Australian Power And Gas Company Limited (ASX:APK) Achieves 250,000 Net Customers And Continues To Grow Across Eastern Seaboard

Sydney, May 20, 2011 AEST (ABN Newswire) - Australian Power And Gas Company Limited (ASX:APK), an independent energy retailer, today announced it achieved 250,000 net customer accounts, and is on track to meet its full-year forecast amid record sign-ups across the eastern seaboard in recent months.

The company is continuing to acquire customers at a rate of more than 10,000 net billable accounts a month - the fastest growth in the retail energy industry. It reaffirmed its target of 260,000 net accounts in FY11, which it last month revised upwards from 250,000. Australian Power & Gas is also on track to achieve between 400,000 - 415,000 net accounts by the end of FY12.

Australian Power & Gas, which last month placed number 1 on the BRW Fast Starter list for a second year in a row, is replicating its successful Victorian business model as it develops new markets in New South Wales and Queensland. About 30 percent of recent sales were recorded in New South Wales, while about 20 percent came from Queensland.

"We are in a very good position as we head towards the end of the fiscal year; better than we were expecting at the beginning of the year," said CEO James Myatt. "Our proven business model is being successfully deployed in New South Wales and Queensland, where our superior overall offering is already winning customers in significant numbers. I am very pleased with the progress we are making as we continue to achieve size and scale."

The company previously released guidance for FY11 as follows:
- Customer accounts: 260,000
- Revenues: A$200-220 million
- Underlying EBITDA: A$21-23 million
- Underlying NPAT: A$3.5-4.5 million

Guidance for FY12 is as follows:
- Customer accounts: 400,000-415,000
- Revenues: A$380-410 million
- Underlying EBITDA: A$36-40 million
- Underlying NPAT: A$10-12 million

Australian Power & Gas is focused on expanding its national footprint through its expertise in marketing directly to households, and by offering a superior service to customers. The company's direct marketing formula, which includes face-to-face sales, telemarketing and on-line marketing, was pioneered in Victoria, which accounts for about half of new sales.

Contact

James Myatt Australian Power And Gas Company Limited Tel: +61-2-8908-2700 http://www.australianpowerandgas.com.au