BBX set to become Australia’s first publicly listed trade exchange
BBX Holdings Limited (“BBX”), one of Australia’s largest trade exchanges, has lodged a Prospectus for an initial public offering of 16 million shares at an offer price of 50 cents per share, which would see BBX become the first publicly listed trade exchange in Australian share market history. The retail offer will commence following the ASIC exposure period, expected to be 24 November 2004.

The barter industry has boomed in recent years, with Australian businesses transacting over $600 million each year through Australia’s trade exchange industry.

Managing Director of BBX, Michael Touma, says the offering provides an opportunity for investors to buy shares in an emerging industry.

“BBX has managed strong growth in membership and trade volume since its incorporation, but there is significant potential for that volume to increase markedly as more businesses seek to include barter as a component of their operation,” said Touma.

“BBX has an excellent track record, with our combined management offering over 70 years of experience in the trade exchange industry, backed by proven success in driving profitable acquisitions, and the opportunity to further expand into the South-East Asian marketplace.

“With continued growth in membership, we would expect that the volume of trading will increase at an even faster rate, which will naturally be reflected in company profits,” said Touma.

BBX reported a net profit after tax of $1.234 million for the 2004 financial year from revenue of $8.071 million, and is forecasting a net profit after tax of $323,000 for the 2005 financial year from revenue of $9.034 million.

The 2005 profit forecast takes into account investments in new resources and infrastructure in the first half of 2005 in readiness for BBX’s expansion program to commence in July 2005.

The Company acquires Cash and Trade dollar revenue from membership fees, as well as fees charged as a percentage of the transactions that take place between members.

BBX members who subscribe for shares payable in Cash will be invited to subscribe for the same or a lesser number of shares using BBX Trade dollars for payment.

The raising will allow BBX to expand the existing branch and franchise network, develop a larger sales force and embark on a concerted sales and marketing program.

The BBX board consists of Colin Henson as Chairman, Adam Cowell and Hector Vieira as Non-executive Directors, Michael Touma as Managing Director and Carolin Touma as Executive Director and Chief Operating Officer.

Chairman of BBX Holdings Limited, Mr Colin Henson, says an investment in BBX represents an opportunity to participate in the expanding Trade Exchange Industry.

“This is an opportunity for shareholders to invest in the future of this unique company, a leading player in the facilitation of barter transactions for business owners throughout Australia and New Zealand,” said Henson.

Barter is much more sophisticated compared to its original form, with a trade exchange using Trade dollars to assign value to the transactions that take place between members of the exchange.

Members earn trade dollar income by selling their goods or services to other members in the exchange and then use the income to purchase other goods and services from within the network, thereby reducing the cash outlay of their business and becoming part of a ‘closed network’.

Since 1993 the Exchange has expanded throughout Australia and New Zealand, partly driven by several successful acquisitions, including Barter Trading Group (BTG), IBEX New Zealand, Tradebanc, and Tradecard.

Today BBX has 4,350 Australian and New Zealand member businesses, with offices and/or franchises situated throughout NSW, Queensland, Victoria, Adelaide and Western Australia, as well as the North and South Islands of New Zealand. The Company, and its franchises, currently employs approximately 70 staff and consultants.

The offer of the securities in BBX Holdings Limited is made in a Prospectus. Anyone wishing to acquire the securities will need to complete the application form that accompanies the Prospectus.

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A full copy of the prospectus, and images, are available on request.
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Releases for BBX by Dennis Rutzou Public Relations.
For further details or to arrange interviews please contact David Lizzio
or Kristen Mackie on (02) 9413 4244.

Details of the Offer:

• Total number of shares on offer 16 million
• Shares on offer in Cash 14 million
• Shares on offer in BBX trade dollars 2 million
• Public Offer price 50 cents
• Shares on issue following the offer 38 million
• Net profit/(loss) after tax (Forecast FY2005) $323, 000