MACQUARIE TECHNOLOGY GROUP LIMITED — AGM Information 2004

Nov 28, 2004

Annual General Meeting 29 November 2004

Chairman's Address

Financial Highlights

2004 Financial Highlights

• EBITDA profit of \$7.9 million, up \$5.1 million on $[OO]$
• Net loss after tax \$787,000, improvement of FY03 loss of \$4.7 million
• Total service revenue of \$226.9 million, down $3.2\%$

Macquarie Télécom's EBITDA continued to exew

An evolving revenue base from voice to data

• Voice revenue erodes, but earnings grow

• Data revenue grows 25.3% to \$51.1 million
• Early investment in Intellicentre delivering positive growth
• Mobile business competitive necessity for bundled solutions
• Singapore holds ground in local currency despite aggressive price reductions

Macquarie Télecom is in a strong position

• Strong cash position of \$31.8 million at 30 June 2004
• Operating cash flow of \$14.0 million
• $\bullet$ No debt
• Increased investment in technology and customer services in 2005

Well established fundamentals

EBITDA Growth

Capital investments

• Lay the foundations for the future

• Metro Access Network
• position Macquarie Telecom as a full service carrier
• leverage the increasing convergence of voice and data communications
• Further invest in security
• Building the Macquarie Telecom brand
• Extension of new IP based data and voice capabilities to support MNC (Multi National Clients) in Asia

The road-map for long-term growt

. Investments will impact short-term EBITDA profitability

• 1^st Half EBITDA = around breakeven and not exceeding a \$1 million loss
• $2^{nd}$ Half EBITDA = back on growth path

Investing for the future

Board changes

• Robert Kaye appointed Chairman · Stephen Butler joined as Non-Exec Director · John Palfreyman joined as Non-Exec Director

. Focus on newly defined strategies

• Build customer base and become integral part of customer's businesses
• Improve efficiency, competitiveness and performance
• Enhance our depth and breadth of expertise
• Position Macquarie Telecom strongly in evolving and converging telecommunications market

Goals and strategies

Australian Data Business

• Strong revenue growth up 25.3% on FY03 to \$51.1 million
• All growth is organic
• Data 24.5% of total revenue in second half of year

• Leverage competitive strengths in data services • "Gateway" certification and increasing security
• awareness drives momentum in Data hosting revenue growth
• Well placed to benefit from convergence in telecommunications and its inherent security requirements
• EBITDA profit of \$4.2 million (\$3.3 million loss FY03)

Intellicentre is now showing positive growth

• An IP based Metro Access Network
• The next stage of Macquarie Telecom's evolution
• Leverage the increasing convergence of data and voice
• Enhance capacity for product development
• . Improve service delivery, security and end to end customer management

Competitive advantage

Security investment

• Inherently complex electronic security requirements emerging
• · Invest in necessary equipment and expertise
• Achieve high levels of security accreditation
• Intellicentre hosting business is now delivering positive growth
• a dedicated world-class complex hosting facility
• staffed by highly skilled specialists
• available 24 hours a day

The high value of security

macquarie

New Brand, New Name

• New logo four overlapping circles
• · New name Macquarie Telecom
• a change from Macquarie Corporate Telecommunications
• Entirely reflects the company's positioning
• Part of our evolution to a provider of converged communications and data solutions

To better reflectific company states than inc.

Competitive Carriers Coalition

• An industry grouping together on common policy and requlatory issues

• Macquarie Telecom a co-founder
• Aims to improve the structure of the industry and enhance competition

Influencing regulatory outcomes

Annual General Meeting 29 November 2004