Nil-cost options pursuant to the LTIP

8 June 2010

Alternative Networks plc ("Alternative Networks" or the "Company")

Nil-cost options pursuant to the LTIP

The Company announces that, following the finalisation of the measurement of the performance conditions of the LTIP by the Remuneration Committee, the following awards of nil-cost options, which have been made to the participants of the LTIP, are now capable of being exercised:

The participants of the LTIP each exercised 208,338 nil-cost options (a total of 625,014 nil-cost options) on 31 March 2010. To the extent to which the performance conditions were not met, the participants had agreed that the shares would be transferred either (i) to the Company pursuant to an off-market buyback and/or (ii) to the EBT with the consent of the Panel and/or (iii) to such other person as the Company may nominate. As the performance conditions relating to these shares have now been met these provisions have lapsed.

Therefore 392,553 nil-cost options have now become exercisable by the participants of the LTIP as shown below (being the difference between the total nil-cost options granted pursuant to the LTIP (1,017,567) and those nil-cost options already exercised by the participants of the LTIP (625,014)):

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