United Australia Pacific Inc – ‘8-K’ for 11/30/00 – EX-99

On:  Tuesday, 12/12/00, at 8:35pm ET   ·   For:  11/30/00   ·   Accession #:  1014909-0-115   ·   File #:  333-05017

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         3      9K 
 2: EX-99       Miscellaneous Exhibit                                  2±     7K 

EX-99   —   Miscellaneous Exhibit

                                                                    EXHIBIT 99.1

AUSTAR TO ACQUIRE TARBS SPECTRUM                                                
23 Oct 2000                                                                     

Austar  United  Communications  Limited and  Television  and Radio  Broadcasting
Services Pty Limited today announced that they had agreed on the sale of TARBS's
2.3-2.4 GHz (MMDS) spectrum to Austar.                                          

This  spectrum  will give  Austar up to 98 MHz of  bandwidth  in each of Sydney,
Melbourne,  Brisbane,  Canberra,  Adelaide  and Perth,  suitable for high speed,
broadband data, video,  including interactive  television,  and ultimately voice
telephony using Voice over IP technology.                                       

Under the sale terms,  TARBS maintains its suite of A Band apparatus licences in
the 2.0-2.1 GHz range and also its transmitter sites and customer equipment.    

In  consideration  for the MMDS  spectrum,  Austar  has agreed to pay TARBS $140
million in cash and to also  explore  opportunities  to  distribute  TARBS's pay
television content over networks in which Austar or its parent, UnitedGlobalCom,
Inc. (UGC), have an interest.  Of the cash  consideration,  $110 million will be
paid on  completion  with the  remaining  amount plus  interest to be paid on or
before 31 August 2001.                                                          

"For some time  Austar has seen an  opportunity  in the  capital  city  markets,
especially  for high  speed  data  services  directed  at the  small  to  medium
enterprise,  SOHO and high user  residential  markets," said John Porter,  Chief
Executive of Austar United Communications.                                      

"The  acquisition  of this spectrum  gives us a low cost means of entering those
markets,  using technology with which we are very familiar and in a manner which
complements our regional strategy."                                             

Mike  Boulos,  Chairman of TARBS,  noted that  "Austar has chosen to acquire its
preferred  spectrum,  giving it a common platform in  metropolitan  and regional
Australia.  This deal  positions  Austar with a very  valuable,  cost  effective
transport  stream  which will allow it to deliver  wireless  broadband  services
Australia-wide."                                                                

"The  agreement  to sell only the MMDS  spectrum  delivers  to us the  necessary
funding  to  allow  TARBS  to  become  the  dominant   and  most   comprehensive
multicultural network in Australia", said Regina Boulos, Chief Executive Officer
of TARBS.  "Importantly,  this deal also paves the way for  closer  co-operation
with  Austar and its  parent  UGC for the  distribution  of  selected  TARBS pay
television content in New Zealand, Europe, South America and the United States".

Austar currently offers one way high speed internet access, together with chello
broadband,  throughout  regional Australia.  In December,  with its partners ADC
Inc.  and Cisco  Systems,  Austar  will begin a trial of two way high speed data
over the MMDS network.  Two way data systems are already  deployed on commercial
and trial bases in the USA and Europe.                                          

"The MMDS  spectrum  gives us the capacity to do everything we plan to do in the
cities.  It is available for use today. It will use the same equipment as we are
deploying in the regions and thus bring economies of scale," said Mr Porter.    

"Another  advantage  is the fact that an MMDS  network is  scalable in line with
demand.  Unlike a cable network there is no need to build out the network except
where there is a customer to service.                                           

"As a result of this  transaction  Austar will withdraw from the current 3.4 GHz
spectrum auction. We anticipate acquiring a small amount of spectrum through the
auction process in Sydney and Melbourne.  We believe that we will be able to use
that spectrum to complement our MMDS network," Mr Porter concluded.             

The sale is subject to Foreign Investment Review Board approval.                

TARBS was advised by the Corporate Finance Group of Macquarie Bank Limited.     

Austar was advised by Salomon Smith Barney.