CAPstart Update - Welcome

March 2004

News Items:

• CAPstart Private Equity has got off to a good start in 2004 and it promises to be an active year in the private equity market:  

• In line with the tightening regulations and compliance practices in the Financial Services sector, we are pleased to announce our ASIC Financial Service Licence has been received

• Donovan Wearne has joined us as Director Business Development and Marketing. Donovan has a degree majoring in environmental sciences and has worked for leading multinational organizations in senior management roles in Australia and overseas and has managed some of the countries largest brands. He has also worked for several exciting start-ups and in own business development consultancy.

For those of you who are not familiar with Pacific Capital and its corporate advisory services or if you would like to explore an investment opportunity please feel free to come in and meet us. The more we learn about your interests the more we can help.

We trust you find this newsletter of interest,

• Successful Raising

• New CAPstart Listings

• Existing Listings Update

Successful Raising

SME No 660. Gazelle Monitoring Systems Pty Ltd has agreed with a Pacific Capital Angel Investor to subscribe for $600,000 of new capital. Gazelle has also received its first major order from a leading international company for its remote GPRS monitoring device. The new capital will be used for working capital to produce this first order. 

New CAPstart Listings: 

If you wish to see further information on the above SME and you are not already an Investor/Subscriber please click on the link below to go to the Investor/Subscriber registration form. www.capstart.com.au/cpems/html/cpems_inv_sub_reg_form_01.html 

If you are already an Investor/Subscriber logon using your User Name and Password. To logon click below www.capstart.com.au/cpems/html/cpems_sme_interactive_database.html  

Existing Listings Update:

SME No 612 Revolutionary Vending Machine for hot food business  

• Raised $1 million from existing shareholders to purchase first 25 machines and add to working capital.

• Signed first food supplier licensing agreement to vend "Four & Twenty Pies", one of Australia's most recognized brands.

• To further accelerate market penetration with additional machines company is planning to raise a further $2 million.

SME No 604 Digital photographic processing business:

•  First 75 photo printing digital kiosks (Kodak branded) now placed into KMart stores with a further 120 on order.

• Agreement signed with Hanimex -Fujifilm distributors to place photo printing digital kiosks into additional major retailers.

• Photographic print home ordering software launched and marketed through the photographic retail trade. (who then directly benefit from online repeat business generated)

SME No 583 Low Cost Micro Cogen System for households:

• Offer received from major Japanese trading house for co-development and licensing agreement for Japan and Asia, currently under consideration  

SME No 561 Unique International Business Leadership Assessment Tools

• USA distributor signed and export revenue being received.

• New Zealand distributor (exclusive agreement) signed and export revenue received.

• Early stage negotiations with South African and Asian distributors.  

• IP translated to German, Italian and Afrikaans and, Application testing commenced in those countries

• On track for sales year ended 30 June 2004, $500,000   

SME No 554 Making water from air

• First 50 machines manufactured in China

SME No 474 Unique Lighting Systems for Roads and Airports 

• Installation completed for 2 aerodrome lighting systems
• MOU with BlueTooth development company to commercialise in-road data point technology.
• Opportunity with major car manufacturer to install trial site.
• First PaveLite samples sent overseas (Malaysia)
• New generation LED airport lights delivered for compliance testing.
• Distribution agreement signed with major European traffic signal manufacturer for Australian projects

  If you wish to see further information on the above SMEs and you are not already an Investor/Subscriber please click on the link below to go to the Investor/Subscriber registration form. www.capstart.com.au/cpems/html/cpems_inv_sub_reg_form_01.html 

If you are already an Investor/Subscriber logon using your User Name and Password. To logon click below www.capstart.com.au/cpems/html/cpems_sme_interactive_database.htm

Regards

Peter Thomson/ Michael O'Neill/Donovan Wearne
02 9247 7126 

11March 2004