AVN.L Regulatory News (AVN)

5 February 2015

AVANTI COMMUNICATIONS GROUP PLC

Capital Raising of £60.6m to secure full financing for the HYLAS 4 satellite

Avanti Communications Group plc ("Avanti" or "the Group"), a leading provider of satellite data communications services in Europe, the Middle East and Africa, today announces a Capital Raising subject to shareholder approval by way of the issue of 28,866,720 New Ordinary Shares with new and existing institutional investors at 210p per New Ordinary Share to raise approximately £60.2m (net of expenses).

The Capital Raising, in combination with the Avanti's ability to issue up to a further $125m under its existing bond indenture (on the basis that the additional bonds do not exceed a ratio of 1.25:1 to the Capital Raising), fully funds the cost of the construction and launch of HYLAS 4 and takes the Group through to the point where it is expected to be free cash flow positive. The Directors expect that this will consolidate Avanti's first mover advantage across EMEA, therefore increasing the future cash generation potential of the Group.

The Capital Raising will raise approximately £60.2m (net of expenses) through the issue of the New Ordinary Shares at the Issue Price of 210p, which represents a discount of 5.7 per cent. to the closing middle market price of 222.75p per Existing Ordinary Share on 4 February 2015. The New Ordinary Shares will represent approximately 20.4 per cent. of the Group's issued ordinary share capital immediately following Admission. Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence on AIM at 8.00 a.m. on 24 February 2015.

The Capital Raising is conditional, inter alia, upon the Group obtaining approval from its Shareholders to grant the Directors authority to allot the New Ordinary Shares and to disapply statutory pre-emption rights which would otherwise apply to the allotment of the New Ordinary Shares. The Capital Raising is also conditional upon Admission.

Definitions used in this announcement have the same meaning as those used in the circular which will be posted to Shareholders today and will be available on the Group's website www.avantiplc.com.

For further information please contact:

Avanti: Matthew Springett, +44 (0)20 7749 6709

Tulchan Group: James Macey White, +44 (0)20 7353 4200

Redleaf: Hannah Nicolas, +44 (0)20 7382 4734

Cenkos Securities: Max Hartley (Nomad) / Julian Morse, +44 (0)20 7397 8900

Legal Notice

Cenkos Securities plc ("Cenkos"), which is authorised and regulated in the United Kingdom by the FCA, is acting for the Company as Nominated Adviser and Broker for the purposes of the AIM Rules in connection with the Placing and will not be responsible to anyone other than the Company for providing the protections afforded to customers of Cenkos or for providing advice in relation to the Placing and the other arrangements described in this announcement.

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.

This announcement is not an invitation nor is it intended to be an inducement to engage in investment activity for the purpose of section 21 of FSMA. The New Ordinary Shares are in any event being placed only with (i) persons who have professional experience in matters relating to investments and who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 of the United Kingdom (the "Financial Promotion Order") or (ii) persons who fall within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Financial Promotion Order (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons. Anyone other than a relevant person must not rely on this announcement.

The New Ordinary Shares have not been, and nor will they be, registered under the United States Securities Act of 1933 as amended (the "Securities Act") or qualified for sale under the laws of any state of the United States or under the applicable laws of any of Canada, Australia, the Republic of South Africa or Japan and, subject to certain exceptions, may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act) or to any national or resident of Canada, Australia, the Republic of South Africa or Japan.

Definitions used in this announcement have the same meaning as those used in the circular which will be posted to Shareholders today and will be available on the Group's website www.avantiplc.com.