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 new capacity and services on its first satellite, HYLAS 1, to MPB, a longstanding partner in Eastern Europe on an initial three year contract valued at €443k.

MPB and Avanti collaborated in 2009 with the Hungarian Ministry of Education and Culture to provide broadband to Hungarian schools under a project supported by the EC's Sixth Framework Research Programme. This pilot project has resulted in a commercial deployment for a 550 site network.

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

"I am pleased that our process for filling up HYLAS 1 continues to work well. We now have a strong direct sales force in place. We provide deep technical and marketing support to our 59 customers around Europe who are, as a result, succeeding in winning large and complex project which require them to buy more bandwidth from us. This shows that we are managing the sales process properly, in addition to completing pioneering and large scale transactions, like the $17m HYLAS 2 sale announced last week."

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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.