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7 May 2001

COMPUTERSHARE SURVEY CONFIRMS INCREASING USE OF TECHNOLOGY FOR INVESTOR COMMUNICATIONS IN AUSTRALIA

The results of the annual Computershare Investor Relations Practice Survey of S&P/ASX 200 companies highlights the growing use of technology as an effective and efficient means of communication between companies and investors.

Mr Ian Matheson, Managing Director of Computershare Analytics, said: "Overall, the survey demonstrates an increasing commitment by a larger number of companies and trusts in the S&P/ASX 200 to technology to maintain and enhance their relationships with the investment community."

"It is also apparent from the results of the survey that a growing number of listed entities are embracing best practice in their investor relations."

"The sentiment remains consistent that innovations will improve the flow and quality of information to investors and the broader market, with the majority of respondents believing that the added cost of new technologies is of benefit to shareholders."

The survey, the third conducted by Computershare Analytics - the investor relations consulting arm of Computershare Limited - sets out to identify trends in investor relations practice and the use of technology by listed companies and trusts in the dissemination of information to the investment community.

The results represent the practices of 49% (by market capitalisation) of the S&P/ASX 200 to the year ending March 2001 and examines the communication of results announcements, attitudes towards new ASIC disclosure requirements, use of technology for shareholder meetings and corporate interaction with analysts.

The survey highlighted a number of key technological trends in technology based investor communications, including:

General Results

  • Increased use of company websites for timely and efficient release of financial results with 98% of respondents posting full financial results on their website
  • Increase in pro-active disclosure with 92% of respondents releasing their results presentation to their website, with most releasing on the day of the results announcement
  • Increase in usage of conference call facilities as a new innovation with audio replay facilities available on websites
  • Increased usage of webcasting for results presentations accompanied by video replay facilities on corporate websites
  • Growing trend for companies to prefer hosting separate media briefings than to combine briefings with analysts
  • Change in trend, as companies facilitate improved access for overseas investors, to participate in their Australian briefing (real time) rather than undertake separate conference calls
  • Rapid improvement in the quality and timeliness of the release of financial results and analysts' briefing information to company websites is considered an important initiative in offsetting historic concerns over retail shareholder access to market sensitive information

Cost/ Benefit Analysis of Improved Quality of Disclosure

  • Corporate sentiment remains consistent that innovations will improve flow and quality of information to investors and the broader market. As a consequence, companies are currently spending more on webcasting and/or conference call facilities for their results presentations than previously.

Shareholder Meetings

  • Increasing support by companies to use new technology for electronic proxy voting and webcasting their shareholder meetings.
  • A significant proportion of respondents confirmed that they are looking to introduce these new initiatives over the next two years and address the major concerns over security and access/technology for all shareholders.

Corporate Interaction with Analysts

  • There exists strong evidence of corporate best practice, in line with ASIC principles, with regard to the conduct and frequency of one-on-one meetings with the investment community.

Disclosure Policy Practices

  • Most companies have indicated their commitment to establishing and maintaining a formal company disclosure policy, preferably in writing.

Mr Matheson, who is also Chairman of the Australasian Investor Relations Association, said the results represented an encouraging trend that would continue to benefit both investors and listed companies.

Please click here to download or view the full survey

For further information contact:

Ian Matheson
Managing Director
Computershare Analytics Pty Ltd
Telelephone 02-8234 5253
Mobile 0419-444 731

Peter Ryan
Weber Shandwick Worldwide
Telephone 03-9615-4018
Mobile 0411-055-274

About Computershare Limited

Computershare Limited is incorporated in Australia and has a market capitalisation of about A$4.0 billion. It has grown rapidly from its base as a provider of computer bureau services to transfer agents in Australia, and is now the world's largest, and only global, transfer agent with major transfer agent and employee share plan businesses in Australia, New Zealand, the United Kingdom, Ireland, the Channel Islands, South Africa, Hong Kong, the USA, and Canada. Computershare maintains over 61 million shareholder accounts worldwide and also supplies financial markets software to exchanges and market participants in Europe, North America and Asia. For more information, visit the company web site at www.computershare.com.

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