Re Contract

RNS Number:8867R
Transcomm PLC
10 November 2003

On 1 October 2003, Transcomm entered into a new agreement with one of its
principal partners specialising in the provision of transport management
systems. The partner, having recently completed a review of providers of
wireless data services in the UK, has chosen Transcomm for the continued
provision of wireless data services until the end of 2006 for large vehicle
fleets in the UK. The agreement guarantees a minimum commitment for wireless
network services of #1.7m over the next 3 years.



As reported in January 2003, Transcomm is experiencing pricing pressure from
alternative network providers, more noticeably within those sectors that do not
require the business critical attributes of the Transcomm network. This has
introduced the need for more flexible tariff structures within certain market
sectors, particularly for large scale, mobile solutions.



The terms of this agreement reflect the further commitment to Transcomm for an
additional 3 years and the volume of subscribers brought to the Transcomm
network whilst also recognising prevailing market conditions. The new agreement
terms will take effect from October 1st 2003 but will result in a reduction in
earnings against the current market consensus of approximately #150,000 for
2003.



As well as securing the retention of a significant number of subscribers until
the end of 2006, Transcomm and its partner agree to seek new joint opportunities
where premium application and network service are an essential requirement for
wireless data solutions within the transport markets.



This agreement further endorses Transcomm's role as a provider of business
critical wireless data services to leading companies across the UK.



10 November, 2003



Enquiries

Andrew Carver, Chief Executive

020 8990 9090




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