AVN.L Regulatory News (AVN)

2 Jul 2008 07:00



Date: 2nd July 2008

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

Embargoed until: 0700hrs

Avanti Communications Group plc

Contract Win and Trading Update

Avanti Communications Group plc (AIM: AVN), the satellite operator, has signed a contract to provide broadband services to SATdsl, a provider of satellite communication solutions in Central & Eastern Europe, which is Avanti's first customer in the Czech Republic. The initial contract value is £100,000 over three years. At the outset bandwidth will be provided on Avanti's leased satellite capacity, then migrated to HYLAS when it launches in 2009.

The contract is for a "Virtual Networks Operator" (VNO) service, which means that Avanti provides a fully managed service, not just bandwidth, and SATdsl manages its own sales, installation, first line customer service and billing. This model is proving to be highly successful for Avanti in building an order book of small customers. It enables small companies to offer complex services at competitive prices without making a high investment in bandwidth or equipment themselves.

In the second half of Avanti's financial year it has recruited distributors in Scotland, England, Ireland, Spain, Italy, Germany and Serbia.

Trading Update

Avanti's financial year ended on 30 June 2008. Financial Results will be published in September and will be in line with market expectations.

David Williams, Chief Executive of Avanti, said;

"We are delighted to be working with SATdsl to win our first business in the Czech Republic, an important market for us.

"In many rural parts of Europe terrestrial broadband is not available. Avanti's VNO model gives us an ability to access the large number of small, hard to reach SME and residential customers in Europe. The European Commission has set aside funding for rural broadband projects in 79 regions across Europe with a total value of €1.8 billion over the next five years. Our strategy of working with small local partners positions us well to access this budget."

Enquiries to:

Notes to Editors:

About Avanti Communications

About SatDSL