LONDON -- telent plc (LSE: TLNT) has signed and completed an agreement for the sale of its payphones business to Teknowledge Group Ltd. Teknowledge will purchase substantially all of the assets, liabilities, contracts and intellectual property of the payphones business formerly known as Marconi Interactive Systems or MIS. The business, which is based in Chorley, Lancashire is focused on the design, manufacture and repair of payphone and multi-media terminals.

Teknowledge will pay an initial consideration of £250,000 in cash and an additional deferred sum over the coming 12 months, of approximately £1.279 million in cash, being the estimated value of the net assets at the completion date. In the 12 months to 31 March 2005 the business being sold made an operating loss of £2.018 million. The cash received by telent will be retained in the business. Thirty-nine telent employees will transfer to Teknowledge under TUPE regulations.

telent (formerly Marconi Corporation plc) announced in March 2005 the phased closure of its MIS payphones business and now reports the MIS results within its legacy products and services.

telent plc (London: TLNT)