Award of contract

25th August 2010

SPIRITEL PLC

("SpiriTel" or "the Group")

SpiriTel wins £5m managed services contract with Punch Taverns

SpiriTel plc, (AIM: STP), the business communications service provider, today announces that Punch Taverns plc ("Punch") has awarded the Group a contract to provide a multi-site converged voice and data service to over 800 of Punch's 7,100 UK sites. The contract is the largest awarded to SpiriTel to date and is expected to generate revenue in excess of £5m over its three year life.

Under the terms of the contract, SpiriTel will provide a wide area data network and hosted IP telephony service, using the Group's award winning VoIP platform. The service is expected to cover 5,000 connections across Punch's managed estate. SpiriTel has provided maintenance services for legacy telephone systems at Punch since 2008, and the new contract is therefore a further example of the Group's strategy to cross sell converged communications solutions into existing customers.

Commenting on the contract win, Alastair Mills, Chief Executive of SpiriTel, said: "We are delighted to have been awarded this contract to manage the voice and data services of one of the UK's leading pub operators. This is a significant contract win, in the rapidly growing area of hosted telephony, and the scale of the deal highlights SpiriTel's continuing ability to service large corporate customers using our award winning solutions. SpiriTel's ability to grow organically whilst also generating acquisitive growth, during challenging market conditions, has been a key differentiator from the majority of our peers. This contract, one of the largest of its kind in the UK, clearly demonstrates our ability to gain market share through competitive, innovative solutions."

Bob Broadbridge, CIO of Punch Taverns, said: "We were very impressed with SpiriTel's proposal, which gave us the technical solution we need, with a great service proposition and value for money. We were also impressed with their track record in the hospitality sector. We are looking forward to forging a closer working relationship with SpiriTel as we ensure our estate remains appropriately serviced in this rapidly evolving technological environment."

For further information please visit www.spiritelplc.com or contact:

Notes to Editors

SpiriTel is a business communications group which is taking advantage of the opportunities created by rapidly changing telecoms markets in the UK as the migration to Internet Protocol (IP) based services accelerates. The Group is a consolidator of the highly fragmented UK telecoms reseller market and is building a substantial customer base and scale through selective earnings-enhancing acquisitions. We are organised into two divisions, SpiriTel Technologies - focused on our infrastructure and IP products and services - and SpiriTel Business, which provides our fully integrated range of voice and data services direct to business customers.

Today, the Group offers a 'complete business communications' portfolio to a customer base of small and medium sized enterprises and an increasing number of larger national and international organisations. We are a recognised leader in the provision of new, but proven, Voice over IP (VoIP) solutions that are firmly based on the old-fashioned service values, which run throughout the Group.