SEQUOIA FINANCIAL GROUP LTD — Capital/Financing Update 2005

Mar 13, 2005

ASX/NZSE Release 14 March 2005

CommSoft Group Limited Market Update

CommSoft Group Limited ("CommSoft") is a public company listed on the ASX and NZSE and its shares are currently suspended from trading. CommSoft continues to work with the MDSnews Group under the conditional Heads of Agreement towards the acquisition of the MDSnews Group. Completion of the acquisition is a precondition to the recommencement of trading of CommSoft on the ASX.

CommSoft now wishes to advise that as a part of this progress it has successfully completed a capital raising, representing $270,000 of additional working capital via an issue of secured convertible notes to fund the costs associated with the proposed recommencement of trading and to redeem some of the existing secured convertible notes.

Commsoft has also received undertakings through a Deed of Variation of Rights from existing convertible noteholders to either redeem or convert their notes, subject to the proposed recommencement of trading in the company's shares. The majority have elected to convert their notes into shares rather than seeking redemption, thereby reducing the capital raising that will occur upon recommencement of trading.

Finally, CommSoft is delighted to advise the appointment of Mr. Bruce Suttor Ind as a nonexecutive director and company secretary of CommSoft. Bruce has previous public company board experience having served as a director of Wytomic Limited. Mr Garth Grundy has announced his intention to resign from the board of directors due to other commitments which preclude him from acting on the board effective 11 March 2005. The directors wish to express their sincere thanks to Garth for the tireless work that he has performed for CommSoft and its shareholders.

Proposed Timetable

Subject to ASX and NZX Listing Rules and Corporations Act requirements and satisfaction of all the conditional elements of the proposed transaction, including the planned capital raising pursuant to the issue of a prospectus and obtaining CommSoft shareholder approval, the Company anticipates completion of the aforementioned transactions in accordance with the following timetable (which is subject to change by the Company in consultation with its advisors):

March 2005	Collective due diligence finalised
April 2005	Despatch of Notice of EGM to CommSoft shareholders and issue of aProspectus
May 2005	CommSoft shareholder EGM and closing of Prospectus offer
May 2005	Complete Share Purchase Agreement with MDSnews shareholders andissue consideration shares to MDSnews shareholders
June 2005	Re-admission of CommSoft securities to trading

Further enquiries should be directed to Jeff Zulman, Chairman, CommSoft Group Limited Tel: (612) 9251 7944 Fax: (612) 9251 7948 or email: jzulman@coyne.biz.