when Seeby Woodhouse began trading as Orcon Group. In 1999, Orcon merged with Digital Edge Limited to form Orcon Internet Limited. One year on, Orcon made the first of more than 20 small ISP acquisitions over a period of six years.

In 2003, Orcon was ranked New Zealand’s 4th largest ISP by PC World and NZ Telecommunications Review. A year later and Orcon was awarded Best ISP by NetGuide. It was also ranked 23rd out of the 50 fastest growing companies in New Zealand.

In 2006, Orcon acquired WiseNet and Kiwi Online. In the same year, Orcon was named the ISP of the year by TUANZ and MacGuide.

Orcon operates from two buildings on Auckland’s North Shore; the company also has regional offices in New Zealand and Australia. Today, Orcon employs 95 staff. Kordia’s acquisition of Orcon ensures this New Zealand success story will remain in Kiwi hands.

ENDS

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