Acquisition of SDN Global

RNS Number:8996S
SatCom Group Holdings plc
23 April 2008


Press Release                            23 April 2008



                           SatCom Group Holdings Plc

                           ("SatCom" or "the Group")

                     Acquisition of SDN Global for US$3.4m

SatCom Group Holdings plc ("SatCom" or "the Group"), a reseller of mobile
satellite services ("MSS"), announces that it has today entered into a
conditional agreement ("Acquisition Agreement") to acquire SDN Global ("SDN"), a
provider of connectivity and data continuity solutions for enterprise markets.

The initial consideration is US$3.4 million, of which US$1.0 million is to be
paid in cash with the balance satisfied by the issuing of vendor notes with a
value of US$2.4million which is repayable within 30 months of closing, with an
annual interest rate of 4% of the amount repayable. The amount repayable is
based on the total profit before tax ("PBT") earned in the 24 months post
closing. If the company earns US$1.0m PBT or less then no debt is repayable. The
debt repayable will increase from US$Nil to US$2.4m on a linear basis between
PBT of US$1.0m to US$1.5m. The consideration will be further increased by
US50cents for every dollar additional PBT in excess of US$1.5m in the 24 months
post closing up to a maximum of US$5.0m

Since its formation in 1982, SDN has constructed a worldwide satellite broadband
network that provides a full range of connectivity and data continuity solutions
for enterprise applications. SDN Global has combined a focus on solutions based
designs with the ability to deliver high quality, secure, broadband connectivity
anywhere in the world.

SatCom has acquired SDN in order to extend its product range to include VSAT
broadband products. With the introduction of Inmarsat's BGAN service, MSS
customers have been able to experience higher data rates than have traditionally
been available with portable terminals.  Customers requiring an "upgrade path"
to lower cost, higher bandwidth, fixed terminal products can now be accommodated
in the SatCom Group.  VSAT equipment are fixed terminals with larger dish
antenna that offer fixed price bandwidth for unlimited use in comparison to the
majority of mobile terminals which prices usage by megabyte for data and per
minute for voice.

During the year ended 31 December 2007 SDN's turnover was US$9.2 million, gross
profit was US$3.9 million and EBITDA was US$(0.35 million). As at 31 December
2007 SDN's net liabilities stood at US$(0.74) million

Mark White, Chief Executive of SatCom, said:  "This is an exciting deal for
SatCom, we have worked with SDN very successfully over the past few years. SDN
have an excellent technical resource with a blue chip customer base primarily
based in the US. The additional resources of SatCom Group plus its global
presence will enable SDN to grow significantly over the next few years. SDN will
benefit from the additional mobile product range and services offered by SatCom
and the global sales offices of the group. SatCom has an excellent track record
of executing acquisitions that deliver value for our shareholders and boost
earnings. The addition of SDN to the SatCom brand will further increase our
product offering."

                                    - Ends -

For further information:
SatCom Group Holdings plc
Mark White, Chief Executive Officer                   Tel: [phone]
[e-mail]                                  www.SatComgroup.com

Martin Ward, Chief Financial Officer                  Tel: [phone]
[e-mail]                                 www.SatComgroup.com

Landsbanki Securities (UK) Limited
Gareth Price / Fred Walsh                             Tel: [phone]
[e-mail]                                    www.landsbanki.com

Abchurch
Heather Salmond / George Parker                       Tel: [phone]
[e-mail]


Notes to Editors

SatCom is a global reseller of airtime services and satellite systems hardware
(mobile handsets and data terminals) for major satellite systems operators,
including Inmarsat, Thuraya and Iridium.  SatCom's key target markets include
the US, Europe, Asia, Middle East and the maritime community worldwide.

SatCom is based in Salisbury in the UK, with further offices in the USA, Dubai
and throughout the Asia region.  SatCom has established a robust customer base
in excess of 20,000 active terminals and is able to offer all communication
solutions.

Products range from small, handheld phones through to terminals such as the
Inmarsat B-GAN, a high speed satellite Internet Protocol modem operating at
speeds of up to 432 kbits/s.   In addition, SatCom provides airtime services via
the three satellite operators to key customers including dealers, commercial
companies and Governments.

The user terminals are used with a SIM card that is registered by the end user
at www.satcomglobal.net . This website is proprietary to SatCom, allowing SatCom
to register terminals and for customers to purchase prepaid airtime online.

Iridium is the only operator to offer a fully global, mobile satellite system,
providing voice and data solutions via a network of 66 low earth orbit ("LEO")
satellites built by Boeing. The Iridium service is delivered to and from remote
areas so is ideally suited for industrial applications such as heavy
construction, defence, maritime, oil and gas and aviation.

Thuraya offers cost effective satellite services to nearly one third of the
globe. Thuraya's satellite operations cover Europe, the Middle East, North
Africa and the Indian subcontinent and operate via a geo-stationary satellite
system.  The Thuraya system includes a second satellite launched in early 2008
providing coverage over Asia and Australia and is expected to be commercially
operational shortly.

Inmarsat was the world's first global mobile satellite communications operator
and is still the only one to offer a mature range of modern communications
services to maritime, land-mobile, aeronautical and other users.  It operates a
constellation of geo-stationary satellites designed to extend phone, fax and
data communications all over the world.

MSS and VSAT markets the mobile satellite services ("MSS") market is currently
estimated at $1.2bn at a wholesale level with this figure forecasted to rise by
5% per annum (Source: Lehman Brothers, October 2007). The very small aperture
terminal ("VSAT") market is estimated at approximately four times the size of
MSS market and has been growing at rate of 10% per annum over the last two years
(Source: Space News, October 2007) .




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