ZURICH -- Q2 FINANCIAL RESULTS(1) (compared to Q2 2006)

The Group’s financial position continues to be strong, with cash and cash equivalents of €199.1m and net debt of €63.1m at the end of the quarter.

Rakesh Bhasin, Chief Executive Officer, said:

"I am pleased to report another quarter of operational progress and improved profitability. COLT has now been profitable for four consecutive quarters.

"Data revenues increased to more than 50% of total revenue, with growth in every geography and with double digit growth in most markets. Data bookings continued to grow and deferred Data revenues increased by €12.4m to €174.8m. Headline revenues fell reflecting a drop in low margin Carrier Voice and Carrier Pre-Select (CPS) voice revenues.

"We have continued to invest in our managed services capabilities, opening new data centres in Copenhagen and in Lisbon and announcing a major new data centre for London. This will bring the total number of fully integrated COLT data centres across Europe to 17.

"Operationally, we continue to move forward. We have moved to a more customer centric way of working, focused around three new business divisions; service delivery and service assurance continued to improve; and our next generation network investment has gathered pace."

Colt Technology Services Group Ltd