Online Stockmarket Trading Update

Hostech  Limited  (HTC) is  pleased  to  announce  the  acquisition  of  the  customers  of  D2K’s Townsville for cash consideration of $90k and the issue of 1,111,112 Hostech shares.  The cash component has been funded from operational cash flow.

The acquisition will significantly enhance the Company’s existing Townsville operation and will have a  positive  impact  on  Hostech’s  earnings  this  financial   year.  The  customer  base  includes some  of  Townsville’s  leading  businesses  and  has  been  developed  by  D2K’s  focus  on  customer service  and  delivering  value. D2K  Townsville  is  the  first  acquisition  by  the  Company  since  the  successful  acquisition  and integration of Anittel, Axxis, Aspirence and Accord during April. The board would like to take this opportunity  to  re affirm  its  commitment  to  growth  through  acquisition  to  compliment  the strong growth currently enjoyed by the business.

Hostech provides under the Anittel brand voice, data, mobility, PBX , IT and hosted IP telephony services to small and medium sized enterprises, with a particular focus on regional Australia. The company is expanding through organic growth and targeted acquisitions to offer the scale, geographic reach and expertise for existing and prospective customers in this underserved market space.

www.hostech.com.au

www.anittel.com.au

http://www.traderdealer.com.au/Fundamentals/HTC

Hostech  Limited  (HTC)  advises  that  it  has  reached  agreement  to purchase the assets of 5Star and OfficeLink+. Final contracts are currently being prepared by the parties. The  addition  of  the  5Star  and  OfficeLink+  customer  bases  and  accompanying  annuity revenue  streams  add  an  exciting   dimension  to  the  business  and  will  enable  HTC  to  offer  its customers a broader range of communications services.

Carlos Perez comes with an impressive track record in telecommunications having founded T3 Communications in January 2002 and then selling the company to Pacific Internet (Australia), in 2005.  Carlos  has  been  successfully  involved  in  eight  telecommunication  start  up  operations  in eight different countries. He has also held senior finance roles at other Australian publicly listed companies. Frank Bradicich is equally well credentialed as a long established sales professional in the industry. 5Star was formed in 2007 and quickly reached break even in late 2008.

Carlos  Perez  comments  that  “Hostech  represents  an  exciting  opportunity  to  deliver  a  greater array of communication products to SMEs through a single company while delivering excellence in customer service.  The combination of a customer focused team and the Board’s commitment to cash accretive acquisitions will deliver sustainable value to shareholders.”

www.5startelecom.com.au

www.officelink.net.au

www.hostech.com.au

Hostech Limited (HTC) advises that it has reached agreement to purchase Plant Communications Pty Ltd which trades as Samsung Communications Australia. Contracts are currently being prepared by the parties. On a consolidated performance basis, the combined businesses will result in Hostech achieving profitability and provide significant growth opportunities. Plant Communications has exclusive rights to distribute Samsung’s business telephony solutions in Australia. PC has a nationwide distribution channel of over 60 specialist and accredited third party dealers selling its leading range of IP PBX solutions.

The owner of Plant Communications, Mr Steve Plant comments, “this is an exciting time for Plant Communications. The acquisition by Hostech will provide the support to further grow Samsung’s offering in the Australian business telephony market. In particular, growth into areas such as IP telephony and Corporate and Government contracts will be assisted by Hostech’s current market offerings and public company structure.”

The acquisition expands Hostech’s existing assets. Sholl Communications is a leading business telephone solutions dealership and OneNetwork is a hosted business telephony solutions provider. OneNetwork will benefit from access to Samsung equipment and the potential to broaden its product offering and distribution capability. Sholl Communications will use its project management and technical expertise to offer its leading capability in areas such as Cabling and Service and Maintenance as well as Enterprise IP Telephony. Hostech is well progressed in developing additional complementary offerings to assist the Samsung Partner Channel, including the establishment of a customer finance program. Such new developments will help to further drive Samsung Communications sales via its Partner Channel whilst enabling Hostech to create new profitable lines of business. The terms of the deal have been adjusted to reflect changes in the PC balance sheet. The consideration of $3.5m is made up of $3m of Hostech shares at $0.025 (2.5 cents) per share (120 million shares) ; $500,000 cash consideration; and $250,000 paid at completion and $250,000 to be paid within 3 months of completion based on cash targets set for Partner Channel.

www.hostech.com.au

Hostech Limited (HTC) advises that it has entered into a terms sheet for a material acquisition. The acquisition is subject to due diligence and commercial conditions precedent. Further details of the company to be acquired will be provided upon successful completion of due diligence, expected approximately mid August 2009. The acquisition will establish another major milestone for Hostech as it emerges as a leading provider of business telephony in Australia. The acquisition is strongly aligned to the Company’s vision of leadership in business telephony and its operations will complement both existing business units, Sholl Communications and OneNetwork. It is anticipated that the new acquisition will deliver in excess of $10m revenue and $2m EBITDA, firmly establishing Hostech as a profitable public entity and positioning it well for future accretive acquisitions during the course of 2009/2010.

Hostech has agreed to pay consideration of $5.750m for the entity, representing approximately 3 times existing EBITDA. The consideration will be $2.750m of cash and $3m in Hostech shares. The Company intends to satisfy a substantial proportion of the cash requirements by leveraging the assets of the acquired entity, thereby reducing cash demands on Hostech.

www.hostech.com.au