Leading Australian provider of broadband hardware solutions, NetComm (ASX: NTC), today announced an agreement to acquire the remaining 19% of Askey Australia currently held by leading modem manufacturer, Askey Taiwan. In December 2005, NetComm purchased New Zealand modem vendor, Dynalink modems, which included 81% of its Australian subsidiary, Askey Australia.

  • Acquires remaining 19% of Askey Australia from Askey Taiwan
  • Formalises alliance with worlds largest contract manufacturer of broadband modems
  • Provides significant buying power to reduce manufacturing costs and improve profit margins

Leading Australian provider of broadband hardware solutions, NetComm (ASX: NTC), today announced an agreement to acquire the remaining 19% of Askey Australia currently held by leading modem manufacturer, Askey Taiwan. In December 2005, NetComm purchased New Zealand modem vendor, Dynalink modems, which included 81% of its Australian subsidiary, Askey Australia.

The cost of the acquisition equates to 19% of the net tangible assets of Askey Australia, which markets the Dynalink brand in Australia and will make it a wholly-owned subsidiary of NetComm Limited.

In exchange for the purchase, Askey Taiwan will be issued with 2.053 million NetComm shares.

";This is a significant purchase for NetComm as it establishes an important alliance with the world's largest contract manufacturer of broadband modems,"; said David Stewart, Managing Director, NetComm.

"Although NetComm is a leading designer of broadband equipment for Australia, we have used offshore contract manufacturers for a number of years in order to maintain our price competitiveness."

";Going forward, the access to Askey Taiwan as one of our contract manufacturers should have a major benefit to NetComm's profitability due to their immense buying power. It will help us to reduce our manufacturing costs and increase our margins.";

For more information:
David Stewart
Managing Director NetComm
(02) 9424 2000