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Empowernet International Ltd Level 9, 368 Sussex Street Sydney NSW 2000 Australia phone: +61 (2) 8267 5000 fax: +61 (2) 8267 5088 www.empowernet.com.au ABN: 61 113 538 533

Dear fellow shareholder,

It is with great enthusiasm that I present to you our first Shareholder Information

Bulletin.

At the company's Annual General Meeting last year, we mentioned that we would

increase the frequency of our shareholder communications.

This is one of several steps we've undertaken in the new year to make sure we

keep you informed and up-to-date on all our activities and progress.

You'll notice on page 11 that we have a full roster of activities and events in store

for 2008.

Stay tuned for more regular communications as well as the launch of our

corporate communications website that will be the repository for all the

information you need at your fingertips as a shareholder of the company.

Onward and upward!

Marc Dussault

P.S.

I can't resist - if you would like to come and see one of our events live, click here for your

2 complimentary tickets to the Unlimited Power event in Sydney, Melbourne, Brisbane,

Perth and Adelaide as my personal gift in recognition of your continued support.

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http://www.empowernet.com.au/

Shareholderinformation bulletin

empowernet International limited

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www.empowernet.com.au

empowernet International – Australia’s premier promoter of large scale

seminars for the past 15 years empowering more than 1,000,000 people

in Asia Pacific with the world’s leading mentors, advisors, strategists

coaches and best-selling authors in personal peak performance, wealth

creation, exponential marketing, sales, management, leadership strategies

and business systemisation who unlock and unleash the unlimited power

and passion that lies within you to produce extra-ordinary results and

luxurious lifestyles making your dreams come true now.

Enhancing LivesFor

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It all really began when we decided to list on the ASX at the end of 2006 concluding with an IPO in June 2007. Going public is always a demanding transition for any company and we were not spared any pain.

I want to take this opportunity to personally acknowledge your investment and support of the company. As a fellow shareholder, I have been just as disappointed as you must be with the performance of the share price since we listed on the ASX.

This being said, since I joined the board as Chairman, I have ensured that the board, executives and employees remain focused on the task at hand – building a profitable company that will produce results that will speak for themselves.

In so doing, we engaged in what Anthony Robbins calls ‘concentration of focus’ on the task at hand, relinquishing attention on the ‘stock promotion’ side of the business. This was a deliberate decision made by the board. For that, we make no apology.

We do, however, apologise for the insufficient shareholder communications that would have alleviated your concerns as we implemented solutions to the challenges we faced.

For example, we implemented a fully customised web-based CRM system that has enabled us to substantially increase the number of programs we deliver with fewer employees while serving more clients with improved client service levels and access to considerably more detailed data for analysis and review. This system will allow us to expand, without constraint, both domestically as well as internationally.

We also developed and deployed new Intellectual Property (IP), launching several new programs. Reflecting our commitment to considerably expand our product and service offering to an increasing number of market segments within more geographical/regional markets.

To be honest with you, the transition hasn’t been easy. The reward, as you will soon see, is reflected in the financial results.

We will complete the transformation over the next year, further enhancing our lead as the industry’s pre-eminent leader.

I want to personally thank you for your vote of confidence as well as your continued understanding, support and patience as we forge ahead to make 2008 an outstanding year.

Onward and upward!

dr Marc dussault Executive Chairman

from the ChairmanMeSSage

...we are committed to the development of new programs, creating new content and expanding into new markets.

There is no question that 2007 was a challenging year for the company.

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2 www.empowernet.com.au

MeSSagefrom the CEO

As we look back on 2007, I would like to begin by acknowledging your continued support throughout a year which has delivered its fair share of challenges. The share price has been a disappointment to us all, and it is the opinion of the Directors that it is not a true reflection of the value of the company.

Whilst the share price is well below what we would all like it to be, the Board and the executive team are pleased with the direction in which the company is heading. We are encouraged by the fact that the year has ended on a positive high, with revenue in November close to double that of October.

