Year end trading update

Avanti Communications Group plc

Year-end trading update

London - 11 July 2012. Avanti Communications Group plc (AIM: AVN, "Avanti" or "the Company"), the satellite operator, has published today a trading update for the year ended 30 June 2012.

Total revenues and operating income for the 12 months to 30 June 2012 are expected to be £17.8m (2011: £6.1m.)

Avanti has increased its Backlog (i.e. binding contracts for the sale of capacity in future periods) to £246m, an increase of £33m since Avanti last reported Backlog as at the end of April, 2012. The pipeline of potential sales stands at £502m.

Avanti estimates that it needs to add approximately £11m per month to its Backlog in order to meet its objectives of selling all the capacity of HYLAS 1 and HYLAS 2 within three and four years of service launch, respectively. In the eight months since Avanti established this KPI, it has exceeded this target.

The Company's second satellite, HYLAS 2, has completed its testing and has been successfully shipped to French Guiana prior to its launch on 2 August 2012 at approximately 9.50pm, UK time. (http://www.avantiplc.com/hylas2/#)

HYLAS 2, which has almost three times the bandwidth capacity of HYLAS 1, will substantially increase the Company's international coverage. It will provide high speed data capacity to a growing range of telecoms, enterprise and government customers in fast growing markets in Eastern and Southern Africa, the Middle East and across the Caucasus. 80% of Avanti's total fleet capacity will address emerging markets.

Yesterday, at the Farnborough Air Show, Avanti performed a signing ceremony with the European Space Agency to mark the commencement of the HYLAS 3 project.

David Williams, Chief Executive, commented:

"We have maintained our sales momentum and remain on course to fill the capacity of both HYLAS 1 and HYLAS 2 by the target dates in 2014 and 2016.

"Demand in the fast growing economies across Africa and the Middle East is as strong as anticipated and therefore the launch of HYLAS 2 is very timely."

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For further information please contact:

Avanti Communications Group Plc Tel: +44 (0) 20 7749 1600

David Williams, Chief Executive

Sean Watherston, Director of IR and Corporate Finance

Cenkos Securities plc Tel: +44 (0) 20 7397 8900

Nicholas Wells (Nomad)/Julian Morse

Jefferies Hoare Govett Tel: +44 (0) 20 7029 8000

Neil Collingridge/Thomas Rider

College Hill Tel: +44 (0) 20 7457 2020

Adrian Duffield/Jon Davies

About Avanti

·; Avanti sells satellite data communications services to telecoms companies which use them to supply residential, enterprise and institutional users.

·; Avanti's first satellite called HYLAS 1, launched on November 26th 2010 and is the first superfast broadband satellite launched in Europe.

·; Avanti's second satellite, called HYLAS 2, is on target for launch in August 2012. It will extend Avanti's coverage to Africa, Caucasia and the Middle East.

·; Avanti's third satellite HYLAS 3, to be launched in partnership with ESA in 2015, will provide further capacity in the EMEA region.

·; 80% of Avanti's fleet capacity will address the Emerging telecommunications markets of Africa, Caucasia and the Middle East.