Disposal and Trading Update

RNS Number:0676K
Convergent Communications PLC
15 April 2003


Convergent Communications PLC

Disposal of Convergent Systems Limited ("Systems")

The Board of Convergent Communications PLC ("Convergent" or the "Company")
announces that the Company has today sold all the assets and certain liabilities
of Convergent Systems Limited ("Systems") to Oval (1816) Limited, a subsidiary
of Azzurri Limited. The consideration for the sale amounts to #4,060,000,
payable in cash. The net book value of the assets and liabilities sold amounts
to approximately #960,000. Convergent is retaining the remaining liabilities of
Systems which amount to approximately #1million.  In the year ended 31 March
2002 the assets sold showed an operating loss of #16.359 million (after goodwill
impairment of #12.277 million) on turnover of #17.856 million.

All the proceeds of the sale will be used to reduce bank indebtedness.

The disposal leaves the Group with one remaining trading subsidiary, Convergent
Telecom Limited, which enables the Group to focus on its growing mobile phone
service provision and distribution business.

Trading update

Convergent Telecom has continued to add to its service provision base which at
the end of March 2003 numbered approximately 19,600 subscribers. However, the
distribution business, which supplies mobile airtime on behalf of the major
network operators, has not recovered as rapidly as the Board had expected
following the failure of a major customer which was experienced last autumn.
Coupled with weaker than expected trading in Convergent Systems Limited, the
Board expects that the results for the year ended 31 March 2003 will be
significantly below market expectations, before taking account of the impact of
the disposal of Systems.

Graham Darnell has commenced work in his role as Chief Executive since being
appointed on 7 April and he is currently developing his strategy for the
business.  It is expected that the preliminary results for the year ended 31
March 2003 will be announced in August.

Contact :


Graham Darnell           Chief Executive                 01759 322600


ENDS


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