EuroTelecom Comm - Acquisition of Interest, etc.

RNS Number:5443K
EuroTelecom Communications Inc
15 May 2000


               EuroTelecom Communications, Inc.
                               
        INVESTMENT AND CO-OPERATIVE VENTURE WITH Q.TON,
                      AND CONTRACT AWARD
                               
                       BOARD APPOINTMENT
                               
EuroTelecom  Communications, Inc. ("EuroTelecom"  -  UK  stock
code ETMA), the AIM quoted company whose 'application linking'
technology  is used to create the communications backbone  for
intelligent  buildings,  has acquired  49%  of  Q.ton  Limited
("Q.ton").    EuroTelecom  has  been  awarded  a   significant
contract  by Q.ton and will work closely with Q.ton on  future
intelligent building projects.

Q.ton  has  developed  Q.ton Forum,  an  intelligent  business
complex,  in a joint venture with Trinity College,  Cambridge.
The  first site chosen is the Cambridge Science Park  ("CSP").
The  high technology environment that the Q.ton Forum provides
is ideally suited to the combination of academia and blue chip
businesses  that are an established feature of  Cambridge  and
which is much in evidence at CSP.  In addition to the complete
business and technology backbone, conference suites, broadband
telecommunications, IT and videoconferencing systems  it  will
also  provide  a  social infrastructure through  high  quality
restaurants,  shops,  bar, catering services  and  health  and
fitness club. In addition, the project which is intended to be
the  first  in a series of high technology complexes  includes
the  provision of incubator facilities for new business  start
ups.  The  contract to supply and install the high  technology
backbone with comprehensive facilities valued at approximately
#900,000  over  three  months has been  awarded  by  Q.ton  to
EuroTelecom.  In  addition, EuroTelecom  has  been  awarded  a
facilities management contract for Q.ton Forum.

Under the terms of the transaction, EuroTelecom purchased  29%
of  Q.ton  from  Amanda Staveley, Q.ton's Chief Executive  and
sole  shareholder,  in  exchange for 794,000  Class  A  Common
Shares   in   EuroTelecom.    EuroTelecom's   UK   subsidiary,
EuroTelecom  Corporation  Limited ("EuroTelecom  Corporation")
also  subscribed for new shares in Q.ton equivalent to 20%  of
Q.ton  for  #750,000.  Upon completion of these  transactions,
EuroTelecom,  together with EuroTelecom Corporation,  acquired
49%  of the shares of Q.ton.  The proceeds of the subscription
by  EuroTelecom  Corporation will be applied to  substantially
repay  outstanding loans owed by Q.ton to Amanda Staveley  and
Amanda Staveley Limited.

Following  completion  of  the  transaction,  Amanda  Staveley
transferred  40,000 Class A Common Shares to Andrew  Burchall,
who   recently  joined  Q.ton  as  Finance  Director.   Amanda
Staveley  and  Andrew  Burchall  have  entered  into   lock-in
agreements with EuroTelecom restricting the disposal of  their
Class A Common Shares until the earlier of the publication  of
the preliminary results of EuroTelecom for the year ending  30
June  2001 or 30 September 2001.  After giving effect to these
transactions,  Amanda  Staveley holds 2.56%  of  EuroTelecom's
enlarged  share capital and 51% of the enlarged share  capital
of Q.ton.

Amanda  Staveley  is  Chief Executive of Q.Ton  and  has  been
invited  to  join the board of EuroTelecom as a  non-executive
director  on terms substantially similar to the existing  non-
executive   directors.   Philip  Derry,  Chief  Executive   of
EuroTelecom  and David Linell, Finance Director of EuroTelecom
will join the board of Q.ton.

Application  for  listing has been made for the  consideration
shares and dealings are expected to commence on 19 May 2000.
                                                              
Phil Derry, EuroTelecom's Chief Executive said :

"Q.ton  Forum  on the Cambridge Science Park is  a  very  high
profile project which will showcase EuroTelecom's 'application
linking'  technology.  Our investment in Q.ton will  cement  a
relationship which will lead to the development of  a  network
of  intelligent  buildings suited to  high  technology  growth
companies.  We welcome Amanda Staveley to our board."


Amanda Staveley, Q.ton's Chief Executive commented :

"EuroTelecom's  'application  linking'  technology  with   its
broadband  fibre optic communications backbone and  facilities
management skills are vital elements in developing a  suitable
environment  for  incubator and high growth companies.   I  am
greatly excited by the opportunities afforded by the link  now
being forged between Q.ton Limited and EuroTelecom which  will
create  a unique and powerful blend of technology and  skills.
Together they will be in a position to provide the wide  range
of  facilities  that established companies and business  start
ups  need  to  draw on if they are to make the most  of  their
exciting growth opportunities."


This  press release contains forward-looking statements.  Such
statements  are based on the current expectations and  beliefs
of  the  management of EuroTelecom and are subject to a number
of  factors and uncertainties that could cause actual  results
to  differ  materially from those described  in  the  forward-
looking statements.


                             
For further information, please contact :

EuroTelecom         Phil Derry, Chief Executive     01709-590899

Q.ton               Amanda Staveley, Chief Executive01223-813264

Buchanan Communications 
Steve Liebmann / Kirsty Robeson                    020-7466-5000


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