Several people have run from a cafe in Sydney where a gunman is holding staff and customers hostage.
Five people managed to run from the front and side of the building.
A black Islamic flag has been held up to the window of the cafe.
Australian Prime Minister Tony Abbott has called the ongoing incident 'profoundly shocking'.
Police negotiators have been in contact with the hostage taker and say they know his identity.
New South Wales Premier Mike Baird says residents should go about their business as usual.
IN: "For everyone….
OUT: ...through it."
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New South Wales Police Commissioner Andrew Scipione has been praising the calm response of Sydney's residents.
IN: "You acted….
OUT: ...priority."
DUR: 26 seconds