During November, we hosted 9 events in Brisbane, Melbourne and Sydney, with nearly 7,500 clients registering to attend overall. Most of these events were for programs developed by Empowernet and launched in recent months. They included Real Estate Mastery, Advanced Real Estate Mastery, Unleash Your Marketing Genius, and the Unlimited Power series. During the month, a new financial trading workshop series, called E-Minis, was also successfully launched. Earlier in the quarter, Anthony Robbins delivered his Unlimited Power event to over 4000 people in Singapore.

As a result of these new programs, we’re delighted to advise that product and seminar sales in November 2007 exceeded $2 million, including prepayments on programs for 2008.

We’re very pleased with such a high level of registration for the new programs. This is a clear vindication of our strategy to develop our own intellectual property. We are particularly delighted with the level of follow through registration by our clients for other programs

hosted by the company. These will help us to expand our client base across mainland Australia and also shortly in New Zealand.

We are starting to realise a return on our considerable investment in developing new seminar and workshop programs, new distribution channels and new markets in line with the strategies detailed in our IPO Prospectus.

The momentum built up in recent months will be sustained in 2008 with 37 events already scheduled for the March quarter. We will continue to increase the number of new events on offer, and therefore allow our clients more opportunities to participate in life-changing programs. Further expansion is also planned for overseas as we move further into Asia, as well as explore the possibilities of launching programs in the US.

Whilst the early signs are promising, there is still a long road ahead. I look forward to keeping you informed of other company initiatives as they are rolled out in the New Year, and thank you for your tremendous support to date.

Michael Burnett Chief Executive Officer / Managing Director

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In today’s competitive society, people in all walks of life are looking for deeper meaning and greater opportunities to advance as well as gain more control and balance in their lives. This is evidenced by the enormous range and demand for books on health and wellbeing, motivation, personal and financial/wealth development that attest to the size of the aspirational and self-improvement market.

Empowernet International Limited is one of Asia Pacific’s most successful promoters of professional and personal development programs. Empowernet has staged and marketed world class events in the fields of management and leadership, sales and marketing, personal development and wealth creation, to over 1,000,000 participants throughout Australia and Asia Pacific since 1982.

Since 1993 Empowernet has worked exclusively with best selling author and the world’s leading success coach, Anthony Robbins, as well as Brian Tracy, providing training programs, workshops and consulting services that dramatically enhance personal and professional outcomes in the areas of sales, motivation, leadership, teamwork, communication and life management skills.

Our specialty is implementing proven programs, getting results, empowering people to take action on what they have learned and producing results far beyond anything ever experienced before.

Until recently, our business model has been centred on the hosting of multi-day, content-intensive seminars. However, as stated in our Prospectus, we have begun shifting from the event-based model to an on-going program and membership-based model to expand the company’s revenue possibilities while substantially increasing value creation for clients.

The Anthony Robbins programs are signature headline events that have, over the past 15 years, proven to be a powerful and differentiated drawcard that has sustained Empowernet at the forefront of the industry. We will leverage that leadership position to expand our own proprietary programs and services.

CoMpanysummary

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Marketdata

InduStry

personal development

The United States is home to many of the world’s leading programs, each having its own particular target market as well as distinct delivery model. However, their appeal is proven worldwide in a multi-billion dollar industry.

According to research firm Marketdata, the market for personal development programs in the US was worth $5.7 billion as of 20001, $8.5 billion in 20032 and by 2005 had grown 24% to $9.59 billion.3

The report forecast 11.4% yearly growth through 2010, to a value of $13.9 billion.4

The research found that the largest growth area in the industry (18% per year6) was in personal coaching, with some 40,000 people in the U.S. working as life or work coaches within a $2.4 billion market.7

According to the Marketdata report, previous negative associations around having a coach have all but evaporated, “It’s becoming a status symbol to have a personal coach”.8 This indicates a potential for a surge in the overall market size as the hesitation to acquire assistance subsides.

The report also points out that “no [coaching] license is required and the field is largely unregulated”9 which certainly creates an opportunity in the market for coaches [and programs] with strong brand name recognition.

