CloudCoCo Regulatory News (CLCO)

14 November 2011

Pinnacle Telecom Group plc ("Pinnacle")

Supply Agreement with Atos

Pinnacle Telecom Group plc (AIM: PINN), the provider of cloud based technology solutions, is pleased to announce that it has entered into a supply agreement with Atos, a leading international IT services company and Worldwide IT Partner for the Olympic and Paralympic Games.

Under the terms of the agreement, Pinnacle will supply Atos with short-term communications and data services with immediate effect. Atos is a leading international IT services company generating annual revenues of EUR 8.7 billion, employing 78,500 people in more than 42 countries around the world. ATOS is also the Worldwide IT Partner for the Olympic and Paralympic Games and lead IT consultant for the London Olympic Games, working with the London OrganisingCommittee of the Olympic and Paralympic Games.

Commenting on the contract Alan J Bonner, Chief Executive Officer of Pinnacle, said:

"I am delighted that Pinnacle has secured an agreement to supply short-term communications and data services to Atos with immediate effect. This is a significant move forward for Pinnacle and we expect to see a 50% increase in orders for BBC events alone as a result of this contract and look forward to working closely with Atos on future projects.

We will be updating shareholders with more detail in the full year results to 30 September 2010, which we aim to release in February 2012."

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About Pinnacle

Pinnacle Telecom Group plc (AIM: PINN) is a value added, solutions based provider of integrated telecommunications services including IP solutions. It focuses on the SME market across the UK, where it provides a wide range of communications solutions including telecommunications calls, access and consultancy, IT support, IT Security, mobile solutions - both voice and data and hosted broadband voice services.

Pinnacle is a fully licensed Public Telephone Operator, has its own telephone network and interconnects with BT, Virgin Media and THUS. It has its own hosted voice (VoIP) platforms and engineers and owns Scotland's oldest ISP (and a founder member of Nominet), operating from its data centres in Glasgow, London and Brighton.

Pinnacle's strategy is to be a SME focused, value added, solutions based provider of next generation, cloud-based IP solutions, driven by leveraging organic opportunities as well as through targeted acquisitions. Pinnacle is seeking to acquire and grow businesses to bring together the four main elements of; traditional telephony, hosted cloud-based services, IT support and data centres. A particular target area is data centres, where the combination of recurring revenue and a platform to expand its hosted cloud-based services, would create a compelling earnings-enhancing proposition. A strategic acquisition in this area would potentially be transformational and as data centres are worldwide, it is widening the search parameters.