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.
ABC reporter John Donegan is at the scene and says the situation has brought parts of Sydney to a standstill.
IN: "There are….
OUT: ...in gardens."
DUR: 28 seconds
ALT:
ABC reporter John Donegan is at the scene and says the situation has brought parts of Sydney to a standstill.
IN: "The number….
OUT: ...deathly quiet."
DUR: 24 seconds
ALT:
Channel 4 News journalist Krishnan Guru-Murthy is in Sydney and says authorities hope to resolve the situation without firing shots.
IN: "They are….
OUT: ...outcome."
DUR: 25 seconds