· Consideration of $74.5 million (subject to potential adjustment) to be satisfied as to $71 million by vendor placing of Intec shares and as to $3.5 million from cash resources

· The Acquisition is expected to be earnings enhancing in the first full year of ownership (to 30 September 2005) and to substantially increase revenues

· The Acquisition is to be part-financed by a vendor placing of approximately 60.4 million Intec shares to existing shareholder General Atlantic Partners (“GA”), increasing its holding to approximately 25.6%

· The Acquisition is subject to Intec shareholders’ approval at an EGM. Shareholders should expect to receive a circular relating to the Acquisition in July 2004

Rationale for the acquisition:

Allows Intec to enter the largest sector in the Operations Support Systems ("OSS") market - retail or customer transaction billing.

The retail billing market is approximately the same size as all other sectors of the OSS industry put together.

Contracts for retail billing are typically 5-10 times larger than for Intec’s current main markets of mediation and interconnect

Singl.eView product line is widely reported to be one of the top retail billing solutions available

Singl.eView has over 70 Tier 1 and Tier 2 carrier clients in 17 countries, including Deutsche Telekom, Virgin Mobile, Hutchison 3G, Optus, and Reliance.

Intec is already a significant participant in two of the key OSS sectors, inter-carrier billing and convergent mediation, and the addition of a strong capability in retail/transactional billing will substantially extend Intec’s ability to supply its carrier customers with the main operational systems required by telecommunications companies. The retail billing market is approximately the same size as all other sectors of the OSS industry put together, and the largest OSS contracts are signed in this area.

Due to its size in relation to Intec, the Acquisition is conditional on the approval of Intec shareholders which will be sought at an extraordinary meeting this summer (the "EGM"). Irrevocable undertakings to vote in favour of the Acquisition at the EGM have been received from shareholders holding over 40% of the existing ordinary share capital of Intec.

Commenting on the Acquisition, Intec Executive Chairman, Mike Frayne, said: “This acquisition will place us in the top tier of global OSS vendors, with the scale, customer base and product set to compete on equal terms for the largest billing and OSS contracts in the market. Intec currently has strong contract momentum in its core OSS business, and the acquisition of one of the industry’s most recognised retail billing companies will increase our presence in the largest, most influential telecoms software market.”

Intec CEO, Kevin Adams, added: “As a consequence of this transaction, Intec will be a leading OSS products company with over 450 customers and 600 installations, and a broad, technically advanced OSS product offering. Singl.eView is an award-winning product that fits logically into our current OSS architecture and allows us to substantially broaden our offering to customers worldwide.”

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