TNW Teleset Net

RNS Number:5979Z
Teleset Networks PCL
04 July 2007


                                                                     4 July 2007
Teleset Networks PLC
("Teleset" or "the Company")

US$20 million loan & US$3 million equity investment from the
Black Sea Trade and Development Bank


Teleset, a leading alternative fixed-line telecom network operator in Kazan,
Republic of Tatarstan, Russia, announces that it has agreed a US$20 million (#10
million) 7-year secured loan, with a coupon of 2.5 per cent over LIBOR, from the
Black Sea Trade and Development Bank ("BSTDB").

In addition, Teleset has raised a further US$3 million (#1.5 million) via the
issue to BSTDB of 6,348,228 new ordinary shares at a price of 23.8 pence each. 
The new shares will be admitted to trading on AIM on 9 July 2007.

The Company will use US$10 million of the new loan to repay an existing short-
term loan from another bank.  The terms of the loan are significantly better
than for the existing loan, and therefore will reduce the Company's cost of
debt.  The balance of the loan and proceeds from the issue of new ordinary
shares will be used to fund Teleset's continued expansion, including
acquisitions.

In addition to the equity investment and the loan, BSTDB will in due course
appoint a non-executive director to the board of Teleset.

Yiannis Demetriou, Chief Executive Officer of Teleset, said:

"We are delighted that BSTDB has agreed to support Teleset's continued
expansion.  As a result, we have reduced our cost of debt and strengthened our
position from which to implement our growth strategy."

Gueorgui Horozov Director, Energy & Infrastructure of BSTDB, said:

"Teleset is an established customer of BSTDB and a high-quality business
operating in a core region for the bank.  Our decision to make an equity
investment in, as well as a loan to, the company reflects our confidence in
management's ability to deliver strong financial returns."


END



CONTACT


Teleset Networks                                                 +357 22 450 790
Yiannis Demetriou

Black Sea Trade and Development Bank                             +30 2310 290441
Gueorgui Horozov


Blue Oar Securities Plc - Nominated Adviser                     +44 20 7448 4400
Shane Gallwey

Metropol (UK) Limited - Broker                                  +44 20 7439 6880
Alexander Selegenev

Bankside Consultants - Financial PR adviser                     +44 20 7367 8888
Simon Bloomfield



About Teleset

Teleset is the leading alternative fixed-line telecom operator in Kazan, the
capital of the Republic of Tatarstan, Russian Federation, where the business has
been operating since 1996. Teleset owns an all-digital local network with
current switching capacity of 130,000 lines.  Its US$17 million acquisition of
TNPKO in 2006 improved its coverage of Kazan and increased its market share in
Kazan to 27 per cent for voice traffic and 29 per cent of data traffic.

The Company's strategy is to become Kazan's leading telecom operator and to
expand into other cities in Tatarstan and elsewhere in the Russian Federation,
both organically and through carefully selected acquisitions.


About BSTDB


The Black Sea Trade and Development Bank is an international financial
institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia,
Greece, Moldova, Romania, Russia, Turkey, and Ukraine. With an authorised
capital of SDR 1 billion (US$1.52 billion), the Bank supports economic
development and regional cooperation by providing trade and project financing,
guarantees, and equity for development projects supporting both public and
private enterprises in its member countries.


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

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