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Acquisition marks further Australian expansion

Acquisition marks further Australian expansion

Wed, 2 Mar 2005

Provenco Group announces further Australian expansion with significant acquisition

Provenco Group Limited (NZSX:PVO), a business technology company, has outlined the final stage in its strategy to become a significant Australasian mobile and wireless, and retail technology distribution company.

Provenco Group today announced plans to acquire Melbourne-based company Vantex Pty Limited. This intended expansion in the Australian market complements the earlier acquisition of Sydney-based Javelin Systems (Asia Pacific) Pty Limited and will position the company as Australasia's largest distributor of mobile and wireless, and retail technology, with distribution centres in Sydney, Melbourne, Auckland and Christchurch.

David Ritchie, CEO of Provenco Group, says the Vantex acquisition provides the Group with a solid revenue and profit base going forward and will become a significant and stable part of the Group's business.

"The acquisition of Transtech Distributors in New Zealand in September 2003 was the first step in our strategy and expanded our mobile and wireless, and retail technology distribution capabilities considerably. Now, we propose to further extend this capability into Australia through the proven distribution competencies of Javelin and Vantex.

"Vantex has a solid reputation in Australia, founded on a strong 18 year history. It provides a very good fit with our existing businesses and its scale and positioning in the Australian market provides a strong platform for growth and will enable us to broaden our product offering," says Mr Ritchie.

Vantex management will continue in the business.

Associated with the purchase of Vantex Melbourne is the planned acquisition of Vantex Wholesale Distributors (NZ) Limited, a company based in Christchurch, New Zealand.

"The Vantex Christchurch distribution business would strengthen the existing Transtech business in New Zealand, providing a distribution and warehouse base for the South Island," says Mr Ritchie.

The purchase price for the Vantex Melbourne and Vantex Christchurch businesses is approximately A$ 18.6 million, which is payable in a combination of Provenco shares and cash. The addition of these businesses will result in incremental operating profit in this financial year. The acquisition is conditional on completion of due diligence.

ENDS

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