Acquisition & Trading Update

Envesta Telecom PLC
19 January 2005

Embargoed until: 07.00 a.m. 19 January 2005



ENVESTA TELECOM GROUP ACQUIRES CONTRACT AND CUSTOMER BASE FROM THE AIRTIME GROUP
                                    LIMITED

      FIRST HALF TRADING SHOWS STRONG GROWTH IN REVENUE AND PROFITABILITY


Envesta Telecom plc ('Envesta Telecom' or the 'Company') the AIM quoted premium
international telephony provider today announces that its subsidiary Seven
Telecom, yesterday completed the acquisition of customer contracts from The
Airtime Group Limited which trades in the UK as World Telecom, a subsidiary of
CANISP Plc.

The customer contracts acquired currently generate revenues in excess of
£1million per annum at significant gross margin and the expected consideration,
which is payable in cash, will be in the order of £340,000 dependant on
performance of the customer contracts in the first 6 months following the
acquisition.

The acquisition brings to the Company significant multinational corporate
customers from a number of industry sectors, including banking and finance.
Customers will be migrated to the Seven Telecom infrastructure during a
six-month migration plan.

Commenting on the acquisition, Kevin Jauncey, Executive Chairman of Envesta
Telecom stated 'This is an exciting deal for Envesta Telecom as it brings
additional substantial gross margin with little or no additional operating cost
as services will be run using existing systems and infrastructure. It also
brings a customer base of significant value and profile which will complement
our existing wholesale business.'


Trading Update

Envesta is pleased to announce that trading for the six months ended 31st
December 2004, will show significant improvement on the same period last year.

The Company has experienced continued high growth throughout the period, in
particular during Christmas and New Year, achieving record levels of revenue for
December. This has contributed to an increase in revenue of more than 70% for
the first half compared to the same period last year. More importantly, gross
margin contribution is up over 120%, reflecting the Company's concentration on
higher quality and higher value business streams. This greater margin
contribution combined with an increase in the efficiency of its specialist
telephony infrastructure has resulted in the Company experiencing significant
net profit growth, as operating costs have not increased in line with revenues.

Un-audited like-for-like comparisons show that revenue for the period was in
excess of £9m compared to £5.24m for the same period last year.

Kevin Jauncey, commented, 'In addition to the acquisition, we plan to build on
the continuing good performance in the second half and the revised strategic
roadmap for Envesta, which includes a significant product launch in early
February. The new product offering will introduce a mass market service that
further maximises utilisation of our infrastructure by bringing on board more
traffic at times of the day when capacity is spare. It also introduces a retail
revenue stream to complement the existing wholesale business.'

'Details of our revised strategy will be outlined in our interim results in
March. In the meantime the Company will continue to explore alternatives to
organic growth to further build the business.'


For further information please contact:

Kevin Jauncey, Chairman
Kevin McGovern, Finance Director
Envesta Telecom Plc
Tel: [phone]
[e-mail]
[e-mail]

Simon Hudson/Katy Pratt
Tavistock Communications
Tel: [phone]
[e-mail]


Notes to Editors

Envesta Telecom plc is an AIM listed premium quality alternative telephony
provider specialising in the provision of high quality international telephony
connections through its wholly owned subsidiary Seven Telecom. With call quality
in the UK now taken for granted, the same quality is expected when routing calls
around the world, especially where more complex services are required.

Headquartered in London, Envesta owns state of the art infrastructure
interconnected with worldwide Tier One carriers such as British Telecom and T
Systems. Significant capital investment in Voice over Internet Protocol,
('VoIP') technology where appropriate, has expanded Envesta's technical
capabilities, opening up new routes to Africa and Asia at greater margins to the
Company. This, along with some of the most sophisticated monitoring capability
in the industry, means that Seven Telecom is able to closely monitor and control
the business to achieve maximum efficiency and effectiveness.



                      This information is provided by RNS
            The company news service from the London Stock Exchange