POLICE Commissioner Andrew Scipione tonight spoke directly to hostages at the centre of the ongoing siege in Martin Place and told them police were doing everything to get them out safely.

At a press conference with NSW Premier Mike Baird, the Police Commissioner acknowledged the hostages had access to various forms of media and addressed them directly.

“Rest assured we are doing all we can to set you free,” he said.

media_camera A staff member goes to the front door to turn off the lights in the Lindt cafe where hostages are being held at gunpoint in Martin Place. Picture: Craig Greenhill

Commissioner Scipione said highly skilled negotiators had been communicating with the gunman, but admitted the process could be an extended one.

“We have the very best negotiators in the world on the job right now so at this stage, rather than second guess or give them anything that might cause some grief to those people that are caught in there we’re not in a position to talk about that anymore,” he said.

He said he understood that no hostages inside the cafe had been hurt in the 11 hours since the siege began.

media_camera One of the hostages falls into the arms of a police officer after escaping the Lindt Cafe in Martin Place. Picture: Chris McKeen

media_camera The emotion and relief was evident as the hostage met police. Picture: AP Photo/Rob Griffith

Mr Scipione called for calm in the wake of threats made on social media of reprisal attacks on Muslim buildings.

“At this stage we want people to settle down. We want people to stay calm,” Mr Scipione said.

“Reprisal attacks are something that should not happen.”

He said that the Sydney Opera House had been “cleared and deemed safe” after earlier being evacuated amid a scare that it may be another terrorist target.

He would not discuss the motivation of the gunman or how many hostages remained in the Lindt Cafe.

Mr Baird said that parts of Martin Place would remain shut down tomorrow and urged workers to work from home if their offices were inside the exclusion zone.

“I’m proud with how we have responded as a city, a state, a nation,” Mr Baird said.

He asked people to pray for the hostages and their families.

media_camera A second Lindt worker escapes from the cafe. Picture: Chris McKeen

media_camera Two of the three hostages that escaped from the Lindt Cafe in Martin Place. An undisclosed number of hostages remain inside. Picture: Don Arnold/Getty Images

The gunman, holed up in Lindt Cafe in Martin Place with an unknown number of hostages, has ordered those hostages to issue his demands.

The Daily Telegraph, who were among a host of media outlets contacted, has chosen not to publish the details at the request of police.

Five hostages have now escaped from the Lindt cafe in Martin Place where a gunman continues to hold a number of hostages.

Two young women, one in a Lindt apron, are the latest to escape just before 5pm, an hour and a half after three men, including a barista escaped the building.

The women fell sobbing into the arms of waiting police.

Earlier, the three men ran south along Phillip Street. They are believed to have escaped rather than be released.

media_camera It is believed the hostages escaped and were not released by the gunman. Picture: Don Arnold/Getty Images

media_camera The first hostage to escape. Picture: Mark Metcalfe/Getty Images

media_camera Heavily armed police in Sydney's Martin Place. Picture: Chris McKeen

media_camera The suspected gunman with a hostage in the Martin Place siege. Picture: Ross Schultz

One of the hostages appeared to be aged in his 60s in a blue sportscoat while another younger customer was in a white shirt. A third man wearing a brown barista uniform stumbled as he fled the building.

One of the five hostages was taken to St Vincent’s hospital emergency department but has has left the hospital inside an unmarked police car with a jacket over his head.

A squad of heavily armed police officers remain standing guard at a fire door at the rear of the Lindt cafe where the hostages emerged.

Police hope to use the fire escape to whisk other hostages to freedom.

The siege is being treated by police as a terrorist situation but the motivation of the gunamn is yet to be determined.

media_camera An unknown woman cries close to the scene of the Martin Place siege. Picture Cameron Richardson.

media_camera Prime Minister Tony Abbott holding a press conference at Parliament House in Canberra. Picture: Kym Smith

Prime Minister Tony Abbott has urged Australian not to be swayed by the ongoing siege in Martin Place and go about their day as normal.

He said it’s not yet “know whether this is politically motivated” but admitted it looks to be.

He encouraged Australians to report any suspicious behaviour — but to still go about their days.

“I would urge all Australians to go about their business as usual,” he said.

“This is a very disturbing incident.”

Lindt have released a statement thanking the public for support.

“We would like to thank everyone for their thoughts and kind support over the current situation at the Lindt Chocolate Café at Martin Place,” it read on Facebook.

“We are deeply concerned over this serious incident and our thoughts and prayers are with the staff and customers involved and all their friends and families. The matter is being dealt with by the authorities and we are waiting for any updates from them.”

An armed man who was captured by Seven News cameras earlier appeared to be wearing a black headband with Arabic writing on it and a backpack.