Value of Self-Improvement Market Segments: 200510 2005 ($ millions)

Yearly Avg. Growth to 2010 (%)

Infomercials 1,290 9.7

Mail Order Catalogs 70 0.0

Top 12 Motivational Speakers (e.g. Anthony Robbins and Deepak Chopra) 328 12.6

Personal Coaching 2,400 17.5

Holistic Institutes & Training Companies 320 9.8

Books 693 8.3

Audiotapes 354 4.5

Weight Loss Programs * 3,970 10.0

Stress Management Programs 310 6.0

total 9,593 11.4

* Commercial chains & medical programs only, not incl. diet foods, drinks, books or surgeries.

overview

Since the negative associations around having a coach or requesting assistance have all but evaporated, there is the potential for a surge in the overall personal and professional development market.

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One of the fastest growing segments of the industry is spiritual development,11 which can be seen particularly in the phenomenal success of ‘The Secret’ over the last two years.

the biggest issue within the personal development industry, however, is the lack of follow through from people who purchase personal development products. they go to many seminars, buy billions of dollars worth of books and audio programs and yet many never follow through on what they have learned.

A recent survey in the UK found that 55 percent of people buy books for decoration with no intention of actually reading them.12

Try these US statistics on for size:

42 percent of college graduates never read ●●

another book after college.13

80 percent of US families did not buy or read ●●

a book last year.14

70 percent of US adults have not been in a ●●

bookstore in the last five years.15

57 percent of new books are not read to ●●

completion.16

Only 26 percent of people identify and focus on ●●

specific, tangible targets of what they want.17

Less than 15 percent of people write down their ●●

goals.18

Less than 12 percent of people regularly set ●●

a whole series of related daily, weekly and long-term goals, complete with starting times and completion dates.19

Only 11 percent of people put time aside to ●●

visualise the attainment of their goals on a consistent basis.20

Empowernet is ideally positioned with brand name recognition in a fragmented and dispersed marketplace and an established, long-standing relationship with its clients and prospects who are awakening to the acceptance of on-going programs without the prior stigmas and apprehensions of the past. This is expected to expand both the number of clients who are ‘open’ to the possibilities and opportunities we offer as well as increase the per client revenue potential within streams of expertise (business, wealth creation, personal development) as well as across them.

Industry overview (continued)

Empowernet is ideally positioned with brand name recognition in a fragmented and dispersed marketplace and an established, long-standing relationship with its clients and prospects who are awakening to the acceptance of on-going programs without the prior stigmas and apprehensions of the past.

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Business Management TrainingPercentage that

use

Percent increase in the ‘last few

years’

Percentage of respondents

indicating ‘effective’ or ‘very effective’

On the job training 99% 96%

external conferences, workshops and events 95% 11% 84%

Formal education courses 93% 8% 93%

Instructor-lead training delivered off the job 90% 94%

Coaching by line managers 88% 83%

audio tapes, videos and learning resources 81% 71%

Mentoring and buddying schemes 72% 42% 85%

Job rotations, secondment and shadowing 71% 27% 87%

Coaching by external practitioners 64% 51% 92%

E-learning 54% 47%

Business Management training

This is where Empowernet is developing and expanding its service offering – the development of on-going follow-through programs to ensure the mastery and deployment of the strategies and techniques by participants. Making them accountable and holding them to a higher standard of discipline to ensure greater results which will build loyalty, referral and testimonial endorsements.

The business landscape is not all that different.

Business failure statistics in Australia do not paint a pretty picture. Of the 1,868,969 businesses operating in June 2003, 35% had gone out of business by June 2006.21

Of the 325,935 new business startups during 2003-04, 41.7% had closed down by June 2006.21

Of these businesses, the most at risk are those whose turnover is between $50,000 and $200,000, with 48.6% of these businesses who began

operations in 2003/04 going out of business by June 2006.22 In each financial year from June 2003 to June 2006, the largest percentage of companies to go out of business were in this range, followed closely by those in the $200,000 to less than $2 Million range.23

These SMEs with the most at risk and with the most to lose are Empowernet’s target market clientele. That is one of the reasons the initial acceptance of Empowernet’s new on-going support and development programs has been so positive.

