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26/03/2002 4:50:00 PM

ASX-Cape Range Wireless LimitedNew Order - Early Cashflow


HOMEX - Perth

The Company takes pleasure in announcing that Kris Global has
confirmed that Cape Range Wireless ("Company") will supply 7,700
telephone access lines into a subdivision near the City of Ipoh in
Perak State, Malaysia ("the Perak Order").

Field installation of the Cape Range Wireless Arcadian r8/b8 product
line into the Perak order, through the Company's distributors Kris
Global Communications, will commence later in the second quarter of
calendar 2002.

The value of this order is in excess of AUS7,000,000. The
installation of the first 600 lines for the contract will commence
this June and be completed by October. The components for the first
600 lines are currently being purchased and the units are being
produced by ITS (Infinite Test Solutions), a Malaysian based high
quality manufacturer. Kris Global anticipates many similar sized
orders in Perak State and other parts of Malaysia. During the period
of installation for the Perak Order, field installation for the
Company's major order of 120,000 lines will also commence.

The delay in field roll-out for the Company's 120,000 line contract
resulted from the customers request for V5.2 signalling. This
interface is being favoured in much of Southeast Asia. The company
has found it expedient to purchase V5.2 software in order to
accelerate the integration into the product line, as an alternative
to SS7 signalling which is required by many other Telcos. With the
addition of V5.2 signalling protocol to our suite of SS7 signalling
and R2 signalling software, the Arcadian product line covers all
major signalling standards in use today.

In order to maintain its lead and to fund production including
acquisition of components, Cape Range Wireless is organising funding
via a convertible note of not less than $4 million, with the funds
being available immediately.

The material terms of the convertible notes are attached to this
announcement as Annexure "A".

With this funding in place, the Company will be able to ensure that
it can roll-out product to customers in the second quarter without
delays. The support of noteholders, together with that of
shareholders will enable the Company to maintain the momentum of the
past 6 months. The directors intend to offer noteholders and
shareholders alike, a deeply discounted share issue at a maximum
price of 5 cents per share or 20% of market price, whichever is the
lower as certain successes materialise.

Since deploying it's equipment in the KL Tower in Kuala Lumpur the
Company has been able to demonstrate the capability of its product
line to prospective telecommunications companies and system
integrators. These demonstrations have been made to parties from many
parts of the globe. The size of potential orders vary from as low as
500 lines valued at A$500,000 to 500,000 lines with a value of A$500

The location of Cape Range Wireless in Kuala Lumpur is strategic for
this market.

A base station recently installed in the Company's Perth office has
been tested in numerous locations around Perth to demonstrate voice
quality and ease of installation. Customer demonstrations will
commence after Easter.

With revenue commencing in the third quarter and accelerating in the
quarters ahead, the Company has resumed its plans to seek a listing

Ron Wise
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