STM Group Contract Win

Avanti Communications Group plc (AIM: AVN), the satellite operator, is pleased to announce the sale of 54Mhz of HYLAS satellite capacity (forward and return path included) for a term of 15 years beginning at launch in 2009 for £8.75m.  The customer, STM Group, a world leading supplier of IP networking solutions via satellite, intends to use the capacity to provide broadband and corporate data services in Europe.  
The transaction prices HYLAS capacity at €1.2m per transponder equivalent (one fortieth of HYLAS capacity) or £900 (€1,323) per Mhz per month which demonstrates that the market values HYLAS capacity at a higher level than expectations at the beginning of the project.  Commenting on the contract win, David Williams, Avanti’s Chief Executive, said: “I am pleased to report that, as expected, we are converting our sales pipeline into a backlog of committed revenues in advance of the launch of HYLAS.  We have growing confidence in our market and in the value of our satellite capacity, which we expect to reinforce with further contract wins soon.”

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