Acquisition

RNS Number:7477G
Elitel Telecom S.p.A.
26 July 2006


For Immediate Release                                               26 July 2006


                             Elitel Telecom S.p.A.

                    Acquisition of interest in Alpikom S.p.A.

Elitel Telecom S.p.A. ("Elitel" or the "Company") (AIM: ETM), the independent 
Italian telecommunications group, today announced that it has acquired a 54.8% 
interest in the issued share capital of Alpikom S.p.A. ("Alpikom").  Alpikom is 
a regional telecom operator based in Trentino - Alto Adige, in north eastern 
Italy, providing both voice and data services.

Under the terms of the agreement Elitel has acquired its 54.8% interest for a 
total cash consideration of Euro2.9 million, to be financed from the Company's own 
resources, of which Euro119,000 is payable on completion and the balance will be 
paid over the next three years.  Elitel has also been granted an option to acquire 
a further 38.5% interest in July 2009 for a further cash consideration of Euro2.3 
million.  Alpikom's shareholders have also been granted a put option to 
sell a 38.5% shareholding to Elitel in July 2009 for a cash consideration of Euro1.8 
million.  The maximum consideration payable for an aggregate 93.3% shareholding 
will be Euro5.2 million.

Alpikom generated revenues of Euro7.0 million in the year to 31 December 2005 and
an operating profit of Euro972,000. Alpikom's net assets as at 31 December 2005
were Euro3.7 million.


Alpikom offers voice and data services both to residential and business clients
in the Trentino - Alto Adige region. It has a particularly strong relationship
with the local government given its original shareholding. Alpikom has also
developed a data centre in Trento that will strengthen Elitel's housing &
hosting offering. Alpikom's clients comprise banks, industrial and commercial
clients, as well as local public agencies and government.


Commenting on the acquisition, Federico d'Este, Chief Executive of Elitel, said:


"We are delighted to welcome Alpikom into the Elitel group. The business
provides Elitel with a strong local presence in Trentino through the addition of
a strong and prestigious customer base. In addition the Trento data centre
builds further on our voice and data integration strategy."

Enquiries

Elitel Telecom S.p.A                                             [phone]
Federico d'Este (Chief Executive)
Nicolo Zanchi (Group Corporate Development Officer and Investor Relation)

Buchanan Communications                                      [phone]
Jeremy Garcia

Charles Stanley Securities                                   [phone]
Russell Cook/Freddy Crossley

Notes to Editors

Elitel is an independent Italian fixed line telecommunications group. It
provides  a broad range of voice, data and broadband services, including Voice-
Over IP ('VoIP'),  to both businesses and residential customers.  The Group also
provides wholesale  telecommunications services to other carriers, international
call services specifically  for the Italian ethnic market and telecommunications
services to premium content  providers.  Elitel's network, which covers the
whole of Italy, is based on interconnection  agreements and access through the
leasing of lines from carriers including  Telecom Italia and other international
carriers.

By 31 December 2005 the Group's own fixed line customer base comprised more of 
69,000 business customers; 175,000 residential customers and more than 9,200
VoIP end users.

In February 2006, Elitel (www.eliteltelecom.com) floated successfully on AIM, 
part of the London Stock Exchange, raising #8.0 million to fund the expansion of
the Group.



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

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