Contract Win

Avanti Communications Group plc

Contract Win

Avanti Communications Group plc (AIM: AVN), is delighted to announce that it has signed a 5 year agreement with BT for the provision of satellite broadband services via its HYLAS 1 satellite, successfully launched into orbit on November 26th 2010.

Under this agreement, Avanti will supply satellite broadband services as required by BT as part of a recently announced £132 million next generation access project in Cornwall and the Isles of Scilly, of which BT is a major partner. The agreement is not limited to Cornwall, however, and will allow BT to provide satellite broadband services to other parts of the UK. The estimated contract value is £1.2m.

The Cornwall and Isles of Scilly project expects to offer alternative technologies, such as satellite broadband, to the minority of homes and business in Cornwall and the Isles of Scilly which remain unable to receive super-fast fibre broadband. It shows how the challenge of next generation broadband access in rural areas can be met and that a combination of technologies delivered by specialists, can ensure that the hardest to reach areas of the UK need not be left behind when it comes to high speed broadband.

Commenting, David Williams, Avanti Chief Executive, said:

"I am delighted that Avanti will be working alongside BT to ensure all residents of Cornwall will be able to connect to high speed broadband services. We firmly believe that our complementary business models will prove to be a vitally important example to the rest of the UK and Europe of how to solve the digital divide." 

---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

Nick Wells / Max Hartley

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

Julian Smith / Oliver Griffiths

Redleaf Communications Ltd Tel: +44 (0) 20 7566 6700

Sam Robbins / Paul Dulieu

Notes to Editors:

For further information about the next generation broadband project in Cornwall and the Isles of Scilly visit www.cornwalldevelopmentcompany.co.uk

About Avanti

¡ Avanti sells satellite broadband services at speeds of up to 10Mbps 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 to serve Europe.

¡ Avanti's second satellite called HYLAS 2 is fully funded and is on target to launch in Q2 2012. It will extend Avanti's coverage to Africa and the Middle East.

¡ The market for 2Mb satellite broadband products in the markets served by Avanti is estimated at more than 100 million households.

About BT

BT is one of the world's leading providers of communications solutions and services operating in more than 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to our customers for use at home, at work and on the move; broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2010, BT Group's revenue was £20,911 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York. For more information, visit www.bt.com/aboutbt