Evolution - Sydney provider to Apartment buildings that fell over in 2001

Broadband bet pays off for Triguboff

Author: Tony Boyd
Date: 18 Oct 2000

Mr Harry Triguboff's bet on superfast multimedia access for residents of high-rise apartments was given a stamp of approval yesterday when New Zealand-owned telco AAPT pumped about $3 million into Evolution Technologies (Australia) Ltd.
AAPT's decision to take a 12.5 per cent stake in the broadband cabling group alongside the 10 per cent stake of Mr Triguboff's Meriton Apartments group gives Evolution added kudos in the lead up to its sharemarket float later this year.

Evolution is the first Australian company to offer an ``always on" broadband internet service and cable TV using the latest digital subscriber line technology that is sweeping the United States.

Evolution used its strategic relationship with Meriton to negotiate the installation of its cabling in apartments being built by other developers.

Evolution's managing director, Mr Hart Mailandt, said his company was cabling about 20 Meriton sites and several other buildings including the Renzo Piano residential tower in Macquarie Street Sydney.

``We are doing a couple of Mirvac buildings, some properties being developed by Devine on the Gold Coast and we are talking to Grocon," Mr Mailandt said.

The most high profile and complete installation had been at 311 Castlereagh Street in Sydney where Meriton had built 1,200 units.

Mr Mailandt said that residents of buildings with the Evolution service would benefit from the installation of digital subscriber line multiplexer switches in the basement of their buildings.

He said this avoided the normal problems associated with ADSL installations at local telephone exchanges such as loss of quality of signal.

AAPT's investment in Evolution means that within the next 12 to 18 months residents will be able to get access to telephony and video on demand from the same cable delivery internet and pay-TV.

It's a green light for Evolution float, an orange for B Digital
By JANE SCHULZE in Melbourne

While confusion continued to surround the listing of the Seven Network's mobile telephony business B Digital yesterday, another company in which it has a 12.5 per cent stake is expected to meet its listing timetable despite the sharemarket's recent volatility.

The company, Evolution Technologies, which is laying broadband cable through high-rise apartment buildings, is expected to soon confirm Mr Harry Triguboff's Meriton Apartments as a key shareholder.

Meanwhile, a Seven spokesman said the B Digital float had not been postponed indefinitely and that the matter remained in discussion with its advisers, Warburg Dillon Read and Grant Samuel & Associates.

Despite earlier confusion, the company denied that an underwriting agreement had been signed.

Sources dismissed suggestions the Evolution listing was under review due to the market gyrations, and said that the board and prospectus documentation was being finalised.

The prospectus is expected to be lodged in the next two weeks. The plan is to raise $35 million from the issue of 70 million shares at 50c each.

The public offer will represent approximately 45 per cent of the company, which will be fully capitalised at almost $80 million.

While Seven's online business i7 (which has also signed content agreements with Evolution) will have 12.5 per cent of the business, Evolution's equipment supplier, Lucent Technologies, will also be issued options. If exercised, these would give Lucent about 5 per cent of Evolution.

Evolution has also signed a content agreement with Beyond International and is expected to start offering its first broadband Internet connection this month.

And while Internet gaming company Lasseters Holdings said it planned to postpone its sharemarket debut, sources said the listing of interactive gaming group gocorp.com was on track, with the issue opening today. That company is raising $20 million from the public

AAPT Takes Stake in Evolution
Tuesday 17th October 2000

AAPT, Australia’s third largest telecommunications carrier, today announced that it will take a 12.5% equity stake in leading convergent information provider, Evolution Technologies (Australia) Limited (Evolution), joining Meriton Apartments and Seven Network Limited’s Pay TV subsidiary C7 (C7), who are also shareholders.

Evolution, which is set to make its stock market debut later this year, is a convergent information supplier concentrating on delivering telecommunications solutions to consumers in multi storey residential buildings and cluster housing, via its Local Area Network.

The Company’s current consumer product and service offering include an "always on" broadband internet service and cable TV, with telephony and video on demand services expected to be available in 6-12 months time.

Evolution, through its strategic relationship with Meriton Apartments, which has a 10% stake in the company, is already delivering its "always on" broadband internet service to two major residential buildings in Sydney with several more cabled and awaiting occupation. To deliver these services Evolution is currently cabling in excess of 20 Meriton sites and several other buildings including the Renzo Piano residential tower in Macquarie Street, Sydney. The Company is also retro fitting existing buildings with ADSL switches in order to implement its service.

Content for these services are being provided by the C7 and Beyond International (Beyond).

As a shareholder and a strategic partner, AAPT will provide Evolution with backbone network carriage needed to deliver these services and over the longer term will deliver telephony services to residents in buildings connected by Evolution.

AAPT’s acting Chief Executive Officer, Mr. Ron Nissen said residential consumers are today seeking a much broader portfolio of products and services than in the past, including telephony, high speed Internet, pay TV and video on demand services.

"This relationship with Evolution will allow AAPT to leverage its expertise in the provision of high speed access, and telephony and Internet services to this market place," said Mr. Nissen.

Mr. Hart Mailandt, Managing Director of Evolution said "We are delighted to have secured this strategic alliance with Australia’s third largest telecommunications carrier which will provide users of our high speed network access to AAPT’s telephony services. We also see tremendous opportunity in marketing our services directly to AAPT’s significant customer base and entering co-marketing arrangements with AAPT.

"The alliance with AAPT demonstrates our ability to forge alliances with leading participants including Seven Network Limited’s Pay TV subsidiary C7 and Beyond International Limited. Evolution’s intelligent network is capable of accessing the best services currently available with the capacity to receive the services of the future which will include video on demand, IP telephony and the virtual office", Mr. Mailandt said.

Evolution has appointed Ron Nissen, acting Chief Executive Officer of AAPT as a director of the Company.