Very Early Stage Approach Rejected

23rd October 2012

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

Very Early Stage Approach Rejected, Tender Offer Remains Open

The Company announces that, following the announcement of the tender offer on 11 October 2012, a third party approached the Company to discuss the basis on which it might be willing to make an offer for the entire issued share capital of the Company. This was a highly preliminary approach.

The Board gave due consideration to this outline plan, but concluded that the proposed consideration was not sufficiently attractive that it would represent a compelling proposition for shareholders. This has been communicated to the third party concerned who in turn has confirmed that it is no longer currently considering making an offer for the Company. 

The proposed cash return to shareholders by way of tender offer announced on 11 October 2012 remains open for acceptance and the procedure for acceptance is set out in the tender offer document dated 11 October 2012. Should any shareholder who has already accepted the tender offer wish to reconsider its decision in light of this announcement, they will be allowed to withdraw or amend their tender and in this instance should contact Capita Registrars Limited on telephone number 0871 664 0321.

The Directors of the Company confirm that their respective intentions regarding tendering their own shares remain as set out in the tender offer document dated 11 October 2012, save that Mr Edward Spurrier intends to tender 100,000 shares registered in his own name rather than the EBT Trustees tendering 200,000 shares held by him in the EBT as was originally stated in the circular.

Enquiries:

Alternative Networks plc 020 7801 7156

James Murray

Edward Spurrier

Investec Bank plc 020 7597 5970

Patrick Robb

Andrew Pinder

Pelham Bell Pottinger 020 7597 5970 / 07802 442486

Archie Berens

END