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The ongoing hostage situation inside a Lindt chocolate cafe in Sydney has the nation on high alert.
Police have said there is at least one hostage taker.
A spokesperson for Lindt said there were as many as 10 employees and 30 customers in the cafe.
Earlier, people inside were seen holding a black and white flag similar to those used by Islamic State militants against the window.
Police Commissioner Andrew Scipione.
(SOUNDBITE) (English) NEW SOUTH WALES POLICE COMMISSIONER ANDREW SCIPIONE, SAYING:
"Well again it's a flag that we've had people looking at. We're still trying to work out exactly what it stands for. At this stage it's probably best that I don't take that any further."
The hostage takers demands are not yet known.