Ecotel Buys Unit

DUSSELDORF, Germany -- ecotel communication ag, Düsseldorf, has yesterday signed an agreement with TiscaliS.p.A., Cagliari/Italy to acquire all shares of Tiscali Nacamar GmbH, Dreieich. Thepurchase price is Euro 18.5 million. The closing of the transaction shall happen withinthe next 4 weeks. The acquisition will be financed via a bank facility and existing cash.Tiscali Nacamar GmbH is a provider of Internet and data services for business customers.

Among the customers are recognised assurance companies, banks, industry enterprises aswell as various radio and broadcast companies. The core business of Tiscali-Nacamar isbased on a secure and reliable interconnection of company sites (VPN). Services range fromthe pure access product to managed services, customized security services as well ashousing / hosting services in the own data centre. Furthermore, Tiscali-Nacamar offers itsmedia customers innovative services such as live or on-demand audio- and videotransmissionsover Internet (Streaming) as well as the integration of payment systems anddigital rights management (DRM).

Tiscali-Nacamar has more than 1.200 business customers with more than 17.000 sites. It hasits own national backbone network as well as a Network Operations Center (NOC) inFrankfurt. For 2006 the B2B business achieved revenues of over Euro 21 million. ecotelacquires the business in partnership with the existing management team. Including thisacquisition ecotel expects to generate consolidated revenues of over Euro 100 million andEBIT of Euro 10 million for the financial year 2007.

"The acquisition of Tiscali-Nacamar enables us to continue our profitable growth strategy inthe area of business customers. We widen our market footprint and strengthen our know howin the area of professional Internet- and data services. We are also happy to have gained acompetent and experienced team. Our customers can now benefit from our full fledgedproduct and service portfolio," says Peter Zils, CEO of ecotel.

The disposal of Tiscali-Nacamar is part of the overall strategy of Tiscali S.p.A. to dispose ofall German activities. In this context Tiscali announced already last week the disposal of theB2C segment to freenet AG. Tiscali Nacamar GmbH houses all of the B2B activities ofTiscali in Germany formally operated by Tiscali Business GmbH.ecotel has been advised in this transaction by Blue Corporate Finance, TreuhandgesellschaftSüdbayern and Nörr Stiefenhofer Lutz.

Ecotel Communication AG