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PocketMail Corporate

15 March 2002

Appendix 4B

PocketMail now positioned to generate positive cash flow from operations, and on path to profitability

• Receipts from customers were $7.09 million as compared to $1.25 million for the corresponding previous period, an increase of 567%;• Current creditors and accrued liabilities reduce by more than $0.70 million.

• Net operating cash flow deficiency for period was $0.61 million as compared to a deficiency of $2.26 million for the corresponding period, a reduction of 73%; and

• Capital raisings of $7.95 million made in last three months used to retire debt, reduce creditors and fund working capital requirements.

Sydney, Friday 15 March 2002 - PocketMail Group Limited (ASX: PKT), leading worldwide provider of affordable mobile e-mail services, released its Appendix 4B Half Yearly Report for the six months ended 31 December 2001.

Financial Results
The loss for the half year ended 31 December 2001 before interest, income tax, depreciation and amortisation was $2.95 million.

Deferred revenue, comprising cash receipts from customers not taken up in revenue during the period, increased from $1.03 million at 30 June 2001 to $2.93 million, a net increase of $1.90 million.

After provision for income tax and abnormals, the loss was $4.5 million (31 Dec 2000: $3.79 million).

Notwithstanding the loss to 31 December 2001 noted above, the Company made considerable progress in managing its cash position. The net operating cash flow for the period was a deficiency of $0.61 million as compared to a deficiency of $2.26 million for the corresponding previous period.

The Company raised $6.25 million in December 2001 from a renounceable rights issue, and a further $1.70 million in calendar 2002. The proceeds of these raisings were used to reduce the Company’s debt to just $1.0 million (other than short term equipment finance leases), reduce other creditors and fund working capital requirements.

Comments

PKT Chief Executive, David Marchant, commented:

“Following the recapitalisation of the Company, and the reduction in overhead achieved in the period, we are now positioned to generate positive cash flow from operations and ultimately achieve profitability.”

RELEASE ENDS

FOR IMMEDIATE RELEASE

Media Contacts:

David Marchant (CEO)
(408) 689-1241
San Jose, California
david.marchant@corp.
pocketmail.com

Richard Shaw (CFO)
+61 2 9955-0500
Sydney, Australia
richard.shaw@pkt.com.au

PR Contact:

Nanci Williams
Orloff/Williams
(408) 293-1791

About PocketMail:

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