Pipex Buys Toucan

STOKE MANDEVILLE, U.K. -- Pipex Communications, a major provider of integrated telecommunications and Internet solutions including broadband, voice, domain name registrations and hosting, announces an agreement to acquire the UK business of Toucan, the UK telecommunications provider, for a consideration of £24m from IDT Telecom. The consideration will be satisfied by £20m in cash and £4m in stock.

Currently, Toucan provides voice, mobile and Broadband Services to its 185,000 customers. With 57% taking more than 2 services, Toucan delivers an average ARPU of £23. Following the acquisition of Toucan and Bulldog, Pipex now has a broadband and voice customer base of 1.14m of which over 570,000 take broadband.

Rationale for acquisition:

Peter Dubens, Chairman of Pipex, said, "The acquisition of Toucan brings Pipex further scale across broadband and voice and we welcome Toucan customers to the Group. Toucan maintains very high levels of customer service in Ireland which we intend to replicate across the Group as a whole.

"Importantly, this acquisition will enable Pipex to provide triple play in the UK market by the end of 2007. Broadband, voice and mobile will be bundled and offered to our entire base in the coming months."

Pipex Communications plc