Witnesses described seeing cafe staff and shoppers pinned up against the building’s front window, with their arms raised and a black and white Islamic flag in the window.

media_camera A bird’s-eye view of the location of the scene of the Martin Place siege.

media_camera Martin Place siege location.

media_camera People gather in Martin Place to try and see the siege at Lindt cafe in Martin Place. Picture Cameron Richardson.

Prime Minister Tony Abbott has spoken to the NSW Premier and the National Security Committee of Cabinet has also convened for briefings on the siege.

A statement from the Prime Minister’s office said the ongoing siege was a ‘deeply concerning incident’.

“This is obviously a deeply concerning incident but all Australians should be reassured that our law enforcement and security agencies are well trained and equipped and are responding in a thorough and professional manner,” the statement read.

A squad of heavily armed specialist police officers have gathered on the corner of Elizabeth Street and Martin Place.

media_camera Hundreds of police are in the vicinity. Picture: Mark Metcalfe/Getty Images media_camera Police divers near the Sydney Opera House which is also in lock down. Picture: Craig Greenhill

Courts and shops in the Sydney CBD have been shut due to the siege.

The Supreme Court buildings in Queens Square and King Street, metres from the police operation, are in lock down.

Sheriffs at the Downing Centre District Court on Liverpool Street has been evacuated.

The Central Local Court on Liverpool Street has also shut its gates and all court proceedings have stopped.

All schools were today asked to assume “white level” lockout, which means no school group is to leave school grounds.

media_camera Police outside the Lindt Chocolat cafe in Martin Place. Picture : Richard Dobson

media_camera Thousands of evacuees gathered in Hyde Park. Picture: Julia Carlisle/AAP

media_camera One of the hostages inside holds their hands in the air. Picture: Toby Zerna

There were dramatic scenes earlier on Castlereagh Street among the anxious crowd waiting for a resolution to the siege.

A crazed man began chanting “there’s no such thing as a moderate Muslim” and other racist slurs punctuated by foul language.

Wearing a pink headscarf and midway through an interview with The Daily Telegraph, Nadia El-Mouelhy, chief executive of the Halal Certification Authority of Australia, fired back at the man: “I’m a moderate Muslim.”

A crowd numbering in the hundreds formed a circle around the man as his tirade continued.

Ms El-Mouelhy was tapped on the shoulder by a Sydney businessman who smiled at her and said “don’t worry about him darling.”

Smiling, she marched defiantly towards the racist and repeated “I’m a moderate Muslim and I’m disgusted by this” as police moved in to arrest him.

