Marconi Resolves Ultramast Flap

Company gets capital back on old 3G installation venture gone awry

December 19, 2002

1 Min Read

LONDON -- Marconi plc (MONI) today announced that MarconiCorporation plc has reached agreement with RT Group plc (in members' voluntaryliquidation), and its subsidiary RT Group Telecom Services Limited, on a returnof capital from Ultramast, the joint venture set up in December 2000. Subject tocompletion of the reduction of capital, the agreement provides for bothcompanies to waive all outstanding litigation relating to the joint venture. Oncompletion, RT Group will assume full control of all of Ultramast.

Upon completion of the reduction of capital, which is expected in February 2003,Marconi should receive approximately £45 million in cash, of which approximately£20 million was paid into court pending the outcome of a lawsuit between theparties in August 2002. The agreement proposes that approximately £8 millioncash will remain in Ultramast to finance ongoing operations following completionof the reduction of capital.

Marconi plc

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