Acquisition

RNS Number:6349P
Intec Telecom Systems PLC
11 September 2003


Intec Telecom Systems PLC - Acquisition of Digiquant A/S of Denmark


*    Intec acquires entire business, including a powerful data services-oriented
     OSS/BSS product set, worldwide customer base and experienced management and
     staff teams



London, 11 September 2003 - The Board of Intec Telecom Systems PLC ("Intec" or 
"the Company"), a leading provider of telecoms Operations Support Systems 
("OSS"), is pleased to announce that it has signed an agreement to acquire 
Danish company Digiquant A/S, a global supplier of OSS/BSS (Business Support 
Systems) software for next-generation data services in wireless and fixed-line 
service providers. The consideration for the entire Digiquant group will be 
satisfied through the issue of approximately 15.96 millon new Intec shares worth
Euro9.545 million (#6.7 million) plus the repayment of Euro1 million (#0.7 million) of
outstanding loans.

Digiquant brings to Intec strong synergies with its client base and product
offering. Its award-winning IMS product line is used by more than 50 service
providers worldwide, including companies such as Telefonica, Tiscali, Telecom
Italia, Belgacom, Telekom Malaysia, iBasis and Omnitel Vodafone. IMS allows
carriers, service providers, businesses and other users of data networks to
manage and bill for advanced, next-generation services. Intec believes that the
capabilities of the Digiquant product set are highly complementary to its own
OSS products which address key operational requirements for large telecoms
operators in both traditional and next-generation markets. Digiquant currently
has 128 staff based in Roskilde (Denmark), Atlanta, Rome, Singapore and the UK,
plus a number of international sales offices.

Digiquant's present owners include Cisco, General Atlantic Partners, Index
Ventures, Vertex Management, and Digiquant management and staff. Digiquant
reported total revenues of Euro16.6 million (#10.4 million) in 2002 and net assets
of Euro3.5 million (#2.3 million). 2002 loss before interest, tax, depreciation and
amortisation was Euro7.4 million (#4.6 million) and loss after tax was Euro12.4
million (#7.8 million) after restructuring charges of Euro2.0 million (#1.3
million). Digiquant has continued its restructuring program during the early
part of 2003.

Intec does not expect the acquisition to have a material impact on its current
business year, which ends on 30 September 2003. In 2002 Digiquant generated 60%
of its revenues in EMEA, 21% in the Americas, and 19% in Asia-Pacific. Digiquant
has over 50 customers representing 72 installed systems in 32 countries.


"Digiquant is a well-managed business, with an outstanding product, that has
been constrained in its ability to move forwards in the current market due to a
lack of critical mass," said Intec's Executive Chairman, Mike Frayne. "Taking
into account its present revenue stream, and operating efficiencies that we can
create in the enlarged business, we believe that this is an exceptionally
attractive deal that can contribute positively to Intec's existing capabilities
in the next-generation services market and thus the strength of the business
going forward."


"Acquiring Digiquant is an exciting step for Intec," added Chief Executive Kevin
Adams. "As well as a solid contribution to future revenues and earnings we
expect that Digiquant will substantially expand our technical capabilities into
some important new markets. Our combined OSS/BSS offering will have unmatched
functionality for communications companies, particularly those operating in
wireless and next generation data services."


"We are very pleased to have secured the future of the Digiquant business and
product line by becoming part of a successful, global OSS company like Intec,"
said Digiquant founder and CTO, Hasse Rasmussen. "Combining Digiquant's
technology and Intec's global distribution capabilities opens many doors for
both companies, as well as allowing Digiquant customers to be fully confident in
the future of the product set."


Digiquant's OSS/BSS product set allows carriers and other businesses, including
service providers and non-telecom end-user enterprises that operate data
networks or services, to manage numerous functions, from initial service
provisioning and activation through to customer billing and partner management.
The product is used within a wide range of organisations, including GSM
operators, major ISPs, traditional carriers and end-user companies.





For further information:


Kevin Adams, CEO

Intec Telecom Systems PLC

[phone]

[e-mail]


Andrew Rodaway

Intec Telecom Systems PLC

[phone]

[e-mail]


Cubitt Consulting

Fergus Wylie/Sarah Brydon

[phone]

[e-mail]



About Intec Telecom Systems



Intec Telecom Systems is an award-winning worldwide Operations Support Systems
("OSS") vendor for fixed, mobile and next-generation networks (ie. WLAN, 3G and
IP), with more than 340 customers for its products worldwide.  Founded in 1997,
Intec was listed on the London Stock Exchange (Code: ITL.L) in June 2000. Intec
is the market leader in intercarrier billing systems and convergent mediation
software, and a recent winner of the 2003 Global Billing Award - Best Overall
Contribution, and Telestrategies '2003 Mediation Excellence Award'. Intec's
portfolio includes:



*         Inter-mediatETM - convergent mediation solution

*         InterconnecTTM - intercarrier billing including US CABS and ITU

*         Inter-activatETM - flow-through provisioning and activation

*         Inter-contenTTM - end-to-end content revenue management

*         Intec Dynamic Charging PlatformTM - a real-time pre/post-paid charging
          interface between the network and the back office



Intec's customer base includes, among others, BellSouth, BellSouth Peru, Brazil
Telecom, Cable & Wireless, Cesky Telecom (Czech Republic), COLT
Telecommunications, EBT (Taiwan), Eircom (Ireland), France Telecom, Hutchison
3G, Maxis (Malaysia), Singtel Optus (Australia), Orange, Telecom Argentina,
Telecom Egypt, Telecom Italia, TPSA (Poland), Swisscom, T-Mobile International,
Telia (Sweden), Telkom South Africa, Telstra, US Cellular, Westel (Hungary),
Vodafone, VimpelCom (Russia) and Verizon. For more information on Intec Telecom
Systems, visit the website at http://www.intec-telecom-systems.com.




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

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