AVN.L Regulatory News (AVN)

Avanti Communications Group plc

Contract Win

Avanti Communications Group plc (AIM: AVN), the broadband satellite operator, is pleased to announce that it has sold capacity on its second satellite, HYLAS 2, to Hughes Network Systems ("Hughes") for a term of five to ten years with a total value of up to US$17.4m.

HYLAS 2 will serve Europe, the Middle East and Africa and is due to be launched in 2012.

This transaction is additional to Hughes' purchase of capacity on Avanti's HYLAS 1 satellite in 2009 and extends Hughes' geographic Ka band coverage.

Hughes is the global leader in providing broadband satellite networks, services, and products for large enterprises, service providers, governments, small businesses, and consumers.

Avanti has also purchased equipment from Hughes for use at the HYLAS 2 network control centre, which is in line with capital budgets and is financed under the US EXIM debt facility.

Commenting on the contract, David Williams, Avanti's Chief Executive, said:

"This is our first significant sale of HYLAS 2 capacity and demonstrates the strength of demand we have already seen for the service in the Middle East. Our partnership with Hughes is also expected to generate significant additional business opportunities in the region for Avanti.

"Hughes also owns and operates its own Ka band satellite in the USA and I am therefore proud that the US market leader has made such a strong statement of faith in Avanti's ability to execute its plan to launch and operate high quality broadband satellites."

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For further information please contact:

Avanti Communications Group Plc Tel: +44 (0) 20 7749 1600

David Williams

Cenkos Securities Tel: +44 (0) 20 7397 8900

Julian Morse / Max Hartley

Jefferies International Limited Tel: +44 (0) 20 7029 8000

Rupert Mitchell / Oliver Griffiths

Redleaf Communications Ltd Tel: +44 (0) 20 7566 6700

Emma Kane / Paul Dulieu

Notes to Editors:

About Avanti

¡ Avanti sells satellite broadband services to telecoms companies which use them to supply residential, enterprise and institutional customers.

¡ Avanti's first satellite, called HYLAS 1 will launch in Q3 2010 and will be the first superfast broadband satellite launched in Europe.

¡ Avanti's second satellite called HYLAS 2 is fully funded and will launch in Q2 2012. It will extend Avanti's coverage to Africa and the Middle East.

¡ The market for satellite broadband products in the markets served by Avanti is estimated at more than 100 million households.

¡ Avanti's systems can provide consumer broadband services at speeds of 10Mb per second at competitive prices, and other wholesale services at up to 200Mb.

About Hughes

Hughes Network Systems (HUGHES) is the global leader in providing broadband satellite networks, services, and products for large enterprises, service providers, governments, small businesses, and consumers. HughesNet® encompasses all broadband solutions and managed services from Hughes, bridging the best of satellite and terrestrial technologies. Hughes owns and operates service businesses in the US, Europe, India, and Brazil, delivering continent-wide HughesNet broadband satellite connectivity along with an ever growing range of applications. Major enterprise customers include many Fortune 1,000 companies in virtually every vertical sector. HughesNet consumer/SMB subscribers now number over 500,000, making Hughes the largest provider of high-speed satellite Internet access in the U.S. Hughes operates the Ka-band SPACEWAY® 3 satellite, the first communications satellite with on-board switching and routing and numerous other technology advances, which has the highest traffic carrying capacity of any commercial satellite in operation. Hughes offers the highest satellite speeds and service packages available to the consumer and SMB markets. In the rest of the world, Hughes supplies a growing family of authorized service providers, government organizations, and businesses with advanced broadband systems and terminals. Hughes designed and manufactured products include satellite Network Operations Centers (NOCs) and gateways; two-way broadband satellite routers; mobile satellite handhelds and high-speed IP data terminals; and broadband wireless systems. Hughes has manufactured and shipped more than 2.2 million terminals to customers in over 100 countries, and has consistently maintained a global market share of over 50 percent. Headquartered outside Washington, DC, in Germantown, Maryland, USA, Hughes maintains sales and support offices worldwide. Hughes is a wholly owned subsidiary of Hughes Communications, Inc. (NASDAQ:HUGH).