AVN.L Regulatory News (AVN)

Date: 23rd March 2012

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

Embargoed until: 0700hrs

Avanti Communications Group plc

Avanti signs contract with Ethnet Limited

Avanti Communications Group plc, the satellite operator, announces the sale of capacity on HYLAS 1 to satellite broadband provider, Ethnet Limited ("Ethnet") in a three year deal worth a minimum of £660k.

The capacity will be used to deliver satellite connectivity for a variety of applications in use by Ethnet's fast growing UK enterprise and consumer customer base. Ethnet specialises in supplying communications services and equipment to remote locations as well as short-term hire for events, exhibitions, road shows and film production companies. With the rollout of its new motorized self acquiring solution, the SAMS-M1, it is looking to establish itself at the forefront of motorized satellite solutions.

David Williams, CEO of Avanti said: "We are delighted to welcome Ethnet to Avanti's growing family of expert satellite broadband partners and look forward to assisting them in achieving their growth plans and ambitions to become one of the UK's premier suppliers of satellite broadband services to the domestic and enterprise market."

Barry Lieberman, Ethnet Managing Director said: "We have identified a growing opportunity for the delivery of broadband internet connectivity by satellite and look forward to enhancing our suite of products through the use of Avanti's HYLAS 1 satellite."

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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

Neil Collingridge / John Fishley

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

Emma Kane / Paul Dulieu

About Ethnet

Established in 2001, Ethnet is a satellite broadband service provider, specialising in supplying communications to a variety of users, including domestic, enterprise, commercial, outdoor events and film locations.

Ethnet supplies a range of services to its customers via satellite, including, broadband, VoIP, EPOS, CCTV, support and transportable communications, backed up by its own engineering facility.

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

·; Avanti's third satellite HYLAS 3, to be launched in partnership with ESA in 2015, will provide further capacity in the EMEA region

·; 80% of Avanti's fleet capacity will address the Emerging telecommunications markets of Africa and the Middle East