Acquisition - IP CCTV

Pinnacle Telecom Group plc

("Pinnacle" or "the Company")

Pinnacle Telecom Group plc, the provider of cloud-based technology solutions, is pleased to announce that it has acquired the business and assets of a leading supplier to the security industry for IP ("Internet Protocol") based Closed Circuit Television ("CCTV").

The threat of terrorist attacks in recent years has led to a demand for high-quality, reliable CCTV surveillance. IP CCTV is providing the CCTV industry with an opportunity of solving today's surveillance, which is not technically possible or economically viable with traditional analog CCTV systems.

Under the terms of the acquisition agreement, Pinnacle has acquired the customers and assets of the business for a cash consideration, which has been satisfied from internal Company funds. To ensure continuity and a successful integration, the key members of the acquired business will remain and transfer to the Company.

The acquisition is not a substantial transaction or a fundamental change of business under the AIM Rules for Companies however, the Pinnacle Board believes that acquiring an established quality provider of IP CCTV data to the security industry, will enable the Company to offer these services much more cost effectively, utilising Pinnacle's existing network with less risk, and is quicker than building the operation in-house. Furthermore, Pinnacle expects that owning this resource will significantly enhance its prospects in future customer bid processes. The Company also expects to build on the customer relationships that the vendor already has with its blue chip customers.

"IP is having a significant impact on many aspects of business and I am delighted that we have completed an acquisition which allows us to enter the IP CCTV market. This provides us with an opportunity to leverage our existing network and our expertise as a long established ISP and Public Telecom Operator, by supplying not only circuits to the end customers whose premises are monitored, but also to the Alarm Receiving Centre's who monitor the sites.

We have acquired the intellectual property that in the event of an attack, makes it possible to transparently failover to other transmission mediums, such as mobile or alternative fixed line access in a matter of a seconds, ensuring that the uptime each monitored site has is as close to 100% as possible. All of which is achieved without any Dynamic IP address changes or reconfigurations of the Alarm Receiving Centre.

Another unique intellectual property aspect of the offering is Secure Dynamic Remote Access ("SDRA"). 

SDRA allows anyone with the correct security credentials to access their IP CCTV images from any IP connection in the world, either from fixed line or mobile, dynamic or static IP address. This offers an extra tier of security and firewalling than that of the built in security ordinarily provided by competitor solutions.

The acquired business is currently specifically focused on servicing the security industry through CCTV installers and Alarm Receiving Centre markets; however, this technology could also easily be made available to mainstream businesses. We intend to build on our strategy of expanding the Company through bolt-on, well priced, acquisitions; thereby enhancing our services, particularly through the deployment of next generation IP based solutions, as well as strengthening our organic growth capabilities."

7th July 2011

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, 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 converged communications services, driven by leveraging organic opportunities as well as through targeted acquisitions. Pinnacle are 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 our 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, we are widening the search parameters.