WorldAudio shareholders vote for capital raising

WorldAudio shareholders have voted in favour of resolutions to support a $7 million capital raising, which wil be used in part to accelerate the rollout of the Company’s National AM radio network – RADIO 2.

At the special general meeting held last week, shareholders passed six resolutions relating to the capital raising, which comprises:

* the issue of up to 35,000 convertible notes to Nighcam Pty Limited at $100 each, to raise up to $3.5
million (the convertible notes will convert at $0.12 per share on or before 1 June 2005);

* the issue of up to 35 million ordinary shares at $0.10 each, to raise up to $3.5 million;

* the acquisition of a relevant interest of up to 21.75% of the voting shares of WorldAudio by
Nigham at the time that the convertible notes issued to Nigham are converted into ordinary
shares.

“We would like to thank our shareholders for their support of the capital raising, which will underpin
the next phase in the company’s growth strategy,”
said Chairman Peter Solomon. “This is a huge vote of confidence in the concept and future of the company”.

The capital raised will be used to fund network rollout costs of up to a further 31 commercial
broadcasting sites Australia wide; the exercise of options to take ownership over broadcasting
licences; planning for digital test broadcasting; and for working capital requirements.

In addition to its Radio 2 station in Western Sydney, WorldAudio is currently test
broadcasting in Melbourne, with plans to begin full transmissions in Melbourne “at the
earliest opportunity.” Test broadcasting
will begin in Brisbane “in the near future,” with planned rollout in other capital cities and regional
centres before the end of the calendar year.

Chief Executive Officer Andrew
Peter Thompson said: “The rollout of our AM stations will give WorldAudio a national radio network with a potential reach
of over 10 million in population [all ages], and will place WorldAudio to take full advantage of the
future industry conversion to digital broadcast technology. This will position the company alongside,
if not in front of, the traditional national radio networks.

The directors remain confident that digital radio is the future of broadcasting in Australia and
WorldAudio is committed to playing a leading role in the transition to digital technology.”