Voxson Terminates VK Deal

BRISBANE, Australia -- Mobile telephony engine manufacturer Voxson Ltd announced that further to its notice dated 27 June 2003, it had elected to terminate its contract with VK as a result of VK’s repudiatory conduct.

Chief Executive Andrew Churchill said that while disappointing, Voxson’s contracts, orders and prospects in the China and Korean markets continue to indicate these as the Company’s key market for 2003/2004 and beyond. “This is confirmed by recent announcements by the leading mobile phone manufacturers that Asian manufacturers are beginning to put pressure on their dominant market position," he said.

Voxson has also received a claim from VK for a return of deposits and fees paid under the contracts. Voxson is taking further advice in respect of this claim although present advice received is that there is no substance or merit to the claim.

Further information will be provided when available.

Voxson