AVN.L Regulatory News (AVN)

3rd August, 2011

Avanti Communications Group plc ("Avanti")

New Contract with Hughes Network Systems Ltd

Avanti is pleased to announce a new and additional agreement with Hughes Network Systems Ltd ("Hughes"). Hughes has now fully allocated its initial purchase of capacity on HYLAS 1 to existing clients. In order to support new business, particularly with longstanding Hughes client, Bentley Walker, which is now installing HYLAS 1 services in the UK and Spain, Hughes has signed a new contract in additional beams over and above their original commitment.

Commenting, Avanti's Chief Executive, David Williams, said "Hughes are an important partner for Avanti with existing contracts in relation to HYLAS 1 and HYLAS 2. I am delighted that they have fully used their initial £7.5m commitment on HYLAS 1 so quickly and pleased to be extending our business together around Europe. It seems clear to us that with over 70 customers now installing HYLAS 1 services in 14 countries in Europe, we have the distribution in place to fully sell out all of our HYLAS 1 capacity within our three year target. In the meantime, we continue to see very strong interest in the capacity to be provided by HYLAS 2, particularly in the developing countries that it will cover. This interest is from existing HYLAS 1 and new customers. HYLAS 2 remains on track for launch in Q2, 2012."

For further information please contact:

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

David Williams

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

Nicholas Wells (Nomad) / Julian Morse (Sales)

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

Julian Smith / Thomas Rider

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

Emma Kane / Paul Dulieu

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, is on target for launch in Q2 2012. It will extend Avanti's coverage to Africa and the Middle East.

Ends