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 signed a contract with a Government customer for the sale of an option over specific capacity on the HYLAS 2 satellite, which serves the Middle East, Africa and Europe.

Under the option, which is structured as a Right of First Refusal valid for three years, the customer may purchase a specific amount of capacity on HYLAS 2 which, if fully exercised, will be worth up to £113.4 million to Avanti over a three year period. In return, Avanti will receive an option fee of £280,000. The contract price per MHz is significantly higher than previous sales.

The Agreement also contemplates further collaboration between the two parties in relation to other capacity on the HYLAS fleet.

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

"This is our third sale of capacity on Hylas 2, just three months after we financed and two years before it is launched in 2012. This contract provides further clear demonstration of the exceptional demand for our very scarce resource - at good prices - and our ability to execute our sales strategy."

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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.