Internet Technology - Re Infrastructure Overhaul

RNS No 4636w
INTERNET TECHNOLGY GROUP PLC
2nd April 1998

INTERNET TECHNOLOGY GROUP PLC

ITG Overhauls Infrastructure and Reduces Costs

Internet Technology Group plc ("ITG"), through its subsidiaries,
Global Internet and GX Networks, is now the UK's third largest
Internet Service Provider ("ISP").

ITG has embarked upon a major programme to improve performance and
reduce costs in its two principal operating subsidiaries, Global
Internet and GX Networks.  As part of the first phase of a major
infrastructure upgrade, ITG has acquired a 155MB transatlantic
connection on a 25 year lease.

As a result of the acquisition, ITG is now, in bandwidth terms,
one of the largest European ISPs.  Although the new connection is
more than six times ITG's current requirements, the financing
structure of the contract provides savings over current bandwidth
expenditure and fixes these prices into the future.  The agreement
also gives ITG the ability to extend its portfolio of services
into a sector that was previously the exclusive preserve of very
large telecommunications companies.

The new capacity, which will be operational from mid-May, will
have a limited impact in the last five months of ITG's current
financial year.  However, by effectively reducing bandwidth cost
per customer, significant benefits will accrue thereafter.

ITG Chief Executive, Laurence Blackall, said:

"Bandwidth is critical in this business, representing our biggest
expense after payroll.  It is natural that this upgrade is the
first phase in a complete overhaul of our infrastructure.  By
securing this new capacity, we are able to promise quality of
service to our customers at a time when customer retention is
critical to our ambitious growth plans."

Nick Smith, Principal Consultant, KPMG Information, Communication
& Entertainment, commented:

"Smarter Internet users, corporate and consumer, increasingly
understand the importance of using ISPs capable of delivering high
service levels, bandwidth capacity and appropriate connectivity.
This makes securing and managing bandwidth cost effectively of
prime importance to all ISPs."

Enquiries:
Internet Technology Group plc  Tel:0181 957 1180
Laurence Blackall              Email: lb@itg.net.uk
Richard Brocksom               Email: rb@itg.net.uk

College Hill                   Tel: 0171 457 2020
Nicola Weiner                  Email: nicola@collegehill.co.uk
Archie Berens                  Email: archie@collegehill.co.uk

END

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