The Boomers trailed at every break but it was a poor third quarter, which saw the team score just six points, that cost the Australians dearly as they slumped to a five point loss after defeating Turkey in the previous round.

For the Boomers, Glen Saville top scored with 14 while David Andersen scored 12.

South Australian NBA signing Brad Newley also managed to recover from a recently twisted ankle as well as a stomach bug to take the court and hit 10 points in an encouraging performance ahead of the FIBA Oceania Championships clash with New Zealand later this month, especially as that tournament acts as one of the qualifiers for Beijing 2008.

The Boomers started strongly and were only four points behind the Serbians (25-21) at the first change.

However, both countries seemed to lift their defensive intensity after quarter-time as Australia scored 15 and six points in the second and third quarters respectively to be trailing Serbia by eight at the last change.

However, Australia's forwards improved their work rate after the final break and threatened to snatch the win as the Boomers scored 24 to 21 in the last quarter.

With 45 seconds remaining Perth Wildcat Damien Ryan hit a three-pointer to level the match but on the next play Serbia responded with a three-pointer of its own to draw ahead once more.

When Australia missed a close range shot moments later, the match was effectively lost.

The Boomers were then called for an offensive foul when attempting to rebound the final shot allowing Serbia to extend its winning margin to five points.