Contract win

26 March 2010

SPIRITEL PLC

("SpiriTel" or "the Group")

Contract win with major luxury hotel group

New client for SpiriTel's IP Communications line of business

SpiriTel plc, (AIM: STP), the business communications service provider, is pleased to announce that the Group's IP Communications line of business has won the contract to supply an integrated voice and data solution for a new 5 star hotel development in central London. The client is a major global luxury hotel group, highlighting SpiriTel's continued strength in the hospitality sector.

Under the terms of the deal, SpiriTel will provide a fully converged IP based voice and data solution including networking infrastructure, WiFi and Mitel IP telephony and is an example of the Group's ability to deliver complex converged communications services for major international clients.

The contract was won against competition from larger service providers and the initial value is £0.8m. Management has strong expectations that the total contract revenues will grow in time under a long term support agreement.

Commenting on the contract win, Alastair Mills, Chief Executive of SpiriTel said: "We are delighted to have been awarded this contract, which is a significant demonstration of our ability to deliver complex converged solutions for major corporate customers. Despite a challenging economic environment, SpiriTel Business has delivered organic growth over the past year and this contract underpins management's confidence that this trend will continue in the year ahead."

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 our '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.