Loan Note Conversion

Spiritel PLC
06 March 2006


For immediate release                                           3 March 2006


                                  SPIRITEL PLC
                         ("Spiritel" or "the Company")

                            Conversion of Loan Notes

Spiritel plc (AIM: STP), the telecommunications services business, is pleased to
announce that loan notes with an aggregate value of #2 million held by Penta
Fund 1 Limited Partnership ("Penta Fund 1") and Penta Fund 1 SP Limited
Partnership ("Penta Fund 1 SP") have been converted into new ordinary shares of
1p each at a conversion price of 7.25p per share. Penta Fund 1 and Penta Fund 1
SP are funds managed by Penta Capital Partners Limited ("Penta Capital").
Following the conversion, the aggregate holding of funds managed by Penta
Capital in the issued ordinary share capital of the Company will be 23.8 per
cent.

              Ordinary shares  Ordinary shares  Total number Percentage of
                       before       arising on   of ordinary  issued share
                conversion of    conversion of  shares after capital after
                   loan notes       loan notes    conversion    conversion

Penta Fund 1       11,753,808       27,414,124    39,167,932          23.7

Penta Fund 1 SP        73,784          172,083       245,867           0.1


It is expected the new ordinary shares will be admitted to trading on AIM on 9
March 2006, giving Spiritel a total number of ordinary shares in issue of
165,406,010.

Alastair Mills, Spiritel's Chief Executive, commented: "I am delighted by Penta
Capital's decision to convert loan notes into equity, which underlines the
confidence in our business model of one of our most significant investors."


                                      ENDS


For further information:

Spiritel plc                             020 7160 0100
Alastair Mills, Chief Executive

Teather & Greenwood                      020 7426 9000
Jeff Keating

Buchanan Communications                  020 7466 5000
Mark Court
Mary-Jane Johnson





Notes for Editors:

About Spiritel plc

Spiritel (AIM: STP) is the holding company for a growing group of companies
whose focus is telecommunications services and products. Spiritel, through its
Spiritel Technologies division, has developed a suite of leading-edge VoIP
products, positioning the Company to benefit from the migration from traditional
telephony to VoIP services. Spiritel Technologies' route to market is via
reseller partners. Spiritel's initial trading division, Expo Communications, was
founded in 2000 and is one of Europe's leading call termination businesses
focussing on calls from fixed lines to mobiles. Expo's client base includes
Telewest, Level (3), Colt, One.Tel and Your Communications among others.
Spiritel Technologies' VoIP products are highly complementary to Expo's
termination services as most phone calls made via VoIP require termination in
the same way as calls from traditional fixed line phones.

Spiritel joined the AIM market of the London Stock Exchange in July 2004.


For further information please visit www.spiritelplc.com



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

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