MANX.L Regulatory News (MANX)

6 December 2016

Manx Telecom secures contract with China Unicom Global Ltd

Manx Telecom Plc (AIM:MANX; the "Company"), the leading communication solutions provider on the Isle of Man, has signed an agreement with China Unicom Global Limited ("CUG"), a subsidiary company owned by China United Network Communications Group Co. Ltd, more commonly known as the China Unicom Group, the world's fourth largest mobile service provider by subscriber base.

Manx Telecom will provide the connectivity to facilitate CUG's 'CUniq' UK mobile and roaming product, following its launch in London on 2 December 2016. CUniq is an MVNO (Mobile Virtual Network Operator) service that will provide both outbound travellers from China, diaspora communities living in the UK and enterprise customers with one sim card that allows them to have a UK, China and Hong Kong local product along with global roaming across 45 countries and regions.

CUG chose to work with Manx Telecom due to its unique connectivity solutions and strategic partnerships across the globe. Manx Telecom is providing local UK connectivity via its relationship with Telefonica.

The China Unicom Group currently has 350 million mobile subscribers and is expecting to continue its growth plans in China and via its Hong Kong MVNO. There are over 1 million China to UK visits every year and CUG expects to make major inroads to this market in the coming years. In 2015, 269,631 Chinese residents visited the UK, a 45% increase from the previous year and 12.5m visited a destination in Europe.

Gary Lamb, Chief Executive Officer at Manx Telecom, commented: "We are delighted to have signed a contract with China Unicom Global, one of the world's largest telecom's companies. This is a major coup for our Global Solutions division, and another indication of our growing reputation in the strongest signal SIMs sector where we are already the UK market leader. We look forward to working closely with China Unicom to make this new partnership a great success."

Ms Zhou Lisong, Executive Vice-President of CUG, said: "The launch of CUniq is a key component of our international expansion strategy and the result of excellent co-operation between CUG and Manx Telecom. This agreement will allow us to provide customers who are travelling outside our home market with a convenient and reliable way to stay in touch with their family and friends."

The launch in London was attended by Ms Zhou and more than 200 VIPs and guests, including Mr Zhu Qin, China Embassy Minister in the UK; Mr Michael Charlton, Board Member and General Manager of UK Trade & Investment; Mr. James Weifeng JI, Asia Chief Regional Officer of Telefonica; Mr Jiang Zhengxin, Deputy General Manager of China Unicom; Ms Wang Xiaohua, General Manager of China Unicom (Europe) Operations Limited; Gary Lamb, Chief Executive Officer of Manx Telecom.

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About Manx Telecom

§ Manx Telecom is the leading communication solutions provider on the Isle of Man, offering a wide range of fixed line, broadband, mobile, and data centre services to businesses, consumers and the public sector on the Isle of Man as well as a growing portfolio of innovative hosting and "Smart SIM" solutions to off-Island customers.

§ Manx Telecom has a record of innovation, being the first European operator to launch a 3G mobile service and the first in the world to launch a 3.5G mobile service. 4G service launched in the summer of 2014, and it is now available to contract and pre-pay customers with 99% population coverage. The Company's high speed VDSL broadband service (Ultima) is available to 91 per cent of homes on the Island. A VDSL Plus service launched in February 2015.

§ The Company has three data centres (two of which are Tier 3 designed) plus international connectivity and its operations are business-critical to the economic strategy of the Isle of Man.

§ One of the largest employers on the Island, Manx Telecom employs 300 people. The company plays a major role in the wider community through a range of activities, including charitable donations, sponsorships, and corporate social responsibility initiatives.

§ The company is proud to sponsor the Manx Telecom Parish Walk, Tough Mann Adventure Challenge, Manx Telecom End2End Mountain Bike Challenge, Team Manx Telecom (Manx Road Club), and Royal Manx Agricultural Show as well as other smaller events. Manx Telecom also donates annually to local causes through the company's "It's our Community" programme.

§ The Isle of Man has a resilient and growing economy which has experienced 31 years of unbroken GDP growth. Unemployment is low at 1.9 per cent, and there is a zero per cent corporate tax rate which applies to the vast majority of Manx Telecom's business and means that the Group currently pays no corporation tax on its annual profits.

§ Manx Telecom is listed on the Alternative Investment Market of the London Stock Exchange with the ticker MANX.