Results of Tender Offer

26 October 2012

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF IRELAND AND THE REPUBLIC OF SOUTH AFRICA AND ANY OTHER RESTRICTED JURISDICTION

Alternative Networks plc (the "Company")

Successful £5m Share Repurchase Tender Offer - more than 2 times oversubscribed

The Company announces that pursuant to the Tender Offer which was announced on 11 October 2012 and which closed at 1.00 p.m. on 25 October 2012, valid tenders were received for 4,219,279 ordinary shares of 0.125 pence each in the capital of the Company ("Ordinary Shares"). The Tender Offer Price, calculated as 105 per cent. of the average closing middle market price per Ordinary Share for the five Business Days immediately preceding today's date, rounded down to the nearest whole penny is 251 pence per Ordinary Share.

Under the terms of the Tender Offer, each Qualifying Shareholder was entitled to tender all or part of its Ordinary Shares for cash to be acquired by Investec Investment Banking, for up to a total aggregate consideration of £5 million, for successfully tendered Ordinary Shares at the Tender Offer Price.

Accordingly, Investec Investment Banking will acquire 1,992,031 Ordinary Shares (the "Tendered Shares") at the Tender Offer Price of 251 pence per Ordinary Share. Qualifying Shareholders who tendered their Ordinary Shares will therefore be scaled back by 52.8 per cent. or will have successfully tendered 47.2 per cent. of the shares they tendered.

Under the terms of the Tender Offer, the purchase of the Tendered Shares will be effected by Investec Investment Banking today. The Tendered Shares purchased by Investec Investment Banking will be subsequently acquired for cancellation (the "Cancellation") by the Company at the Tender Offer Price in accordance with the terms of the Repurchase Agreement previously entered into by the Company and Investec Investment Banking on 11 October 2012.

The consideration payable to Shareholders who have successfully tendered Ordinary Shares under the Tender Offer is expected to be despatched to such Shareholders, or appropriate arrangements made in accordance with the CREST assured payment arrangements, by 9 November 2012.

On completion of the Tender Offer and Cancellation of the Tendered Shares, the Company will have 46,352,695 Shares in issue with voting rights.

Terms used in this announcement and not otherwise defined herein have the same meanings given in the circular containing the formal terms and conditions of the Tender Offer sent to Shareholders on 11 October 2012.

Enquiries:

Alternative Networks plc 020 7801 7156

James Murray, Chief Executive Officer

Edward Spurrier, Chief Financial Officer

Investec Bank plc 020 7597 5970

Patrick Robb

Andrew Pinder

Pelham Bell Pottinger 020 7861 3112 / 07802 442 486

Archie Berens

Investec Investment Banking, a division of Investec Bank plc, which is regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Alternative Networks plc in connection with the proposals in this Circular, and will not be responsible to anyone other than Alternative Networks plc for providing the protections afforded to customers of Investec Investment Banking or for providing advice in relation to the proposals in the Circular or any other matter in relation to the contents of the Circular or this announcement.