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Qonnectis plc (QTI)

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Thursday 24 February, 2005

Qonnectis plc

Admission to AIM

Qonnectis plc
24 February 2005


                                  QONNECTIS plc
                                        
                                Admission to AIM

                               Dealings Commenced

Qonnectis plc ('Qonnectis' or 'the Company'), the telematics and IT services
provider to the utility markets, announces that dealings have commenced in its
shares following its Admission to AIM.

Prior to admission, the Company raised £1.5million, (£1.2 million after 
expenses) through a placing of 66,666,667 new ordinary shares. The new shares, 
which represent approximately 42.4% of Qonnectis' issued share capital prior to
the placing, have been placed by HB-corporate. Post- the placing, the number of
shares in issue is 157,408,023, giving an approximate market capitalisation of
£5.9 million, based on the closing price on OFEX on 23rd February.

The Directors believe that the Placing and Admission to AIM will allow Qonnectis
to:

   • develop the client base at a faster rate;
   • raise its profile and status with existing and potential customers;
   • provide the Company with an acquisition currency in the form of AIM
     quoted securities;
   • provide suppliers and customers with added confidence;
   • enable the Group to access a wider range of investors; and
   •a ssist in recruiting, retaining and incentivising key employees.

The Group has an experienced management team, a developed product range, patent
protected technology and access to established infrastructure.

Qonnectis' technology allows users to achieve significant cost savings through
more efficient operation of water and energy networks, improved energy
conservation and environmental protection and identification of problems and
irregularities in usage of energy and water. With less than 10% of the world's
estimated 1.3billion utility meters currently automated, the Directors believe
that there are significant opportunities to increase sales. Qonnectis has
already won several orders with well known companies.

Michael Tapia, Chief Executive, Qonnectis plc stated:

'The move to AIM will increase our profile within our target markets, which are
primarily utilities and major business consumers of energy and water. The
additional funds raised will allow us to take on a small number of targeted
personnel, which in turn will enable us to increase our customer base and,
equally importantly, assist our existing customers to roll out Qonnectis'
technology to their clients. This is an exciting opportunity for us to build on
the progress made to date and we thank the shareholders for their support.'

                                                       
ENQUIRIES:

Qonnectis plc                           
Michael Tapia, Chief Executive                              Tel: 020 8893 4766

Bankside Consultants 
Michael Padley/Susan Scott                                  Tel: 020 7444 4140


NOTES TO EDITORS: 

The business of Qonnectis was established in 1998 and supplies modular
telematics technology and IT services to the utility markets which enables them
potentially to achieve:

   • significant cost savings through more efficient operation of water and
     energy utility networks;
   • improved energy conservation and environmental protection; and
   • identification of problems and irregularities in usage of energy and
     water.

The Company's proprietary technology provides fully remote two-way
communications via public wide area networks (WANs), using GSM (digital mobile
telephony), hardwire telephone, satellite or broadband Internet connections.
Qonnectis then aggregates and stores this data remotely, providing the end-user
with customised websites and analytical services via the Internet.

Data can be accessed from any location at any time of the day or night,
eliminating the costly and time-consuming process of manual meter reading and
back-office data entry. Also, data can be read and collected at 15 minute
intervals, allowing users to monitor consumption levels and identify inefficient
usage, billing irregularities or leakages, thereby reducing energy/water
consumption. The technology is capable of instant alerts - informing utilities
and their customers of major problems, such as pipe bursts or gas leaks
immediately, via SMS and email messaging. Last October, Qonnectis was awarded a
patent covering its entire Internet-based communication system, from its
specialist communication devices for automated meter reading to its automated
data centre.

Competition comes predominantly from more traditional technologies. Most meters
are still read manually, although handheld computers are often used to input
data read in this way. Data loggers are alternative devices designed to make
manual meter reading more efficient. Where automated meter reading exists, it is
typically of the ''walk-by'' or ''drive-by'' type, where a meter reader equipped
with a radio-enabled device captures the meter reading outside a property.

With less than 10% of the world's estimated 1.3 billion utility meters currently
automated, the management believes that this represents a significant market
opportunity. As well as selling directly to the utilities, Qonnectis is also
targeting their commercial and industrial customers, where utilities are
expected to focus their initial investment in automated meter reading (AMR)
technology.

Qonnectis already has won several contracts. In December 2003, it secured its
first initial orders from Macao Water, a subsidiary of the French utility group,
Suez Ondeo Lyonnaise des Eaux. In 2004, it entered into agreements with Veolia
Vivendi Generale des Eaux, Scottish Water and Cambridge Water and the National
Health Service. In total, Qonnectis currently provides services to eight
utilities in the UK and overseas, six corporate clients, including First Group,
and four public sector organisations, including the Royal Air Force and Leeds
City Council. Last September saw Qonnectis win its first contract from a large
commercial and industrial user, the Gwent NHS Trust, following extensive trials
of the technology.

Going forward, increasing energy prices, ageing utility infrastructure,
environmental considerations and commercial cost pressures are expected to drive
demand for Qonnectis' products and services. In the near-term, the Company is
looking to expand its direct sales capability and customer support services to
broaden its customer base and assist its existing customers to roll-out the
technology and services. Also, by developing its proven technology to connect to
environmental sensors, Qonnectis recently has launched a range of environmental
solutions, which provide data monitoring for water and gas leaks, flood alerts
and air and water quality.

Management Biographies

Michael Tapia, Founder and Chief Executive (38)
He previously founded Talisman Systems for Thames Water, which he took to
leadership in the European utility metering market. Talisman was acquired by its
largest customer, Severn Trent plc, in 1997. At Qonnectis he has developed from
concept a patented architecture for communicating with machines and sensors via
the Internet. He previously held business and product development roles with FW
Talbot, then a subsidiary of Thames Water plc and supplier of infrastructure
products to the utility industry, Acorn Computer, a UK IT pioneer, Informatica
El Corte Ingles, a leading Spanish IT supplier and Thomson-CSF in France (since
renamed Thales), a supplier of advanced electronics to the defence industry. He
has an MBA and a BA in Economics.

Richard Taylor, Non-executive Chairman (57)
Richard joined the board of Qonnectis Group Limited in May 2000. He has worked
for a number of leading international companies such as GEC, Grand Metropolitan,
Jardine Matheson in Hong Kong and American President Companies in the USA. In
1988, he was a founder member of the group which acquired Harry Ramsden's, the
fish and chip restaurant company in Guiseley, Yorkshire. As Group Finance
Director and Chief Executive of its International Division, he took Harry
Ramsden's public in 1989 and sold it to Granada plc in 1999 as a globally
branded business with outlets throughout the UK and in six international
markets. He has a B.Sc. in Engineering and an MBA from the London Business
School.

Percival Albuquerque, Non-executive Director (42),
Percy joined the board of the Company in May 2004, having assisted in the
development of its national and international sales strategy. He was previously
the Sales and Managing Director of Radix Micro Devices plc and Vice President of
Radix Corporation (USA), a company specialising in mobile computing systems for
utility meter reading. He was responsible for the expansion of Radix's sales
channels in over 50 countries, the development and launch of several innovative
mobile computing products and operational management.


ENDS

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