AVN.L Regulatory News (AVN)

Avanti Communications Group plc

("Avanti" or the "Company")

Contract win for satellite from European Space Agency ("ESA")

· Avanti wins competition to acquire new satellite and use of 21.5° East spectrum

· Nil upfront cost

· Near term revenue potential in new institutional and commercial customers

Avanti announces that it has signed a contract with ESA to take ownership of a satellite currently in orbit called ARTEMIS. Avanti succeeded in a competition against multiple bidders in which ESA's key decision factors included the promotion of innovation and competition in Europe. Avanti will pay nothing upfront and will assume modest operational costs which it expects will be offset by new revenues from the project.Avanti will take ownership of the ARTEMIS satellite on January 1, 2014. ARTEMIS is a highly sophisticated satellite which offers some unique communications services. It can communicate with other satellites in space as well as users on the ground. It is located at 21.5° East enabling excellent coverage of Europe, Africa and the Middle East to be achieved. It has fuel to allow continued operation to at least the end of 2016 and still have sufficient reserves for safe de-orbiting at end of life.All of the ARTEMIS satellite's Ka-band, S-band, L-band and Optical payloads are fully functional. ARTEMIS gives Avanti the opportunity to offer a range of new Ka-band services such as very high speed data transfer at up to 450 Mbps to commercial and institutional customers. Avanti also has plans to commercially develop the S and L-band payloads and navigation payload.Avanti will use ARTEMIS to support ESA's Autonomous Transfer Vehicle (ATV-5) on its re-supply mission to the International Space Station in 2014. An existing customer of ARTEMIS will continue to utilise the L-band payload to offer mobile satellite communications services.The UK Administration (Ofcom) will also take over responsibility from the French Administration (acting on behalf of ESA) for the management of the ARTEMIS satellite network filings to the ITU at 21.5° East, with Avanti also becoming the designated satellite operator for these satellite network filings. The ARTEMIS satellite network filings cover various frequency bands including parts of Ka-band, Ku-band, S-band and L-band and support a wide range of satellite services.Commenting David Williams said: "We are very pleased to have won the competition to own this satellite. It takes us into some interesting new institutional markets with service from a new orbital position which may be impactful in the debt financing of a replacement satellite in future. "Magali Vaissiere of ESA said: "We are pleased to give Artemis a second life through this agreement with Avanti after an already exceptional series of world first technological achievements and services."

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Notes to Editors:

About Avanti

· Avanti is a carriers' carrier, selling wholesale data telecoms to service providers which use them to create networks for enterprise, carrier, government and consumer users.

· Avanti's network consists of two high throughput satellites in orbit, plus a third in construction, plus the Artemis satellite from January 2014 and an international fibre network connecting data centres in several countries. 

· Avanti serves customers in Europe, Middle East and Africa.