Avonline Contract Announcement

Date: 31 May 2011

On behalf of: Avanti Communications Group plc ("Avanti" or "the Company")

Embargoed until: 0700hrs

Avanti Communications Group plc

Contract Announcement

Avanti Communications Group plc (AIM: AVN), the satellite operator, is pleased to announce that it has signed a 3 year contract with Avonline PLC for the sale of capacity across the UK using Avanti's Guaranteed Network Operator (GVNO) product. Avonline has an existing managed service customer base with Avanti that will be migrated to the upgraded and extended GVNO service and then this will be used to grow its business-to-business service portfolio further with Avanti. The GVNO product provides the service provider with guaranteed 24x7 ownership of a dedicated amount of bandwidth and associated network management resources so that they can manage and provision their own services with maximum flexibility across different markets and application types.

Commenting on the contract win, David Williams, Chief Executive of Avanti Communications, said:

"I am delighted that Avonline has chosen to deepen its relationship with Avanti because of the flexibility of our GVNO product. This will allow them to customise their services, fully manage their customer base and maximise the efficiency of their bandwidth. Avonline is a core partner in the migration of our customer base onto HYLAS 1 and together we are delivering the promise of eliminating the UK's digital divide."

Mark Wynn, Managing Director of Avonline said:

"Avonline is delighted to be extending our existing commitments with Avanti Communications and developing our established relationship and strong Avanti customer base. We believe that Avanti and HYLAS 1 enables us to offer a unique range of services to our customers and we are very excited about the potential of the Ka Band satellite services in the coming months."

---ENDS---

For further information please contact:

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

David Williams

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

Nicholas Wells (Nomad) / Julian Morse (Sales)

Jefferies International Limited Tel: +44 (0) 20 7029 8000

Julian Smith

Redleaf Polhill Tel: +44 (0) 20 7566 6700

Emma Kane / Paul Dulieu

Notes to Editors:

About Avanti

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

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

·; Avanti's second satellite, called HYLAS 2, is on target for launch in Q2 2012. It will extend Avanti's coverage to Africa and the Middle East.

·; For service providers, Avanti offers three contract variants:

- Shared Virtual Network Operator (SVNO): whereby the customer buys units of broadband service and Avanti manages the network for them. The customer commits to as minimum number of units per annum.

- Guaranteed Virtual Network Operator (GVNO): whereby the service provider buys guaranteed Megabits of managed service and controls the system themselves by logging onto the satellites through Avanti's "OSS" Customer Software system.

- Hosted Network Operator (HNO): whereby the customer buys raw Mega Hertz of bandwidth and installs its own infrastructure at Avanti's Gateway Earth Station.

About Avonline PLC

Avonline plc is one of the UK's leading Installation and Business Services companies. Established in 1981, the company employs around 400 engineers installing and supporting broadband and digital services to customers across Europe. Avonline has a specialist division deploying broadband satellite solutions to consumers and business customers. Avonline's Satellite Broadband services span from individual satellite broadband connections through to high speed networks supporting VPN, VoIP, video and broadband data for enterprise customers. Avonline actively supports the UK Government's Digital Inclusion policies, is a partner of the Race Online 2012 initiative and is supporting the Welsh Assembly's Broadband Support Scheme. For more information visit www.avonlinebroadband.co.uk