Telecom Acquisitions

365 Corporation PLC
5 October 2000

    365 CORPORATION PLC CONTINUES THE RAPID GROWTH OF ITS BUSINESS DIVISION
                      THROUGH THREE TELECOMS ACQUISITIONS
                FOR AN AGGREGATE CONSIDERATION OF UP TO £4.62m.
   
   365 Corporation plc, the digital media and communications company, today
   announces that it has acquired the whole of the share capital of
   Systematic Telecoms Limited (Systematic) for a consideration of up to
   £2.72m payable in cash and shares. It has also acquired the assets of the
   Essential Voice and Data partnership (EVD), and increased to 100% its
   holding of Essential Network Solutions Limited (ENS) for a consideration
   of up to £1.9 million payable in cash and shares.

   Systematic
   
   Based in Uckfield, Sussex, Systematic is a long established supplier and
   maintainer of telephone systems whose unaudited accounts for the ten
   months to 31st August 2000 show a turnover of £2,045,000 and a net profit
   of £246,577. The company will add considerable strength to the hardware
   capabilities of the Business Services Division, whilst providing a large
   and established customer base to which 365 can sell additional products
   and services.  The acquisition will further extend the large geographic
   coverage of 365's UK operations
   
   The initial consideration for Systematic is to be satisfied by the payment
   of £1.3m in cash and the issue of 350,000 new 365 ordinary shares of 0.25p
   each. Further consideration of up to a total of 350,000 ordinary shares of
   0.25p each may be payable dependent on the share price of 365 in 12 and 18
   months time respectively.   In addition, the vendors may earn up to a
   further £1m of consideration if the pre-tax profits of Systematic exceed
   specified targets for each of the years 2001 and 2002.   60% of this
   additional consideration is payable by the issue of shares in 365
   Corporation plc and the remainder in cash.

   As part of the acquisition, the founders of Systematic, Michael Carroll
   and John Penny, will be joining 365's subsidiary, Symphony Telecom, under
   new long-term service agreements.

   The audited accounts for Systematic for the year ended 31 October 1999,
   showed net assets of £2,884 and net profit of £3,749 before tax.

   Essential
   
   Essential Network Solutions Limited ('ENS') is a joint venture company
   owned by its senior management (50%) and 365's subsidiary, Symphony
   Telecom Limited (50%) whilst Essential Voice and Data ('EVD') is a
   partnership operated by its founders, John Donnohoe and Clifford Smith.
   EVD's turnover for the 12 months to 31 July 1999 was £948,508 and that of
   ENS for the 12 months to 31 March 2000 was £152,455. The companies provide
   a wide range of fixed-line voice and data services to businesses and
   consumers in the UK.
   
   The initial consideration for ENS and EVD will be satisfied by the issue
   of 625,000 new 365 ordinary shares of 0.25p and the payment of £700,000 in
   cash. Further consideration of up to a total of 625,000 ordinary shares of
   0.25p each may be payable dependent on the share price of 365 in 12 and 18
   months time respectively. In addition, the vendors may earn up to a
   further £450,000 of consideration dependent upon growth in monthly revenue
   the vendors achieve as employees of 365. This additional consideration
   is payable as either cash or shares or a combination of the two.
   
   EVD's co-founders, John Donohoe and Clifford Smith and the director of
   ENS, Trevor Weare, are to enter into long term service agreements with
   Symphony Telecom Limited to ensure the effective integration and
   development of EVD and ENS.
   
   Commenting on the acquisitions, Dan Thompson, Chief Executive Officer of
   365, said:
   
   'We are delighted with the acquisition of Systematic and their established
   customer base. This will further extend our geographic coverage in the
   South East and will allow us to offer additional products and services to
   Systematic's existing and future customers.'
   
   'We are also pleased and excited to welcome Essential into the 365 Group.
   Their high end CTI (Computer Telephony Integration) expertise will be
   invaluable to our Business Division's ability to meet our customer's ever
   growing requirements for integrated voice and data solutions.'
   
   'Both agreements underpin our strategy to take full control of those key
   companies with which we have had strong alliances in the past.'
   
    Enquiries:
   
   365 Corporation plc                           Tel: [phone]
   Martin Turner, Finance Director               www.365corp.com
   
   Financial Dynamics                            Tel: [phone]
   Fiona Meiklejohn                              [e-mail]
   Ben Atwell                                    [e-mail]

   NOTES FOR EDITORS
   365 Corporation plc (www.365corp.com)

    Consumer Division
    365's consumer division provides high quality digital content across
    three different categories - lifestyle, sport and entertainment. Each of
    these in turn, have several different content services, which are
    accessible to consumers on a multi platform basis (Internet, mobile
    phone, fixed line, TV, PDA etc).

    my365.com - www.my365.com, a one stop shop which reflects the best of the
    passion centers and provides a consumer hub which readers can personalize
    according to their interests. It also offers network-wide communication
    services and products.

    *  Sport
    Football - www.football365.com (English), www.futbol365.com (Spanish),
    www.football365.fr (French). www.soccer365.com (North American soccer
    biased content), international.football365.com - a dedicated service,
    covering international football.

    Cricket - www.cricketline.com (a leading site for International cricket),
    www.cricinfo365.com (daily e-mail publication in joint venture with
    CricInfo)

    Rugby - www.planet-rugby.com, a market leading online rugby resource
    including breaking news and unique statistics, www.rugby365.com (produced
    in four language versions - English, French, Spanish, Afrikaans),
    www.rugbyrugby.com (North American rugby website).

    Racetips - www.racetips365.com, a site dedicated to Horse Racing giving
    the inside track on news, form and the horses to follow).

    Formula - www.planet-f1.com (English) www.francais planet-f1.com
    (French), www.deutsch.planet-f1.com (Dutch), www.espanol.planet-f1.com,
    (Spanish),italiano.planet-f1.com (Italian), 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, www.livesport.com -
    multi-sport website.

    *  Entertainment
    Music - www.music365.com (English), www.music365.fr (French).- 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.trivia365.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 - www365television.com, 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.
    Future - www.future365.com - a site dedicated to covering the past,
    present and future
    Gardening - www.gardening365.com
    Gay - www.gay365.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.

    Business Division (www.symphony.com)

    365 acquired its Business Division as part of the purchase of Symphony
    Telecommunications plc (Symphony Telecom) in February 1999.  Its focus is
    to act as a 'one-stop-shop' and single point of contact for all of its
    customers' communications requirements.  Increasingly, this includes the
    provision of internet-related applications and solutions.  With its head
    offices in Hemel Hempstead, England, it continues to trade under the
    Symphony brand.

    www.business365.co.uk - designed to give SME's within the UK quick and
    easy access to the facts and communication services they need to help run
    their business.  Business365 draws on Symphony's resources to provide
    independent, interactive business solutions.

    Telephone systems - 365 sells and maintains a range of telephone systems
    and related solutions.

    Fixed-line resale - 365 provides branded fixed line telecommunications
    services and choses to route traffic over a selection of blue chip
    carriers including Energis and Viatel.  It also provides non-geographic
    numbers (premium, national and local rates) and routes ISDN traffic

    Mobiles - 365 sells mobile handsets, airtime and ongoing support to SME's
    via the Cellnet or Vodafone mobile networks.

    Internet services - 365's internet products include network access
    devices, ISDN-2-dial-up, web hosting and web design services