SSE Acquires Neos for £13.4M

LANGLEY, U.K. -- Neos, the UK's premier Ethernet Service Provider, announces today that it has been acquired by Scottish and Southern Energy plc as part of its telecommunications portfolio. Scottish and Southern Energy plc reported 2002 revenues of approximately £4bn, holds an AA-rating and is a FTSE 100 group. The utility operates SSE Telecommunications, a wholesale bandwidth provider with network coverage in Scotland and the South of England. SSE Telecom became a reseller of Neos' Liquid Bandwidth(tm) Ethernet services in 2002 and the two companies have jointly won a number of customers.Under the terms of the deal the combined annual revenues of Neos and SSE Telecommunications will be in excess of £50 million."The market is now demanding a rock solid balance sheet from their service providers as well as faster, simpler, more flexible services," said John Wheeler, CEO, Neos. "This transaction enhances our debt free position such that current and future customers can be assured of service continuity."NeosnetworksScottish and Southern Energy plc