ELDERS LIMITED — Capital/Financing Update 2008

May 7, 2008

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8 May 2008

Company Announcements Office Australian Securities Exchange Limited

Equity raising & iiNet Limited investment

Amcom Telecommunications Limited (ASX: AMM, AMMO) announces that it has accepted a placement of 5.7m iiNet Limited (iiNet) shares at $1.60 each or $9.2m. Amcom’s share of the iiNet placement will retain Amcom’s stake as the largest shareholder at 22.4%. The equity raising by iiNet of $41m is to enable it to complete the acquisition of another national broadband provider, Westnet.

“We are delighted, as the largest shareholder, to support iiNet in this transaction. The Westnet acquisition will consolidate iiNet as the third largest ISP in Australia with a combined national customer base of active services numbering over 680,000”, said Clive Stein CEO.

Amcom has in turn raised $6m in equity with the issuance of 30,000,000 ordinary shares at 20 cents each. Futuris Corporation Limited has provided $3m of the equity and with the balance placed with two institutions. The remainder of the investment has been funded by debt.

Amcom re-affirms its recent earnings upgrade of at least a 30% increase in the key performance measures of revenue (excluding projects), EBITDA and net profit before earnings from associate for 2008 over 2007 and an outlook for 2009 of at least a 25% increase in net profit before earnings from associate over 2008. It is anticipated that the impact of this equity raising and further investment in iiNet will have a neutral impact on 2009 EPS.

In addition the earnings from our wholly owned business units as per guidance, based on consensus forecasts for iiNet, we expect earning from this associate to be a minimum of $3.5 million for FY2008, taking Amcom’s reported net profit after tax to a minimum of $9m. A much stronger contribution to Amcom’s reported earnings is expected in FY09 from our stake in iiNet based on the Westnet transaction.

Level 18, St Martins Tower 44 St Georges Terrace Perth Western Australia 6000

www.amcom.com.au Phone: +61 8 9244 6000 Amcom Telecommunications Limited ACN 062 046 217 Facsimile: +61 8 9202 1333

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This brings the cost of our investment in iiNet to $35.5m and based upon placement price of $1.60 values the investment at $54m. Based on the continuation of iiNet’s dividend performance this provides a dividend cashflow of a minimum $2.7m or around a 7% fully franked yield on our cost.

At completion of this transaction Amcom has cash and undrawn bank facilities available of $17m with balance sheet gearing of 14%.

Currently both companies sell services to each other and are continually exploring further opportunities.

A copy of the associated iiNet announcement is attached.

For further comment and information.

Clive Stein Managing Director & CEO Tel (08) 9244 6022 clivestein@amcom.com.au

David Hinton Company Secretary Tel (08) 9244 6031 davidhinton@amcom.com.au

about Amcom

Amcom Telecommunications Limited is an ASX listed company providing telecommunications services to corporate, government, SME, retail and other telco’s.

Amcom operates as two complementary divisions. The Fibre division provides high speed data links to clients through its own extensive fibre network covering the CBD and greater metropolitan areas of Perth, Adelaide and Darwin. Amcom also provides data centre and voice services to its business clients.

The Amnet division provides a comprehensive range of communications products focussed principally on Broadband services.

Amcom has established infrastructure, proven technology and a customer focussed product suite aimed at delivering sustainable equity returns.

www.amcom.com.au

Amcom Telecommunications Limited ACN 062 046 217

Phone: +61 8 9244 6000 Facsimile: +61 8 9202 1333

Level 18, St Martins Tower 44 St Georges Terrace Perth Western Australia 6000

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8 May 2008

IINET TO ACQUIRE WESTNET

iiNet to Consolidate its Position as Australia's Third Largest ISP

Perth, Australia – iiNet Limited (ASX: IIN) today announced the signing of an agreement with the owners of Westnet Pty Ltd ("Westnet") to acquire the entire issued capital of Westnet for $81million to be satisfied by a cash payment to the owners. iiNet will retain the Westnet brand and staff. The sale is expected to be completed by the end of the month.

In order to fund the acquisition, iiNet raised $41 million by way of a placement of 25.6 million ordinary shares in the Company at $1.60 per share to institutional and sophisticated investor clients of Euroz Securities Limited. The remainder of the acquisition price is funded via a combination of cash and debt. The acquisition will not limit iiNet’s ability to pay future dividends.

The acquisition of Westnet, Australia's sixth largest internet service provider ("ISP") and one of the last significant subscriber bases on the market, reinforces iiNet's position as the third largest ISP in Australia and a serious competitor to the nation's biggest telecommunications companies. With Westnet's 215,000 active services, including 138,000 broadband users, iiNet's total number of active services will grow to over 680,000, including over 470,000 dialup and broadband subscribers.

Westnet has grown nationally via a strong national reseller network and industry leading customer service levels with particular strength in regional areas. Like iiNet, Westnet is particularly strong in Western Australia. The combined subscriber bases will give iiNet a market share of over 30% in the state.

"This transaction brings together two of Australia’s best loved ISP brands,” said Michael Malone, Managing Director of iiNet. “Both Westnet and iiNet have always focused on genuine plain speaking customer service, seeing that as the only really sustainable differentiator in our business. Westnet has consistently set the benchmark for service in our industry, and I look forward to learning how we can improve iiNet’s service even further. iiNet brings a good history of innovative products and technology, which we also expect to be able to share with the Westnet team.”

Managing Director of Westnet, Peter Brown, said "Westnet has worked very hard over a long period of time to build its reputation of award winning customer service. This opportunity allows the company to continue that same level of customer service and also offer many new products to our agents and customers. As all staff, including senior management, are staying on, we see little change in our operations and

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consider this as a great opportunity for both our customers and staff. We look forward to the future with confidence that we can provide a unique service to our customers from both ISPs."

Westnet will continue as a separate operating entity. Westnet’s management and brand, which is synonymous with industry best customer service, will be retained whilst the Company intends to capitalise on the opportunities that this acquisition offers. Existing products will continue to be marketed under the Westnet brand and supported by the Westnet team.

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