Leighton supports Nextgen restructure

Company Announcements Office
The Australian Stock Exchange Limited
Level 4
20 Bridge Street
Sydney NSW 2000

Re: Leighton supports Nextgen restructure

Dear Sir,

Please find attached copies of media releases to be issued today by Leighton Holdings Limited and Nextgen Networks Pty Ltd.

Yours sincerely,


A.J. MOIR
Company Secretary

Leighton supports Nextgen restructure

Issue Date: 18 October 2002
Issued by: Leighton Holdings Limited

Leighton Holdings today reaffirmed its commitment to Nextgen Networks and the recently announced restructuring of Nextgen’s funding.  

Leighton Holdings’ Chief Executive, Mr Wal King AM, said that the restructure of Nextgen’s funding will ensure that the roll out of the network is completed and allow Nextgen to establish an ongoing business.

“Our wholly owned subsidiary, Visionstream, is progressing well on construction of the 8,000 km national interstate fibre optic network,” said Mr King.

“The Sydney – Melbourne leg of the network was launched in October. The entire network linking Brisbane through to Perth is expected to be completed in the second quarter of 2003.

Leighton’s 20% equity stake in the project, worth $92 million, which was originally intended to be contributed in 2003 will be brought forward to October 2002.

Leighton’s revenue guarantee has been converted to a $50 million subordinated loan which is to be provided to Nextgen in June 2003. An additional $8 million of subordinated debt will be provided by Leighton in January 2003.

Lucent Technologies, a major subcontractor to Visionstream, has also reaffirmed its financial commitments to Nextgen as part of the restructure.

For further information:
MR DIETER ADAMSAS
Deputy Chief Executive Officer & CFO
Ph:  (02) 9925 6923

MR JUSTIN GROGAN
Manager Investor and Media Relations
Ph: (02) 9925 6628

Nextgen Networks confirms long term financial backing. Company well positioned for growth and industry consolidation.

Issue Date: 18 October 2002
Issued by: Nextgen Networks

National carrier Nextgen Networks confirmed the company had completed a restructure of its balance sheet and reaffirmed its commitment to bring competition to the national capital city transmission market.

During a general industry down turn Nextgen has emerged with a stronger balance sheet with reduced bank debt.  

The company has ‘project finance’ funding for the completion of its national network and has now restructured its longer term facility to confirm the planned funding through to 2005 – allowing a substantial period to fully establish the business.

Nextgen now has increased support for the initial development of the business and the flexibility to pursue industry development opportunities.

Phil Pryke, Nextgen Networks Chief Executive said, “Nextgen has the full support of our shareholders and financial partners who believe the company is well positioned to capture new business, particularly as bandwidth demand continues to grow, and to become a competitive force within the industry.”

Nextgen’s banking, equity and strategic partners include:  Leighton Holdings, Lucent Technologies, Deutsche Bank, National Australia Bank and West LB.  

Nextgen launched the Sydney – Melbourne leg of its network in October.  The Sydney - Brisbane and Melbourne - Adelaide legs of the network are on target to complete in December this year with Perth completing in early 2003.

For further information:
Kristin Meagher:  02 9032 3511