Call Sales

On 0800 112 4000
Business Solutions

15 – Fizz Telecom (2)

June 2007 – Acquisition No. 15 – Fizz Telecom 2

AdEPT Telecom plc announces the acquisition Fizz Telecom Limited

AdEPT Telecom plc ( “AdEPT” or “the Company”), a leading independent provider of telecommunications services and landline calls, line rental and broadband is pleased to announce the acquisition of a customer base from Fizz Telecom Limited (“Fizz”) which will add over 5,000 business customers.

Fizz is a telecoms voice reseller established in 2004. In June 2006, AdEPT acquired 10,000 business customers from Fizz. This was a successful transaction and as a result AdEPT is today acquiring its remaining customer base.

The 5,000+ customers are also small businesses spending on average £35 per month.

The consideration payable by AdEPT is based upon performance criteria and is estimated at £1.26 million, to be satisfied by a cash payment of £0.95 million on completion, and the balance over the next 12 months. The total consideration will be funded out of AdEPT’s existing banking facilities.

Over the last three years, AdEPT has completed 15 acquisitions and rapidly integrated the acquired businesses, usually within 6 weeks following completion. AdEPT has a highly efficient automated back office system, which is fully integrated to manage all customer processes. This process model is applied to companies it acquires, and together with AdEPT’s lean cost structure enables it to achieve industry leading EBITDA margins.

AdEPT today also announced its preliminary results for the year ended 31 March 2007.

Commenting on the acquisition, Roger Wilson, Chairman of AdEPT Telecom said: “This is the second Fizz acquisition in twelve months. As a result we know Fizz’s operation well and our understanding of their customer base is excellent. The additional 5,000 customers take our number of business customers to over 20,000 which provide us with significant opportunities to cross-sell additional products. We look forward to rapidly integrating the acquisition and generating the operational benefits.”