Worldwide, revenues from coaching were US$1.5 billion in 2007, with Australia’s share of this approximately A$118 million, according to a survey carried out for the International Coaching Federation by PricewaterhouseCoopers.24

The Australian Institute of Management confirms that over 70% of its members hire coaches.25 Businesses are increasingly turning to coaching [on-going support and development] as a preferred method of skills acquisition.

Industry overview (continued)

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Anthony Robbins

Unleash the Power Within

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www.empowernet.com.au8

unleash the power Within

Unleash The Power Within is Anthony Robbins’ cornerstone live weekend program, where clients are taught strategies for discovering what it is they want out of life as well as the tools to break through any barriers that may be holding them back from achieving them. Participants are taught how to increase physical energy and mental clarity.

Wealth Mastery

Wealth Mastery teaches wealth creation strategies to both novice and experienced investors. Participants are shown how they can safeguard their investments, gain a global vision of investment opportunities as well as consider alternative strategies for creating and protecting wealth.

date With destiny

Date With Destiny is an intense and intimate five and a half day program that provides live access to Anthony Robbins. Participants build on the progress and changes that they made at Unleash The Power Within as well as update, upgrade and enhance their knowledge of Anthony Robbins’ Neuro Associative Conditioning technologies to enable them to find balance, fulfillment and achievement in their lives.

real estate Mastery

The Empowernet Real Estate Mastery Program was designed to allow ‘Mums and Dads’ as well as sophisticated investors, the path to wealth creation using proven and tested strategies for acquiring real estate properties safely and strategically.

anthony roBBInSprograms

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Business mastery platinum program

The Business Mastery Platinum Program – the Unique 12-Month MasterMind Experience that will Unleash Exponential Growth and Profitability in your Business or Professional Practice, by Leveraging the World’s Best Exponential Marketing, Sales, Lead Generation Systemisation and Peak Performance Strategies.

Internet mastery platinum program overview

The Internet Mastery Platinum Program – The Unique MasterMind Experience that holds you by the hand for 12 months providing you with EVERYTHING you need to know to Unleash Exponential Growth and Profitability in your Internet Business or Online Sales Channel, by Mastering Cutting-Edge Traffic Lead Generation, Conversion and Client Management Strategies.

empowernet’s philanthropic commitment to enhancing lives.

Empowernet is leveraging its reach to an empowered, empassioned and motivated client base, making the world a better place, one person, one donation at a time.

Empowernet is committed to helping the less fortunate in society by raising funds at events. Funds that are donated to a variety of charitable causes.

At the 2007 editions of Unleash the Power Within, Date With Destiny and Wealth Mastery events $106,000, $295,000 and $312,000 was raised respectively for an annual total (including other events) of just under 1 Million dollars.

Funds are mainly distributed through the anthony robbins Foundation.

I have not been to bed before midnight since returning from Anthony Robbins. I have never been so motivated to improve my life, happiness, family and business. I haven’t stopped smiling since Unleash the Power Within – my son has told me that I look much happier. I have already lost 2 kilograms just by breathing, eating healthier and drinking water. Thank you for your insight, advice and clear direction that you have exposed me to. I am indebted to you for life and we have only just begun our journey.

gavin, angela and Finn

Empowernet’s commitment to enhancing lives

eMpoWernetprograms

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On the operational front, 2007 has been an exciting and action-packed transitional year for the company. As we stated in our Prospectus, we are committed to the development of new programs, new content and new markets.

BuSIneSS ModelThe Empowernet

The inaugural launch of Real Estate Mastery was to sell out audiences in Brisbane, Melbourne and Sydney. Over 600 people participated in these comprehensive 2-day programs that covered a vast array of strategic topics providing invaluable insight into some of Australia’s most advanced property investment and personal income strategies.

2007 also saw the inauguration of the Business Mastery Platinum Program on the back of the most successful Ultimate Business Building Bootcamp event in August. Building on the sold-out success of its predecessor, the Exponential Marketing MasterMind VIP Program, the Business Mastery Platinum Program was deployed one year ahead of its original launch date and has so far proven to be the most intense results-guaranteed program in Australia. The excitement within the Business Mastery Platinum Program spawned

unrelenting demand for its Internet counterpart – the Internet Mastery Platinum Program.

