AVN.L Regulatory News (AVN)

Date: 23rd January 2012

On behalf of: Avanti Communications Group plc ("Avanti" or "the Company")

Embargoed until: 0700hrs

Contract Win

Avanti Communications Group plc, the satellite operator, announces the sale of capacity on HYLAS 1 to QSAT of Ireland ('QSAT') in a seven year deal worth a minimum of £9.3 million and up to £13.6 million.

QSAT will also acquire (subject to completion of administrative processes) certain end user broadband consumers which Avanti has within its legacy business, thus stripping out operating expenses and removing a channel conflict with Avanti's wholesale distribution strategy.

Approximately half of the capacity that QSAT has purchased will be used to service these existing customers and half is additional capacity to support QSAT's planned growth outside of Ireland. QSAT is already the largest satellite broadband service provider in Ireland and has been a customer of Avanti since the HYLAS 1 launch.

David Williams, Avanti Chief Executive said: "QSAT has already had success in establishing a significant sized customer base in Ireland with Avanti and this transaction helps them to bring a winning formula to the UK. We are pleased to see successful customers expanding assertively." 

Niall Quinn, QSAT Chairman said: "At QSAT we are delighted with our association with Avanti. The Avanti HYLAS 1 system offers the best quality, reliability and flexibility in the market and QSAT plans to grow a large International business with Avanti."

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For further information please contact:

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

David Williams / Sean Watherston

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

Nicholas Wells (Nomad) / Julian Morse (Sales)

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

Julian Smith / Thomas Rider

Redleaf Polhill Tel: +44 (0) 20 7566 6700

Emma Kane / Paul Dulieu

Notes to Editors:

About QSAT

The new QSAT brand was launched in July 2011, to accelerate and finance the growth of a business built over several years. It has already been established as the leading Satellite Provider in Ireland, and the company has aggressive growth plans in both Ireland and the UK.

http://www.qsat.ie 

About Avanti

·; Avanti sells satellite data communications services to telecoms companies which use them to supply residential, enterprise and institutional users.

·; Avanti's first satellite called HYLAS 1, launched on November 26th 2010 and is the first superfast broadband satellite launched in Europe.

·; Avanti's second satellite, called HYLAS 2, is on target for launch in Q2 2012. It will extend Avanti's coverage to Africa and the Middle East.