Acquisition

Intec Telecom Systems PLC 11 September 2003 Intec Telecom Systems PLC - Acquisition of Digiquant A/S of Denmark • Intec acquires entire business, including a powerful data services-oriented OSS/BSS product set, worldwide customer base and experienced management and staff teams London, 11 September 2003 - The Board of Intec Telecom Systems PLC ("Intec" or "the Company"), a leading provider of telecoms Operations Support Systems ("OSS"), is pleased to announce that it has signed an agreement to acquire Danish company Digiquant A/S, a global supplier of OSS/BSS (Business Support Systems) software for next-generation data services in wireless and fixed-line service providers. The consideration for the entire Digiquant group will be satisfied through the issue of approximately 15.96 millon new Intec shares worth €9.545 million (£6.7 million) plus the repayment of €1 million (£0.7 million) of outstanding loans. Digiquant brings to Intec strong synergies with its client base and product offering. Its award-winning IMS product line is used by more than 50 service providers worldwide, including companies such as Telefonica, Tiscali, Telecom Italia, Belgacom, Telekom Malaysia, iBasis and Omnitel Vodafone. IMS allows carriers, service providers, businesses and other users of data networks to manage and bill for advanced, next-generation services. Intec believes that the capabilities of the Digiquant product set are highly complementary to its own OSS products which address key operational requirements for large telecoms operators in both traditional and next-generation markets. Digiquant currently has 128 staff based in Roskilde (Denmark), Atlanta, Rome, Singapore and the UK, plus a number of international sales offices. Digiquant's present owners include Cisco, General Atlantic Partners, Index Ventures, Vertex Management, and Digiquant management and staff. Digiquant reported total revenues of €16.6 million (£10.4 million) in 2002 and net assets of €3.5 million (£2.3 million). 2002 loss before interest, tax, depreciation and amortisation was €7.4 million (£4.6 million) and loss after tax was €12.4 million (£7.8 million) after restructuring charges of €2.0 million (£1.3 million). Digiquant has continued its restructuring program during the early part of 2003. Intec does not expect the acquisition to have a material impact on its current business year, which ends on 30 September 2003. In 2002 Digiquant generated 60% of its revenues in EMEA, 21% in the Americas, and 19% in Asia-Pacific. Digiquant has over 50 customers representing 72 installed systems in 32 countries. "Digiquant is a well-managed business, with an outstanding product, that has been constrained in its ability to move forwards in the current market due to a lack of critical mass," said Intec's Executive Chairman, Mike Frayne. "Taking into account its present revenue stream, and operating efficiencies that we can create in the enlarged business, we believe that this is an exceptionally attractive deal that can contribute positively to Intec's existing capabilities in the next-generation services market and thus the strength of the business going forward." "Acquiring Digiquant is an exciting step for Intec," added Chief Executive Kevin Adams. "As well as a solid contribution to future revenues and earnings we expect that Digiquant will substantially expand our technical capabilities into some important new markets. Our combined OSS/BSS offering will have unmatched functionality for communications companies, particularly those operating in wireless and next generation data services." "We are very pleased to have secured the future of the Digiquant business and product line by becoming part of a successful, global OSS company like Intec," said Digiquant founder and CTO, Hasse Rasmussen. "Combining Digiquant's technology and Intec's global distribution capabilities opens many doors for both companies, as well as allowing Digiquant customers to be fully confident in the future of the product set." Digiquant's OSS/BSS product set allows carriers and other businesses, including service providers and non-telecom end-user enterprises that operate data networks or services, to manage numerous functions, from initial service provisioning and activation through to customer billing and partner management. The product is used within a wide range of organisations, including GSM operators, major ISPs, traditional carriers and end-user companies. For further information: Kevin Adams, CEO Intec Telecom Systems PLC +44 (0) 1483 745800 kevin.adams@intec-telecom-systems.com Andrew Rodaway Intec Telecom Systems PLC +44 (0) 7768 808082 andrew.rodaway@intec-telecom-systems.com Cubitt Consulting Fergus Wylie/Sarah Brydon +44 (0) 20 7367 5100 fergus.wylie@cubitt.com About Intec Telecom Systems Intec Telecom Systems is an award-winning worldwide Operations Support Systems ("OSS") vendor for fixed, mobile and next-generation networks (ie. WLAN, 3G and IP), with more than 340 customers for its products worldwide. Founded in 1997, Intec was listed on the London Stock Exchange (Code: ITL.L) in June 2000. Intec is the market leader in intercarrier billing systems and convergent mediation software, and a recent winner of the 2003 Global Billing Award - Best Overall Contribution, and Telestrategies '2003 Mediation Excellence Award'. Intec's portfolio includes: • Inter-mediatETM - convergent mediation solution • InterconnecTTM - intercarrier billing including US CABS and ITU • Inter-activatETM - flow-through provisioning and activation • Inter-contenTTM - end-to-end content revenue management • Intec Dynamic Charging PlatformTM - a real-time pre/post-paid charging interface between the network and the back office Intec's customer base includes, among others, BellSouth, BellSouth Peru, Brazil Telecom, Cable & Wireless, Cesky Telecom (Czech Republic), COLT Telecommunications, EBT (Taiwan), Eircom (Ireland), France Telecom, Hutchison 3G, Maxis (Malaysia), Singtel Optus (Australia), Orange, Telecom Argentina, Telecom Egypt, Telecom Italia, TPSA (Poland), Swisscom, T-Mobile International, Telia (Sweden), Telkom South Africa, Telstra, US Cellular, Westel (Hungary), Vodafone, VimpelCom (Russia) and Verizon. For more information on Intec Telecom Systems, visit the website at http://www.intec-telecom-systems.com. This information is provided by RNS The company news service from the London Stock Exchange ND ACQGUUCABUPWGMU
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