National Distribution Deal with MTV Telecom

365 Corporation PLC 4 April 2000 365 Corporation plc secures national distribution deal with MTV Telecom. The Business Services division of 365 Corporation plc ('365') announces that it has signed a Heads of Agreement to launch Island6 Ltd ('Island6'), a new joint venture company with partner MTV Telecom (Distribution) plc ('MTV Telecom'). Island6 will provide class-leading telecoms and web solutions to end-user small and medium-sized enterprises ('SMEs') via the MTV Telecom dealer network. The new company will benefit from 365's expertise in providing an extensive range of convergent applications, including fixed line voice and data, mobile telephone and internet services, to the SME market. To date, 365's business services expansion strategy has focused on direct selling and the formation of a limited number of equity joint ventures with established UK telephone systems suppliers in specific geographical areas. The creation of Island6 will provide 365 with a national distribution capability for the first time, through exclusive access to MTV Telecom's channel of over 2000 active dealers across the UK. MTV Telecom, an independent company, is a leading national distributor of telephone systems and related hardware, based in Egham, Surrey. The company was formed in 1989 and represents a number of major telecom manufacturers and integrators, including Bosch and Lucent. Commenting on the deal, Mark Jones, Managing Director of 365's Business Services division, said: 'A crucial element of 365's expansion plans in the SME market is the formation of strategic distribution partnerships with major operators, such as MTV. This joint venture will provide us with the opportunity to increase significantly our existing dealer base from the current 20 and generate revenues from SME end-users under the Island6 brand, including through an increasing range of business Internet products. We have been looking to develop a national dealer channel for some time and the Island6 deal delivers an immediate solution.' Martin Hatcher, Chief Executive Officer of MTV Telecom, said: 'MTV Telecom has been searching for the right partner to help us offer bundled telecommunication services for some time. 365's experience and innovation in servicing the SME market, together with their proven success of working with telecoms dealers were key factors in the decision to form the Island6 joint venture. We are very excited about the prospects.' Enquiries: 365 Corporation plc Tel: 01442 28 33 00 Martin Turner, Finance Director Mark Jones, Managing Director 365 Business Services www.365corp.com Financial Dynamics Tel: 0171 831 3113 Giles Sanderson Fiona Meiklejohn NOTES FOR EDITORS 365 Corporation plc CURRENT SERVICE AND CONTENT OFFERINGS Business The Business Division provides a 'one stop shop' of telecommunication services and Internet applications to small and medium sized enterprises in the UK, France and Ireland. 365 currently provides fixed line voice and data access, telephone systems, mobiles, Internet access and related services. In order to work towards national coverage, 365 has formed equity joint ventures with 12 telecom systems dealers across the UK. Under these arrangements, 365 contributes its expertise and access to its customer service and billing infrastructure, while the dealer contributes local sales and marketing expertise. The existing customer base of the joint venture partners provides the initial target for 365's marketing efforts. On 29 February 2000, 365 acquired the entire issued capital of Fenfones Communications Limited, an established telephone systems supplier located in Newmarket serving the SME market. Total consideration paid was £4,520,000. On the same day, 365 acquired the 50% shareholding in Datacom Networks Limited (a joint venture) owned by Fenfones for £500,000. The formation of equity joint ventures with telecom system dealers, and acquisition of Fenfones, underlines 365's strategy of securing distribution and long-term customer retention though partnership with, or ownership of, the telephone system supply channel. The telephone system represents the key product around which value-added telecommunication and internet services can be developed and sold to SME customers. Consumer Sport Football - www.football365.com (English), www.futbol365.com (Spanish), www.football365.fr (French), www.talkfootball365.com (Football content on a cross platform basis via TalkFootball365, a telephone and Internet service). www.eurofinals365.com (a dedicated service, in five languages, covering the European Championships 2000). Cricket - www.cricinfo365.com (daily e-mail publication in joint venture with CricInfo), www.cricketline.com (a leading site for International cricket, complete scorecards of every Test match ever played). Rugby - www.rugby365.com (produced in four language versions - English, French, Spanish, Afrikaans), www.rugbyrugby.com (North American rugby website), www.planet-rugby.com (a market leading online rugby resource including breaking news, unique statistics). Racetips: www.racetips.com (a site dedicated to Horse Racing giving the inside track on news, form and the horses to follow). Formula 1: www.planet-f1.com (website featuring news, features and a searchable archive of every race in F1 history). Sports Overview: www.sportszine.co.uk (complete guide to sport on the Internet through a searchable database of over 40,000 individually reviewed websites), www.sportonair.com (UK's first dedicated sports audio website with hourly news, features and interviews). Entertainment Music - www.music365.com (reviews of albums and singles, interviews with artists and personalities and topical stories, on-line chat forum, on-line shopping facilities for concert tickets, CDs and videos). Competitions - www.win365.co.uk (a cross-platform competition based product). Games - www.planet-trivia.com (a network of live, multiplayer trivia games where users can compete in real time against anyone else in the world on a variety of topics including television, education, history, entertainment and sport and win prizes). 365Television - The first production, a documentary on boxer Mike Tyson's UK fight, was commissioned by BBC Choice and recently aired on BBC Choice and BBC2. Lifestyle Companionship - www.personals365.com (an on-line companionship product), www.theswitch.co.uk (a multi-platform product using the web and telephone for chat). Gardening - www.gardening365.com Advisory services - telephone-based services to users. 365 provides telephone lines and systems and Infogenie procures the advisory services, currently for legal services and veterinary services.

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