AVN.L Regulatory News (AVN)

Date: 18 April 2011

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

Embargoed until: 0700hrs

Avanti Communications Group plc

§ Litigation Award and Trading Update

Avanti Communications Group plc (LSE: AVN), the satellite operator announces a Litigation Award and makes a Trading Update.

Litigation Award

Avanti Communications Group plc (LSE: AVN), the satellite operator, announces that it has been successful in its claim against Space Exploration Technologies Corporation ruled upon under  binding arbitration by the American Arbitration Association in New York. Avanti was awarded the full amount of refund it claimed under the contract, being $7,566,013 and was also awarded interest from the date of the claim.

Trading Update

Full Commercial Service on HYLAS 1 successfully commenced on April 4th. The process of migrating the base of approximately 5,000 Avanti end users currently using leased Ku band capacity onto HYLAS 1 has proceeded to plan, with 10% already migrated.

Several of our Service Providers also have similar bases of end user customers who are currently using interim leased Ku band capacity. Avanti is also assisting these service providers in the migration of their end users to HYLAS 1, which amounts in aggregate to over 20,000 end users.

Finally, we confirmed that successful service launch has met contractual service parameters with all of our customers, confirmed their requirements for modem deliveries from the supplier and updated bandwidth demand.

Based on these results, it is an appropriate time to update the market on sales progress. In 2010, Avanti specified that it was confident of exceeding a target for pre-sales signed by service launch of 25%. This target metric was useful in demonstrating confidence in the ability to pre-sell meaningful amounts of capacity before launch.

Avanti is pleased to confirm that at service launch, having confirmed contracts and orders, the peak utilisation rate under HYLAS 1 aggregate contracts is 35.1% which comfortably exceeding the 25% target set pre-launch. Henceforth, Avanti will regularly report the industry standard backlog metric. 

The backlog statistics are now £139.0m for HYLAS 1, £28.4m for HYLAS 2. Avanti also notes a £113.4m option for HYLAS 2 capacity which is subject to a significant option fee.

Approximately 52% of backlog revenues relates to Enterprise and Military applications and customers (not including the HYLAS 2 option), with the balance relating to SME and Consumer broadband. Avanti expects backhaul business to soon become a significant percentage of backlog.

Avanti is also pleased to report that the increased credibility generated from successful service launch has resulted in an increase to the pipeline. The pipeline now stands at £427.2m.

--ENDS--

For further information please contact:

Avanti Communications Group Plc Tel: +44 (0) 20 7749 1600

David Williams / Nigel Fox

Cenkos Securities Tel: +44 (0) 20 7397 8900

Nicholas Wells (Nomad) / Julian Morse (Sales)

Jefferies International Limited Tel: +44 (0) 20 7029 8000

Julian Smith

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

Emma Kane / Paul Dulieu

Notes to Editors

About Avanti

¡ Avanti sells satellite data communications services to telecoms companies which use them to supply enterprise, military, backhaul and consumer users.

¡ Avanti's first satellite called HYLAS 1, launched on November 26th 2010 and is the first dedicated Ka band satellite launched in Europe.

¡ Avanti's second satellite, called HYLAS 2, on target for launch in Q2 2012. It will extend Avanti's coverage to Africa and the Middle East.

¡ Backlog is defined as the aggregate value of legally binding purchase commitments from customers and does not include framework contracts or non binding targets. Pipeline is defined as the aggregate value of potential new customer contracts for HYLAS 1 and 2 services which are at post-proposal negotiation stage.