ecotel communication ag — M&A Activity 2007

Feb 5, 2007

News Details

Corporate | 5 February 2007 08:24

ecotel acquires Tiscali’s B2B business in Germany for Euro 18.5 millionEcotel Communication AG:

ecotel communication ag / Acquisition

Corporate news transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Transparency disclosure pursuant to section 17 para. 2 of the General
Business Terms for OTC trading at FWB, the Frankfurt Stock Exchange:

Düsseldorf, February 5 2007

ecotel communication ag, Düsseldorf, has yesterday signed an agreement with
Tiscali S.p.A., Cagliari/Italy to acquire all shares of Tiscali Nacamar
GmbH, Dreieich. The purchase price is Euro 18.5 million. The closing of the
transaction shall happen within the 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 as well as various radio and broadcast
companies. The core business of Tiscali-Nacamar is based on a secure and
reliable interconnection of company sites (VPN). Services range from the
pure access product to managed services, customized security services as
well as housing / hosting services in the own data centre. Furthermore,
Tiscali-Nacamar offers its media customers innovative services such as live
or on-demand audio- and video-transmissions over Internet (Streaming) as
well as the integration of payment systems and digital rights management
(DRM).

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

'The acquisition of Tiscali-Nacamar enables us to continue our profitable
growth strategy in the area of business customers. We widen our market
footprint and strengthen our know how in the area of professional Internet-
and data services. We are also happy to have gained a competent and
experienced team. Our customers can now benefit from our full fledged
product 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 of all German activities. In this context Tiscali
announced already last week the disposal of the B2C segment to freenet AG.
Tiscali Nacamar GmbH houses all of the B2B activities of Tiscali in Germany
formally operated by Tiscali Business GmbH.

ecotel has been advised in this transaction by Blue Corporate Finance,
Treuhandgesellschaft Südbayern and Nörr Stiefenhofer Lutz.

About ecotel communication ag (WKN 585 434; Ticker E4C):

ecotel is a telecommunications service provider which was founded in 1998
immediately after the liberalization of the German telco market. In its
core division 'Business Customers' the company provides voice, data-,
value-added services as well as access lines to small and medium-sized
enterprises. It has more than 35,000 corporate customers.

In its second 'Resale' division ecotel provides telecoms carrier services
to other telecoms operators and non-industry distributors as well as
wholesale services. Own operating support systems developed in-house and
modern switching technology constitute the interface between the two
divisions and enable a cost efficient bundling of services and solutions
e.g. IP services incl. VoIP (Internet telephony).

ecotel is headquartered in Düsseldorf. At present, the company has 150
employees. It is among the fastest growing technology companies and was
ranked 8th and 38th in 2005 and 2006 in the 'Deloitte Technology Fast 50'
competition.

Please note:

This publication does not constitute an offer for the sale of shares in the
company or a solicitation of an offer for the purchase of shares in the
company. Such offer is exclusively be made through and on the basis of a
securities prospectus. This document must not be distributed outside of
Germany, in particular not in the United States of America, Canada,
Australia and Japan.

Wirtschafts- und Finanzmedien
Annette Drescher (Assistentin des Vorstandes)
Tel.: 0211-55 007-740
Fax: 0211-55 007 5 740
Email: presse@ecotel.de

Fachmedien
Stefanie Toloszycki
Tel.: 0211-55 007-310
Fax: 0211-55 007 5 310
Email: presse@ecotel.de

Further informations: www.ecotel.de.

DGAP 05.02.2007

Language: English
Issuer: ecotel communication ag
Prinzenallee 9-11
40549 Düsseldorf Deutschland
Phone: +49 (0)211 55 00 7300
Fax: +49 (0)211 55 00 75300
E-mail: achim.theis@ecotel.de
WWW: www.ecotel.de
ISIN: DE0005854343
WKN: 585434
Indices:
Listed: Freiverkehr in Berlin-Bremen, München, Düsseldorf, Stuttgart;
Entry Standard in Frankfurt

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