Acquisition

Telecom Plus PLC
13 June 2002


                      Telecom plus makes first acquisition

           by purchasing Telecommunications Management Ltd for £4.9m



The board of Telecom plus plc is pleased to announce the acquisition of
Telecommunications Management Limited ('TML') for a total consideration (subject
to adjustment) of £4.9 million payable in cash.

Telecom plus is the UK's leading low-cost multi-utility supplier (gas,
electricity, telephony, internet) with more than 100,000 customers.  It recently
reported record pre-tax profits of over £4 million (up by 61%) for the year
ending 31 March 2002.

TML is a supplier of fixed and mobile telephony with around 6,500 smaller and
medium-sized enterprise (SME) customers.  Founded in 1998, it is based in West
Sussex and employs 29 staff.  In the year to 30 June 2001, the latest date to
which it has prepared audited accounts, TML generated a pre-tax loss of £1.7
million on turnover of £13.4 million.  As at that date, it had net assets of
£0.6 million excluding inter-company liabilities of £5.4 million.

Telecom plus has purchased the share capital in TML for £2 and has paid £4.35
million in cash on completion towards satisfaction of the inter-company
liabilities.  Deferred consideration of £550,000 in cash is payable on 31
January 2003 subject to a possible net asset value adjustment following
preparation of the audited accounts of TML for the period ended 31 May 2002.

The value of these Net Assets at completion is estimated to be £1.15 million.
Telecom plus has also agreed to pay for certain tax losses within TML. The
entirety of the consideration is being met from the existing cash resources and
bank facilities of Telecom plus.

The TML acquisition is the first made by Telecom plus, which has rapidly grown
its customer and distributor base organically.

Commenting on the acquisition, Peter Nutting, Chairman, said:

'TML is an excellent fit for Telecom plus, providing a complementary
distribution channel and significantly increasing our exposure to the SME
market.  This is an area in which TML has built a very strong brand presence and
we intend to continue operating this business under the TML brand.  There is
considerable scope to improve the profitability of TML through integration
within the existing infrastructure of Telecom plus, and by taking advantage of
the greater buying power for telecommunications services which Telecom plus
enjoys.

'In addition, the acquisition brings with it the opportunity to enhance the
mobile services currently offered by Telecom plus through our Virtual Network
licence with T-mobile, by utilising the service provider licences held by TML
with Vodafone and O2 (previously Cellnet). As a result, we will now be able to
provide our customers with service on three of the four UK wireless networks.'

For further information, please contact:

Telecom plus plc
Charles Wigoder                        020 8955 5000

Gresham PR
Neil Boom/ Vimal Pattni                020 7329 7555

KBC Peel Hunt Ltd.
Adam Hart                              020 7418 8900



Notes to Editor

Telecom plus plc was incorporated in 1996 and began operations in 1997 providing
a unique range of low-cost telephony services to the residential and Small
Office Home Office (SoHo) markets. The company's shares are traded on the
Official List of the London Stock Exchange.

Telecom plus delivers significant savings to its customers on a broad range of
essential household services, compared with the prices typically charged by the
former monopoly utility companies (such as BT or British Gas).  It uses the
collective buying power generated from many individual small users to negotiate
bulk volume discounts with major suppliers, sharing the benefit with its
customers.

Unlike most utility companies, Telecom plus does not own its fixed or mobile
telephone networks, or any electricity or gas infrastructure.  Instead, it
operates its own virtual network, where Telecom plus handles the customer
service, billing and marketing to new and existing customers under its Service
plus, Mobile plus, Energy plus and Go-plus brands.

Running virtual networks gives Telecom plus two distinct advantages.  It does
not have to invest large capital sums in the installation of costly
infrastructure, and it is able to buy discounted capacity from suppliers such as
Energis or T-Mobile for resale under its various brands.





                      This information is provided by RNS
            The company news service from the London Stock Exchange