Grant of administration order

RNS Number:2252N
Convergent Communications PLC
07 July 2003


For immediate release
Convergent Communications plc (the "Company")

Grant of administration order and disposals of businesses

The High Court of Justice at Leeds granted an administration order over the
Company and two of its subsidiaries, including its only trading subsidiary
Convergent Telecom Limited ("Telecoms") on Thursday 26 June 2003. The order was
granted following the presentation of a petition by the directors after
discussions concerning the sale of Telecoms broke down and creditors seeking
payment presented petitions for the winding up of the Company and Telecoms. The
order was granted on the grounds that it would be likely to achieve a more
advantageous realisation of the Company's and the two subsidiaries' assets than
would be effected on a winding-up.

The Court appointed Hunter Kelly and Garry Wilson, both of Ernst & Young LLP,
Cloth Hall Court, 14 King Street, Leeds, LS1 2JN to manage the affairs, business
and property of the Company and its subsidiaries during the period for which the
order is in force.

The Administrators are able to announce that agreements were concluded to sell
Telecoms field engineering and repair business on 26 June 2003 to Jetdawn
Limited a related company to Fone Logistics Limited and its mobile phone
customer base to Genesis Communications on 27 June 2003, a division of DSG
Retail Limited.

The proceeds of these disposals will be insufficient to discharge all the
creditor claims and will be used to repay the secured creditor.

The remaining business of connecting dealers to the Networks has ceased
operations as the Network operators terminated Telecoms service provision
licence.

The administrators are currently exploring the value contained within the AIM
listing of the Company. However, if they are unable to establish any value from
this then there is no prospect of a dividend to unsecured creditors and there
will be no return to shareholders.

Further announcements will be made in due course with regard to the AIM listing.

ENDS






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