Responding to our clients’ demand, we decided to launch the Internet Mastery Platinum Program 6 months ahead of schedule, at Stephen Pierce’s sold-out Unleash Your Marketing Genius event in November 2007.

The Business and Internet Mastery Platinum Programs now boast more than 50 companies enrolled in a 12-month program GUARANTEED to produce results, confirming that our new business model is working.

In 2008, we will continue to create greater value for a larger number of clients with an on-going, multi-tiered membership subscription model that will substantially increase our recurring revenue and profit in a bid to improve and build on the momentum created in 2007.

The Business and Internet Mastery Platinum Programs now boast more than 50 companies enrolled in a 12-month program GUARANTEED to produce results, confirming that our new business model is working.

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groWth opportunities

upcoming events that will fuel sales growth in 2008These programs included the Real Estate Mastery, Advanced Real Estate Mastery, Unleash Your Marketing Genius, and the Unlimited Power series.

The momentum built up in recent months will be sustained in 2008 with 37 events already scheduled for the March quarter.

Product and seminar sales in November 2007 exceeded $2 million, including prepayments on programs for 2008. During November, Empowernet hosted 9 events in Brisbane, Melbourne and Sydney for which nearly 7,500 clients registered to attend. Most of these events were for programs developed by the company and launched in recent months.

March Quarter 2008 eventsProfessional Speakers Bootcamp Thursday 26 – Sunday 29th February

Exponential Killer Copywriting Workshop Thursday 13 March

Stephen Pierce Unleash Your Marketing Genius Friday 14 – Sunday 16 March

Unlimited PowerSydney Saturday 23 – Sunday 24 February

Brisbane Tuesday 26 – Wednesday 27 February

Melbourne Saturday 1 – Sunday 2 March

Adelaide Tuesday 4 – Wednesday 5 March

Brisbane Saturday 8 – Sunday 9 March

Real Estate Mastery and E-mini WorkshopsPerth Saturday 2 February & Sunday 3 February

Brisbane Saturday 9 February & Sunday 10 February

Sydney Saturday 16 February & Sunday 17 February

Melbourne Saturday 23 February & Sunday 24 February

Adelaide Saturday 1 March & Sunday 2 March

Internet Mastery Platinum Program WorkshopsSydney Wednesday 23 January

Thursday 21 February

Friday 28 March

Brisbane Friday 1 February

Friday 15 February

Wednesday 19 March

Melbourne Wednesday 30 January

Tuesday 19 February

Thursday 27 March

Business Mastery Platinum Program WorkshopsSydney Wednesday 23 January

Thursday 21 February

Friday 28 March

Brisbane Friday 1 February

Friday 15 February

Wednesday 19 March

Melbourne Wednesday 30 January

Tuesday 19 February

Thursday 27 March

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1 MarketData Research, “The Market for Self Improvement Products & Services”, October 2001, 4th Edition, http://www.mkt-data-ent.com/sisample.htm

2 Marketdata, “The Market For Self-Improvement Products & Services”, www.mkt-data-ent.com/pressreleases/Self-Improvement%20Market %20PR%2002-20-2004.doc

3 LaRosa, J., “Personal coaching & infomercials do best”, http://www.prwebdirect.com/releases/2006/9/prweb440011.htm

4 LaRosa, J., “Personal coaching & infomercials do best”, http://www.prwebdirect.com/releases/2006/9/prweb440011.htm

6 LaRosa, J., “Personal coaching & infomercials do best”, http://www.prwebdirect.com/releases/2006/9/prweb440011.htm7 LaRosa, J., “Personal coaching & infomercials do best”, http://www.prwebdirect.com/releases/2006/9/prweb440011.htm8 LaRosa, J., “Personal coaching & infomercials do best”, http://www.prwebdirect.com/releases/2006/9/prweb440011.htm9 LaRosa, J., “Personal coaching & infomercials do best”, http://www.prwebdirect.com/releases/2006/9/prweb440011.htm10 LaRosa, J., “Personal coaching & infomercials do best”, http://www.prwebdirect.com/releases/2006/9/prweb440011.htm11 “Self Improvement Books”, http://www.bestdietforme.com/