How events have unfolded 9.45am - A number of hostages held inside a cafe in Sydney’s Martin Place with an Islamic flag pressed up against a window. Hostages seen with their arms in the air inside the Lindt Chocolat Cafe and the CBD goes into lockdown. Workers in nearby buildings ordered to evacuate the area. 10.14am - Police establish a 150m exclusion zone around the cafe with specialist police outside the shop. Martin Place train station shut down. 10.45am - Sydney Opera House evacuated following reports of a suspicious package. 10.47am - Transport NSW advises motorists and public transport commuters to stay away from the CBD. 10.55am - The flag being displayed appears to be the Shahada flag which has been adopted by extremist groups such as the al-Qaeda-linked al-Nusra Front. 11.00am - Reports of up to 13 hostages inside the cafe. 11.15am - US Consulate sends emergency message to US citizens in Australia. 11.20am - Flights diverting around Sydney CBD but operating on schedule. 11.25 - The National Security Committee of Cabinet convenes for briefings. 11.30am - Prime Minister Tony Abbott issues a statement saying it is a “deeply concerning incident” but reassures the public that security agencies are well trained to handle it. 11.35am - Lindt Australia CEO Steve Loane estimates there are up to 50 people being held. 11.35am - A number of Australian Muslim leaders offer to help in any way they can. 11.40am - Channel Seven air footage of alleged armed offender. He is middle aged with a salt and pepper beard, wearing a headband with Islamic writing. 11.51am - NSW Police try to make contact with the people inside the cafe. They advise workers who are trapped in buildings inside the police cordon to stay away from windows. 12.00pm - Macquarie Radio reports an alleged gunman has told negotiators he has “devices all over the city” and wants to “speak with the prime minister live on radio”. - Several sites around the CBD evacuated, including Channel Seven building, Opera House, NSW parliamentary executive offices, State Library and NSW Supreme Court’s criminal courts. 12.02pm - All public schools asked to assume “white level” lockout, which means no school group is to leave the school grounds. 12.10pm - A man is arrested 200m from the siege with what appears to be a handgun. The arrest is not linked to the siege. 12.55pm - Prime Minister Tony Abbott says there are ‘some indications’ it is politically motivated but urges Australians to go about their business as usual. Opposition Leader Bill Shorten offers Tony Abbott the Opposition’s full support in dealing with the incident 12.57pm - US President Barack Obama is briefed on the siege by Homeland Security and Counterterrorism chief Lisa Monaco. 1.05pm - Canadian Prime Minister Stephen Harper says his country’s “thoughts and prayers are with our Australian friends”. 1.30pm - NSW Police Commissioner Andrew Scipione says they had moved to a “footing” similar to dealing with a terrorist attack. - New Zealand Prime Minister John Key sends a message of support. 1.32pm - Lindt stores elsewhere around the country shut for the day. 1.50pm - Queensland’s police commissioner Ian Stewart says he has information an improvised explosive device may be involved. 1.55pm - NSW Premier Mike Baird says Sydney is being tested today, but ‘we will remain a democratic society’ 2.17pm - The hostage drama causes chaos across the CBD, with roads closed and public transport services disrupted. Indian Prime Minister Narendra Modi labels the events as “inhuman & deeply unfortunate. I pray for everyone’s safety” 2.30pm - Major banks including CBA, Westpac, NBA and ANZ close several CBD branches but the Reserve Bank of Australia, near the Lindt cafe, is operating with back-up procedures in place. Several retailers around Martin Place are also forced to close. 2.45pm - Lindt Chocolat Cafe Australia thank the public for their support via Facebook, saying they are “deeply concerned over this serious incident” 2.57pm - The Grand Mufti of Australia puts out a statement condemning the incident, saying “such actions are denounced in part and in whole by Islam.” 3.14pm - Opposition Leader Bill Shorten calls for the nation to be united, saying Australians are shocked, but they won’t be shaken. 3.37pm - Three male hostages run out of the cafe. 3.50pm - NSW Police Deputy Commissioner Catherine Burn confirms negotiators have spoken with a gunman. She says there are fewer than 30 hostages and none have been harmed at this stage. Police refuse to label the attacks as “terrorism” or speculate on how many offenders are inside the cafe. Police ask people in buildings facing Martin Place to remain there, while everyone else can go home as the working day ends. 4.17pm - The National Security Committee of Cabinet meets. AFP chief Andrew Colvin and Justice Minister Michael Keenan are en route back from PNG to Australia 5.00pm - Two female Lindt workers leave the cafe

Seven Network staff were earlier sheltering inside the media company’s Martin Place headquarters as a hostage drama unfolded.

The Morning Show co-host Kylie Gillies said police had locked down the Seven building at 52 Martin Place in Sydney’s CBD, right across from the Lindt Chocolat Cafe.

At the time she was sheltering with about 40 other Seven staff members.

“It’s quite tense,” Ms Gillies said.

“Our first thoughts, of course, are with the customers and staff at Lindt, and their families.

“We can see them and we can see the fear in their eyes.” She said Martin Place was now cordoned off and “eerily empty” of pedestrians.

“There’s a heavy police presence,” she said.

media_camera Picture : Richard Dobson

media_camera Picture : Richard Dobson

Police have cordoned off a huge chunk of the CBD as worried crowds gather at the perimeter.

Castlereagh Street is swarming with hundreds of shocked onlookers and media personnel.

The area was shut down and scores of police are surrounding the building after the alarm was raised about 9.45am.

The Opera House was earlier abandoned following the discovery of a suspicious package.

Police are investigating however it is not known if it is linked to the siege at Martin Place.

Police have closed off Martin Place between Macquarie and Elizabeth Streets, and Martin Place train station has been cleared. Police have cordoned off the area to about 150m and a special police operations unit is outside the building.

media_camera Hostages hold up an Islamic flag at Lindt Cafe in Sydney's Martin Place.

media_camera Hostage in the Lindt Cafe in Sydney's Maritin Place.

There are various road closures in place and motorists are advised to stay away from the area.

In September Federal Police made a host of arrests after allegedly uncovering a plot to abduct a random Australian and execute them by beheading in a public place, possibly Martin Place and post the act on social media.

Just before 10am it is believed an attempted robbery was taking place when the offender then took a number of hostages.

Performances at Sydney’s Opera House have been cancelled due to the dramatic siege.

The Australian Ballet’s The Nutcracker, The Sydney Theatre Company’s Switzerland and Damon Albarn’s show in the Concert Hall won’t go ahead.

The Opera House has also decided to cancel the children’s performances scheduled for Tuesday. Those performances are The Tiger Who Came to Tea and The Little Drummer Boy.