Acquisition

RNS Number:3672P
InTechnology PLC
11 January 2007

11 January 2007



               InTechnology plc ("InTechnology" or "the Company")

                    Acquisition of Evoxus Limited ("Evoxus")


InTechnology announces the acquisition for cash of all the issued share capital
of EEscape Holdings Limited, the parent company of Evoxus Limited, "Evoxus", a
telecommunications solutions provider, for #3m.  InTechnology will also repay
shareholder and other debt of #3.6m and take on working capital debt of #1.5m.
The total cash consideration of #6.6m will be financed from InTechnology's
internal cash resources.


About Evoxus


Established as a division of British Telecom in 1999, Evoxus designs, builds and
operates a broad range of voice, data and IT communications products and
services.  Evoxus helps enterprises to improve their efficiency and performance
by harnessing the benefits of Internet Protocol (IP) telephony.


Evoxus advises customers how to deploy IP technology, how to integrate it with
legacy equipment, networks and applications, all with the minimal risk and
capital outlay. Customers include The Woolwich, Barclays Bank, MFI, Lex Vehicle
Leasing, Kelly Services and Midlands Co-operative.


Evoxus audited results for the year ended 31 March 2006 had a group loss before
taxation of #2.0m and net liabilities of #4.1m.  Evoxus is currently profitable
before interest and tax (#0.2m unaudited profit for the nine months ended 31
December 2006) and has annualised recurring revenues of approximately
#17million.  Evoxus' unaudited net liabilities as at 31 December 2006 were
#4.1m.


Background to and reasons for the acquisition


In May 2006, InTechnology formed a new Managed Voice Services Division to help
businesses to realise the significant operational and cost benefits to be
derived from converging their voice and data platforms into one
high-performance, scalable and cost effective IP network.  InTechnology has
already established a presence in this area by developing and deploying an
advanced platform for IP telephony services across its UK-wide network.


The combined organisation will deliver integrated communications services to
mid-market, multi-sited organisations and will further enhance InTechnology's
Managed Services capabilities, integrating the latest network based IP based
solutions with existing equipment and services to create one cohesive, efficient
communications network with minimal capital expenditure.


InTechnology believes that the Evoxus customer base ranging from small and
medium organisations to large multi sited corporate enterprises provides a good
base of opportunity for cross-selling InTechnology's data and network managed
services.


The acquisition also complements InTechnology's recent investment in Mobile
Tornado Group plc which operates in the mobile data services market.



Richard James, a director of InTechnology, is a selling shareholder under the
terms of the acquisition and will receive approximately #280,000 in relation to
the sale of his shares in EEscape Holdings Limited and the repayment of his
shareholder loan.


With the exception of Richard James who is involved in the transaction (as
described above), the directors of InTechnology consider, having consulted with
InTechnology's nominated adviser, Panmure Gordon, that the terms of the
acquisition are fair and reasonable insofar as InTechnology's shareholders are
concerned.


Commenting on the acquisition, Peter Wilkinson, Chief Executive, said:


"Week by week, we are seeing increasing demand for our VOIP services.  This is
an area of exciting growth and one we want to focus on.  Today's acquisition
completes our VOIP offering, adding strong telecoms skills and delivery to our
strong data and network capabilities.


"Our expanded Managed Voice business is an excellent platform on which we can
market the managed services opportunity arising from our recent investment in
Mobile Tornado Group plc."



Enquiries:


InTechnology plc                                                   01423 850 000

Peter Wilkinson / Andrew Kaberry


Financial Dynamics                                                 020 7831 3113

James Melville-Ross / Hannah Sloane


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