Issue of Equity

27 Nov 2006 09:43

FOR IMMEDIATE RELEASE 27 November 2006

PNC TELECOM PLC ("PNC" or the "Company") ISSUE OF EQUITY

At a Board Meeting on 22 November 2006, the Board received and accepted a request from Cairns Investment Holdings Limited ("Cairns"), pursuant to the issuance of Convertible Loan Notes totalling ‚£500,000 convertible at 0.1p per share at any time for 7 years from 29 April 2005 to 28 April 2012, for the conversion of a ‚£40,000 Loan Note and has agreed to allot 40,000,000 new ordinary shares at 0.1p per share (the "Shares") in accordance with the terms of the Loan Note Instrument.

The resulting holding of 40,000,000 ordinary shares will represent approximately 19.22% of the enlarged issued share capital.

Application will be made for the Shares, which will rank pari passu with existing ordinary shares, to be admitted to trading on AIM.

For further information:PNC Telecom Plc Leo Knifton Tel: +44 (0) 207 251 3762 Beaumont Cornish Limited Nominated Advisers Tel: +44 (0) 207 628 3396 Roland Cornish