Teleunit S.P.A.

August 08, 2005 03:39 ET

Teleunit Acquires 50% of Pro Advertising to Further Strengthen its Premium Access Numbers Division

LONDON, UNITED KINGDOM--(CCNMatthews - Aug. 8, 2005) - Teleunit S.p.A, (AIM:TLU) a provider of fixed line telephony, wireless broadband, international calling cards, premium access numbers, content for mobile and wholesale services in Italy, announces the acquisition of a 50% equity stake in Pro Advertising S.r.l. for EUR 4 million.

Pro Advertising, a customer of Teleunit since 2002, is a profitable privately owned provider of Internet content. Pro Advertising produced revenue and normalized EBIT of EUR 13 million and EUR 0.8 million respectively in 2004.

The majority of Pro Advertising's content comprises student notes, recipes, travel advice and sports news. Under the deal, Teleunit will continue to supply a premium access number to Pro Advertising who will in turn produce the content and allocate the number to a webmaster. The webmaster then advertises Pro Advertising's content on the Internet to attract subscribers. Fees procured from subscribers will be split between Teleunit, Telecom Italia, Pro Advertising and the webmaster.

The consideration of EUR 4 million will be financed through debt and repayable in 8 six-monthly installments starting in January 2006 at a rate of 3.75%.

Francesco Cimica, Chief Executive Officer, commented: "The acquisition of Pro Advertising will further strengthen Teleunit's position in the premium access numbers market. There is great synergy between the two businesses and we expect the acquisition to be earnings enhancing in the current financial year.

"Pro Advertising is one of the top five providers of Internet content in Italy by market share and we believe there is tremendous scope for cross-fertilisation of both companies' products and services. The acquisition will significantly enhance Teleunit's existing premium rate number division and enable the possibility of new complementary services and product lines."

For further information:

Teleunit S.p.A
Francesco Cimica, Chief Executive Tel: +39 075 528 3939

Daniel Stewart
Tom Jenkins / Ruari McGirr Tel: +44 (0) 207 374 6789

Media enquiries:

Heather Salmond / Chris Lane Tel: +44 (0) 20 7398 7700

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