Contract wins

Date: 21 January 2010

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

Embargoed for release: 0700hrs

Avanti Communications Group plc

Contract Wins

Avanti Communications Group plc (AIM: AVN), the broadband satellite operator, is pleased to announce that it has won a two new contracts to further develop and demonstrate technology to deliver video to the edge of terrestrial networks using Avanti's HYLAS 1 satellite capacity.

The first project, named "NXY", is a €500,000 project funded by the European Space Agency, which will develop video caching technology in conjunction with Mpeg 4 IP broadcasting to lighten the video burden on mobile phone and fixed line ISPs networks, reducing network congestion and cost.

A second project worth £216,000 from the UK's Technology Strategy Board (TSB), "Digital Advanced Rural Testbed" (DART), is one of five "Networks Service Demonstrators" selected by the TSB to become national 'hotspots' where businesses will be able to test new business models, applications and services that can be supported by advanced, open and flexible networks and network services.

Commenting, David Williams, Avanti Chief Executive, said:

"The role of Avanti's satellites in the broadband market is well established but increasingly it is obvious that the relentless increase in demand for bandwidth around the World creates new urgent reasons to integrate satellite capacity into terrestrial networks, especially where video delivery is involved and these contracts provide excellent support for this development."

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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

Julian Morse / Max Hartley

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

Julian Smith

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

Emma Kane / Paul Dulieu / Samantha Robbins

Notes to Editors:

About Avanti

·; Avanti sells satellite broadband services to telecoms companies which use them to supply residential, enterprise and institutional customers.

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

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

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

·; Avanti's systems can provide consumer broadband services at speeds of 10Mb per second at competitive prices, and other wholesale services at up to 200Mb.