NZ’s Datasquirt launches $A10 million IPO on ASX

For immediate release

24 July 2007

New Zealand’s Datasquirt launches $A10 million initial public offering on Australian Stock Exchange

Auckland-based contact centre software company Datasquirt Limited has launched a public offering on the ASX, underwritten by Bell Potter Securities Limited, to raise a minimum of $A10 million at $0.90 per share.

The offer was opened to Australian and New Zealand investors on July 16, with offer documents available for download from the Datasquirt website www.datasquirt.co.nz and the Bell Potter website at www.bellpotter.com.au. The offer closes on August 16, 2007. The minimum application size is 2,250 shares at $0.90 cents per share with additional shares applied for in multiples of 500 shares.

On completion of the offer the minimum underwritten market capitalisation will be $A28 million with total shares on issue of 31,111,111. Existing shares held by employees and directors total 20,000. All shares being offered are new shares with the existing shareholders retaining their respective holdings.

Datasquirt director and co-founder Mark Loveys says the funds raised will be used for product development and international sales and marketing of Datasquirt’s award-winning CONTACT software, as well as satisfying working capital requirements.

CONTACT is designed to enable call centres to integrate text, fax and email messages into existing processes when handling both inbound and outbound communications. Datasquirt’s major customers include Fonterra, Yellow Pages, Auckland Regional Council, The Ministry of Justice, Cerebos Greggs, Coca Cola Amatil NZ, The Election Enrolment Centre, Amway Australia New Zealand and the Auckland City Council. CONTACT won a TUANZ Innovation Award in 2005.

The latest projects in Australia during 2007 include a pilot implementation for account receivable management at Dun & Bradstreet; and in the United Kingdom at Silverjet, a fully automated SMS and email self-service handling flight bookings, travel confirmation, seat selection and flight cancellations and delays.

“Over the last twelve months we have established offices and subsidiaries in New York, London, Duesseldorf and Sydney,” Mark Loveys says.

“Our success in appointing strong local representation in these markets gives us confidence to now invest for rapid international growth, focusing on the call centre market.”

Contact centres have become the portal for an estimated 80 per cent of all customer transactions with a business, Loveys says. This market is growing strongly. While New Zealand has only 21,000 call centre seats, the US has 2.7 million, the UK around 500,000, Germany 250,000 and Australia 130,000.

“Datasquirt brings a very strong proposition to these markets,” Loveys says.

“CONTACT is purpose designed for the call centre market. Over the last six years we have built up considerable intellectual property and a strong track record of leadership in the integration of text, email and fax to traditional voice-based contact centre processes and applications.

“As mobile phone usage continues to grow and more communication is done via email, it’s critical for call centre operators to be able to integrate voice traffic with non-voice traffic. In many applications - for example payment reminders - text messaging is both immediate but non-threatening. Many call centre applications – for example power outage management - are best handled by a blend of communication using voice message, text message and email messages.

“A particular strength is that CONTACT is sold as a hosted service. This means call centres don’t need to buy and maintain their own software. They can buy our service on a monthly, per user basis delivered as an ASP hosted service over the Internet,” Mark Loveys says.

The public offering will help fund purpose-built data centres in Australia, US, UK and Europe, he says. These will host the CONTACT software, and by providing hosting close to customers in each market will enable faster and lower cost delivery of the applications to customers.

Full details of the company’s product and market strategy, balance sheet and other operational and market information are disclosed in the Australian and New Zealand offer documents on the company’s website www.datasquirt.co.nz

About Datasquirt

Datasquirt was founded in 2001 by current shareholders and directors Aaron Ridgway and Mark Loveys. Mark Loveys was the developer of the market leading Exonet business software package, now fully-owned by listed Australian company MYOB.

Aaron Ridgeway, Datasquirt’s managing director, CEO and major shareholder, has extensive experience in the mobile phone market, owning several ‘First Mobile’ Vodafone franchises in New Zealand.

Non-executive chairman Jens Neiser manages the Neiser Capital Investment fund and was previously a partner with Boston Consulting Group. He joined the Board following his investment in Datasquirt in 2006.

Non-executive director David Lyons is the CEO of Continuum Voice and Data Systems, a hardware and software distribution company with a team of 35 people based in New York.

Non-executive director Lindsay Phillips is the Managing Director of Phoenix Development Fund and Nightingale Partners in Australia. His experience includes seven years with Price Waterhouse.

ENDS

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