Under the terms of the merger Allied Technologies will acquire all issued shares in Longreach through offering one new Allied Technology share for every 2.5 Longreach shares held by Longreach's shareholders.

Based on a monthly weighted average share price of June 6, Allied Technology shares rated at 20 Australian cents (US$0.14) with Longreach at 6.31 cents, and on completion of the merger, current Longreach shareholders will hold an interest of about 57 percent of the merged company, which is still waiting Court approval and the approval of Longreach shareholders.

The merger is expected to be completed by September, 2006.

Michael Addison will retain the role of managing director of the merged company, while Longreach managing director Ken Carr will join the Allied Technologies board as executive director.