186k

4th May 2007

MARROCCO'S 186k Acquires NetServices Broadband Business

Dominic Marrocco, Internet entrepreneur and owner of 186k Limited, has today finalised an all cash deal with NetServices Plc for its volume broadband wholesale business, which will see the rapidly growing 186k take on 25,000 end user lines managed through dedicated resellers.

This deal comes at a time as NetServices plc has stated that it wishes to focus its efforts on the B2B convergence business.

Dominic Marrocco, of 186k, said: "We are delighted to work with NetServices on acquiring this business unit and crystallises growth in 186k's partner channel with new added resource and infrastructure"

The connections transferred to 186k represented approximately £4.5m of NetServices revenues for the year ended 31 August 2006. The deal also includes an ongoing partnership with NetServices will retain ownership of a further 20 reseller contracts, services will be managed by 186k.

"The partner channels represent a huge opportunity for us to gain a big share of the available market and this acquisition puts that strategy firmly into top gear, putting us instantly ahead of our competitors," continued Marrocco.

Mark Vickers, CEO of NetServices plc, said: "This deal holds many advantages for both companies. I am confident in 186K's ability to deliver a market leading service and am sure their strategy to take on the reseller market will be highly profitable, but it also allows us to dedicate resources to our core objectives, allowing us to drive the company forward in the converged B2B voice and data markets."

This announcement follows recent news of Iomart plc acquiring 51% of 186k's data centre subsidiary "Easyspace Datacentres Limited" in a £25M deal.