Disposal

365 Corporation PLC
29 April 2002


                              365 Corporation plc 
         Disposal of Hardware Services and Completion of Restructuring


365 Corporation plc ('365 or 'the Company'), the UK listed speech application
service provider, today announces that it has completed the sale of the trade
and assets of its Hardware Services business to three members of its Business
Division management team which signals the end of a 12 month restructuring
programme. Effective immediately, 365 will dispense with its divisional
structure and operate as a unified, fully integrated business from its primary
location in Hemel Hempstead and will focus on the provision of Speech Solutions
to large corporations and organisations.

Under the terms of three separate agreements, Rainbow Telecom Ltd (a company
controlled by Dave Corgat), Planet Business Solutions Ltd (a company controlled
by Richard Stretch) and John Donohoe (trading as Absolute Voice and Data)
(collectively - 'the Purchasers') will acquire selected assets of 365's Hardware
Services business for cumulative consideration not exceeding £500,000, subject
to audit. The Purchasers have also acquired the rights to sell telephone
systems, maintenance and related services to specific Network Services
customers. In addition, the Purchasers have each entered into five-year
contracts with 365 for the exclusive provision of network services to their
respective customer bases.

The consideration, which is secured on the underlying customer bases and payable
in 2007, may reduce to zero depending on the achievement of certain performance
targets under the network service contracts entered into by each individual
Purchaser. Following the completion of these transactions, 365 is no longer
engaged in the direct provision of Hardware Services to its customers.

Martin Turner, Chief Executive Officer, said:

'We are delighted to reach a satisfactory conclusion to our restructuring
programme which was designed to move 365 into profitability and safeguard its
financial future and which has seen our cost base reduce by almost £20m
annually.

It is our aim to become Europe's leading speech applications service provider
and profitably exploit the anticipated growth in demand for speech solutions
across Europe. We are well-positioned, well-funded and fully focussed on
achieving this goal.' 

For further enquiries, please contact

365 Corporation plc                             Tel: [phone]
Martin Turner, Chief Executive Officer
Nik Philpot, Chief Operating Officer

Buchanan Communications                         Tel: [phone]
Mark Edwards/Bobby Morse

Background to the Transactions and Supplementary Unaudited Financial
Information

Through its wholly-owned Symphony Telecom subsidiary, 365's Business Division
has provided a 'one-stop-shop' of integrated telecommunication services to
businesses in the UK and Ireland. These services have included the provision of
telephone systems ('Hardware Services'), and fixed line, mobile and data resale
services ('Network Services'). In order to quickly build critical mass and
extend geographical coverage, 365 expanded its Business Division aggressively
over the past two years through a combination of direct sales, new dealers,
joint ventures and a number of complementary acquisitions.

As part of the 365's restructuring program, the Business Division was separated
into two distinct operations - Network Services and Hardware Services.

Hardware Services performed poorly during the year to 31 March 2001 due to
adverse market conditions and competitive pressures, despite management changes
and a significant reduction in costs. The Directors therefore announced on 7
March 2002 their decision to exit from Hardware Services, while protecting any
related Network Services business sold to common customers. It was also decided
to integrate its profitable Network Services business into 365's continuing
operations, and dispense with a 'divisional' organisational structure going
forward. 365's operation in Ireland is not affected by this disposal.

For the twelve months ended 31 March 2001, Hardware Services reported turnover
of £8.0m, and operating losses before goodwill amortisation of £2.1m. Goodwill
amortisation totalled £1.2m for the year. As at 31 March 2001, Hardware Services
(excluding Ireland) had net liabilities totalling £0.1m.




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