31 July 1995

SILICON VALLEY PRESENCE TO HELP QUADRUPLE INFORMATION TECHNOLOGY EXPORTS BY 2000

Intellect, the Austrade 1994 Australian Exporter of the Year, is expanding its global network with the opening of its first office in the US in an effort to position itself to exploit the emerging US Electronic Funds Transfer market.

Senator McMullan said the new Intellect office shows how the Government and industry are working together to position Australia to take advantage of the enormous and expanding market for IT products and services.

"Many Australian IT and telecommunications companies are already succeeding in the US," Senator McMullan said.

"Intellect's initiative will help ensure that many more are well placed to repeat and build on the successes to date."

The Intellect office in San Jose, California, is co-located with Austrade and forms part of a move to accelerate the successful entry of Australian IT firms into the US by combining forces with private Australian companies in Silicon Valley, California - the heart of the US computer industry.

Increasing numbers of Australian software, hardware and telecommunications firms are committing to the US market. Firms such as Intellect Australia, along with a planned Australian American Chamber of Information Technology, will be co-located with Austrade in the Australian business centre. Sponsored by Austrade, the centre provides companies with facilities and specialised Austrade staff support.

Senator McMullan said he saw these co-location arrangements as performing the function of an incubator. By enabling the public and private sectors to work closely together, the Austrade strategy will accelerate the entry into the US market of small Australian enterprises.

"Silicon Valley is the most attractive entry point for Australian IT firms," Senator McMullan said.

"Information Technology is the world's fastest growing industry and the US market accounts for half the world's sales of software.

"Australia aims to quadruple exports of computer hardware and software by the turn of the century to more than $7 billion.

"Much of that growth will come from connecting small and medium sized Australian companies with the potential partners, licensees and customers available in Silicon Valley.

"The Australian industry's expansion in San Jose enables technology-driven Australian companies to deliver diverse and exciting products into the North American technology marketplace.

"Austrade's Silicon Valley office introduces Australian IT and telecommunications companies to the US market, and helps them establish offices, find partners and investors, set up distribution networks, and negotiate technology transfers to and from Australia."

Further information:

Senator McMullan's office: John Flannery, (06) 277 7420, 018 482 887

Intellect (Robertson - Hill & Knowlton): Merren McKimm, (09) 328 5022

Austrade: Peter Lewis, (03) 9284 3297