SelfImprovement/Books.htm12 Lewis, P. and Ezard, J., “The great unread: DBC Pierre, Harry Potter...

oh yes, and David Blunkett”, The Guardian, 12 March 2007, http://books.guardian.co.uk/news/articles/0,,2031646,00.html

13 Jenkins, J., “Who is Reading Books?”, Jenkins Group, www.JenkinsGroupInc.com14 Jenkins, J., “Who is Reading Books?”, Jenkins Group,

www.JenkinsGroupInc.com15 Jenkins, J., “Who is Reading Books?”, Jenkins Group, www.JenkinsGroupInc.com16 Jenkins, J., “Who is Reading Books?”, Jenkins Group, www.JenkinsGroupInc.com

17 Haas, E.R., “Important New Study Reveals Where Americans Fail at Setting, Achieving New Year’s Goals. The Reasons Might Surprise You.”, www.ThinkTQ.com, http://www.churchsolutionsmag.com/hotnews/5ch1115654.html



20 Australian Bureau of Statistics, “Counts of Australian Businesses, Including Entries and Exits”, 26 February 2007, http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/8165.0Jun%202003%20to%20Jun%202006?OpenDocument




24 “The Business Coach at Sydney Business School”, University of Wollongong Newsletter, 11 October 2007, www.uow.edu.au/content/groups/public/@web/@gsb/documents/doc/uow037976.pdf

25 “The Business Coach at Sydney Business School”, University of Wollongong Newsletter, 11 October 2007, www.uow.edu.au/content/groups/public/@web/@gsb/documents/doc

Industry overview references

disclaimerThis Shareholder Information Bulletin contains information in respect of Empowernet International Limited (‘the Business’). The sole purpose of this Shareholder Information Bulletin is to provide an update for shareholders and stakeholders on the activities of the Business.

This Shareholder Information Bulletin is not a disclosure document as defined in the Corporations Act 2001; does not purport to contain all information in respect of the Business that would be required by Part 6D.2 of the Corporations Act 2001 if it were a disclosure document; will not be lodged with the Australian Securities and Investments Commission; is not a recommendation to purchase or an offer to sell shares in the Business; it is not an invitation to any recipient or any other person to purchase shares in the Business; and does not purport to contain all information that a potential acquirer might desire in respect of the Business. This Shareholder Information Bulletin has been prepared in good faith, acting reasonably, based on estimates and projections prepared by management of the Business that involves significant elements of subjective judgment and analysis which, although based on reasonable grounds and believed to be accurate and reliable, may not ultimately occur.

The Business, the Directors and their respective agents and advisors make no warranty, express or implied, as to the accuracy, reliability or completeness of; disclaim all liability, direct or indirect for any loss or damage suffered by any recipient or other persons arising out of, or in connection with, any use or reliance on; and are under no obligation to correct, update or revise, this Shareholder Information Bulletin (including any estimates or projections) or any information or material otherwise provided to any recipient or other person in connection with any investigation of the Business. The recipient is not entitled to rely on any representations or warranties made to it by the Business, the Directors or their respective agents or advisors.

The recipient should make its own independent investigations and analysis of the Business and its own assessment of all information and material provided in respect of the Business and satisfy themselves as to the accuracy, reliability and completeness of such information and material. This Shareholder Information Bulletin is not an indication of the state of affairs of the Business nor does it constitute an indication that there has been no change in the Business or affairs of the Business since the date of this Shareholder Information Bulletin, or since any other date at which any information contained in it is expressed to be stated.F

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empowernet International limited Level 9, 368 Sussex Street Sydney NSW 2000

T +61 2 8267 5000 F +61 2 8267 5088 E [email protected] www.empowernet.com.au

EMP_shareholderbulletin_0208

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