PHONEWARE LIMITED (ASX.PHO)

name changed to Rattoon Holdings Limited

the company has not paid its annual listing fee - it will be removed from the official list on 1 September 2003 if it does not pay the fee by Friday Aug 29

a liquidators declaration has not been issued and shareholders are unable to claim their loss - as the proposed restructure etc is now proceeding, shareholders (if they wish) will be able to crystallise their loss by selling their shares on-market if and when the company regains quotation - in the meantime any shareholder who wishes to sell or acquire Phoneware shares can contact Michelle Kostros of Bell Potter Securities Limited on (03) 9256 8700

resolutions (as noted below on 03/06/2003) passed at General Meeting of shareholders held today

company advises that if any shareholder wishes to sell or acquire Phoneware shares enquiries can be directed to Michelle Kostros of Bell Potter Securities Limited on (03) 9256 8700

company provides Notice of Meeting (for 1 July 2003) to consider resolutions proposing: changing company's activities to those of an investment company, changing its name to Rattoon Holdings Ltd, consolidating shares and options on the basis of 100 becoming 1 of each, issuing 25 million new shares at 25c, appointing various directors and replacing the auditor - the company will acquire interests in large private companies and in due course seek re-quotation of its securities

Sirius Telecommunications Limited advises that 4,500,000 shares issued to the administrator of Phoneware Limited on 19 April 2002 as part of the acquisition by Sirius of certain operating subsidiaries of Phoneware Limited, will become unrestricted as from 19 April 2003

directors essentially confirm that opportunities for relisting are being explored - there is still an expectation that this should be possible by 30 June 2003 - the existing shares of course have little if any value - any capital loss would be crystallised by sale of shares on market after relisting - if a relisting is what happens!

deed administrators expect the sales process to be completed within the next three months and the DOCA to be effectuated - control of the company will then revert to directors who are evidently investigating possible use of the shell - if this proceeds it is likely to do so by June 2003 otherwise the company will be wound up - we will seek further information from directors

Not delisted - suspended 2/04/02 - releases can be viewed at www.asx.com.au

administrators confirm they do not expect there to be any surplus funds after settlement of the claims of creditors - further the process of selling assets and distributing funds to creditors may take up to twelve months

administrators announce sale of Phoneware's three operating subsidiaries to Sirius Communications Ltd - it is unlikely that surplus funds will be available from the sale for distribution to shareholders

administrators announce group will continue to trade "business as usual" with existing management remaining in place subject to the administrators' direction - administrators will continue to pursue a sale of the subsidiaries which conduct the group's business - a Deed of Company Arrangement is proposed by directors with respect to Phoneware Limited and any subsidiaries which are not sold under present plans

board appoints J Lindholm and J Spark of Ferrier Hodgson as voluntary administrators in view of recent trading conditions and advice directors had received that successful completion of the sale of its businesses would thus be expedited

securities of company suspended from quotation

announces sale of its internet subscriber business (Phoneware Online) to Affinity Internet Holdings PLC - ending the company's involvement in the provision of internet services and allowing a focus on the core business of communications management and billing