Media Release

21 March 2000

Toll repositions to capture e-business growth

The Toll Group has positioned itself to capture a share of the growing e-commerce market, announcing today a new business division and a strategic investment fund as part of its e-business strategy.

Under the strategy, Toll will establish a new wholly owned business division, Toll Technologies. Toll's Executive Director, Mr Mark Rowsthorn will also head Toll Technologies, recognition of the importance of a strong commercial and logistics focus in the new division.

Toll Technologies will manage a venture fund to make strategic investments in e-commerce businesses aligned with Toll's core operations, and construct a transport and logistics information network or "portal".

Directors have approved up to $50 million in investment funding over the next three years, with $15 million budgeted over the next 12 months.

The recently acquired Removals Australia, a 'virtual logistics business', is typical of the investments Toll will make.

The managing director of Toll Group, Mr Paul Little, said the e-business strategy was a logical extension of Toll's existing business strategy, and would take the company into new types of businesses and sources of revenue as e-commerce develops.

"This strategy will provide a platform to sustain Toll's future earnings growth. We believe success in the digital economy will come from aligning core transport and logistics capabilities with the tools provided by web technology to develop a seamless integrated logistics solution," he said.

Mr Little said the Group will also restructure its operations, incorporating the Specialised Division into the Long Distance Division and establish a single information and freight management system across the Group.

"The e-business strategy builds on the company's existing technology plan, which has been focused on the acquisition and integration of key systems.

"We believe that systems integration and enabling technologies will provide the next level of synergy savings for our businesses," Mr Little said.

Mr Little said implementation of the strategies would proceed in stages.

The establishment of Toll Technologies follows the rollout of TollWorks, Toll's new operational freight management system, and Toll Connect, a suite of web-based customer connectivity products.

Toll Technologies is well advanced in finalising a number of arrangements with technology providers and emerging e-businesses, and expects to announce a number of initiatives over coming months.

Full details of Toll's e-business strategy are in the attachment.

ends.

For further information:

Paul Little,
Managing Director
03 9694 2820 or 0418 335 053

Neil Chatfield, 
Chief Financial Officer 
03 9694 2820 or 0419 566 847

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