SMRT.L Regulatory News (SMRT)

4 Dec 2006 07:00

Coms plc acquires Tesco internet telephony supplier, Exchange XT Coms plc ("Coms, or "the Company") has acquired Exchange XT Limited("ExchangeXT") to accelerate revenues, enhance the technology platform andstrengthen its management team. This also marks the Company's first step ofachieving its stated aim of consolidating the fragmented internet telephonysector. ExchangeXT owns Superline Telecommunications Limited ("Superline") and operatesits internet telephony and telecom services through the Superline and Call Unionbrands and associated websites and has 8,738 subscribers. In addition, Superlinesells its services through distributors, including Mobibo, who sell the "Tovo"branded version of the Superline VoIP service through retail chains includingTesco, as well as through WiMAX service providers including So Broadband. ExchangeXT owns an Ericsson telecom switch which is interconnected with GlobalCrossing and Verizon (MCI Worldcom). The company has developed its own VoIPinternet telephony and billing platform and has a small development,administration and customer support team, all of which will transfer to Coms. The 2005 audited accounts for ExchangeXT and Superline show a consolidatedincome of £911,593, a gross profit of £406,092, a trading loss of £30,364 and anet asset value of negative (£78,158). Coms has paid a consideration of £468,253to acquire ExchangeXT, its subsidiary companies and associated assets. Uponcompletion, David Cargill, CTO of ExchangeXT, entered into an executive serviceagreement with Coms.com Limited. The remaining two directors resigned from theboard. The assets acquired, particularly the Ericsson telecom switch which will enablecompanies to transfer their existing telephone number to the Coms VoIP service,will make it easier for Coms to enter the hosted IP PBX and IP Centrex marketsand integrate future acquisitions. Jason Drummond, executive Chairman commented, "Bringing the two companiestogether will provide us with a leap forward in our business plan. David Cargillhas an excellent track record of developing VoIP services, and will implementour technology roadmap, and bring low-cost internet telephony services to amainstream audience". "The time to consolidate the internet telephony sector is now" said RichardBennett, Corporate Development Officer, "voice is no longer a stand alonetelecom service, but an integrated feature of Web 2.0". Date: 04 December 2006 Contact: Coms plc Richard Bennett rb@coms.com +44 (0)7966 388 374 About Coms Coms was founded by Jason Drummond in 2000 with the vision of using the Internetto carry and deliver voice telephone calls. Voice over IP (VoIP) is changing theway consumers and businesses make and receive their telephone calls. Coms offersa low-cost VoIP service that can be combined with services provided by broadbandInternet suppliers to make and receive telephone calls. Coms subscribers canmake high quality calls over the Internet wherever a high-speed Internetconnection is available, including in wireless hotspot as they are allocatedtheir own location free unique user telephone number. Subscription is availablein a range of packages. See www.coms.com for more information. Coms is an Ofcom authorised Public Electronic Communications Network (PECN) anda member of the Internet Telephony Service Providers Association (ITSPA). Coms is listed on the London Stock Exchange AIM market (LSE:COMS) Copyright Business Wire 2006