Will bring together Melbourne IT's domain name and brand protection experience with WebCentral Group's hosting and business solution expertise.

Melbourne IT, a domain registration and WebCentral Group, a web hosting company, today announced that they have entered into a conditional agreement for Melbourne IT to acquire WebCentral Group via a Scheme of Arrangement to be voted on by WebCentral Group Shareholders at a Scheme Meeting, to be held in late August 2006.

Under the agreement of the acquisition, It is proposed that Lucy Turnbull and Sean Howard will join the Melbourne IT Board if the Scheme is approved. While Mr Hnarakis will continue in his role as Chief Executive Officer and Managing Director of the Group.

"Both new directors will bring valuable experience and business acumen, and we look forward to the contribution they can make to the combined business," said Melbourne IT Chairman Rob Stewart.

"The post merger group will bring together Melbourne IT's domain name and brand protection experience with WebCentral Group's hosting and business solution expertise to provide our channel partners and customers with a range of services to optimise their online success," said Theo Hnarakis, CEO and Managing Director of Melbourne IT. "Furthermore, we will be able to deliver efficiencies in service delivery to enhance the success of our customer base."

Both companies expect that the combination of Melbourne IT and WebCentral Group will deliver substantial operating synergies, new and improved services and enhanced customer experience. The acquisition is expected to be significantly EPS accretive for Melbourne IT shareholders in the first full year of combined operations.