October 26, 2006

Deutsche Bank initiates coverage of PowerTel Limited

Deutsche Bank has initiated coverage of telecommunications stock PowerTel Limited (ASX: PWT), with a Buy recommendation.

Research analyst, Douglas Farrell initiated coverage with an A$1.60 price target.
Mr Farrell said “PowerTel’s earnings growth profile continues to extract the benefits of new and existing customer relationships and an ongoing cost management program.

“The network is scaleable, and serves as a platform for additional revenue generating initiatives at relatively low incremental costs, whilst the strategic alliance struck with iiNet should also reduce PowerTel’s reliance on the larger telecommunications companies.

“Within an already discounted telecoms sector, PowerTel’s valuation is highly attractive given its positioning as a potential target or participant in further industry consolidation,” he noted.

PowerTel is a telecommunications company with a 3,000 kilometre fibre optic cable and DSL network in Australia. The network stretches from Brisbane to Melbourne, connecting capital cities along the east coast, and is specifically designed to provide broadband services to corporations and governments, competing with players such as Telstra and Optus.

Equity rating recommendations are based on expected total return (including dividends):

Buy: 10% or more over a 12-month period
Hold: between -10% and 10% over a 12-month period
Sell: -10% or worse over a 12-month period

For further information, please call:

Cathy Knezevic +61 2 8258 2792 or Kate Abrahams +61 2 8258 2416

Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With Euro 1,058 billion in assets and 65,435 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.