RNS Number:4476Q
Offshore Telecom PLC
02 October 2003


                                  
                              Offshore Telecom Plc


                     KEY NEW ORDER SIGNED WITH XCHANGEPOINT



Offshore Telecom Plc ("Offshore Telecom") announces that its principal operating
subsidiary, Matrix Network Solutions ("Matrix") has received a letter of intent
from XchangePoint Europe Ltd. ("XchangePoint") for orders which are expected to
generate revenues of #500,000 over the next two years.


XchangePoint is a leading provider of metro-area internet interconnect services.
It offers its customers an extensive range of services that enables them to
balance their peering, transit and access requirements through a single
connection on the XchangePoint platform. XchangePoint currently operates mainly
in London and in Hamburg, Germany and is planning to expand its services into at
least two additional major European Cities over the next two years.


At the outset, Matrix will provide outsourced network support services to assist
XchangePoint in rolling out its services into mainland Europe. Matrix will also
supply and install the communications networks and associated equipment for this
expansion.



Ian Smith, Offshore Telecom's Chief Operating Officer, commented :


"This is the first announcement of a number of significant new contracts won by
Matrix in recent months. The XchangePoint contract will contribute some revenue
in the current year, but the bulk is likely to be booked in our financial years
starting in November 2003 and 2004."


Richard Almeida, CEO XchangePoint added:


"XchangePoint is very pleased to be working with Matrix as a trusted business
partner for network services, contributing heavily to earlier implementation of
our business plans and vastly improving on the traditional supplier approach.
This will accelerate the roll-out of our newly funded plan to grow
XchangePoint's business into Europe"





NOTES TO EDITORS


Offshore Telecom


Offshore Telecom Plc acquired Matrix Network Solutions in April 2003. Matrix
supplies high performance IT network solutions to the public and private sectors
in the UK.



XchangePoint


XchangePoint Europe is Europe's first commercial, neutral provider of Internet
inter-connect and peering. Peering points are the major traffic intersections on
the Internet where ISP backbone providers, content providers and large Internet
users exchange data. Founded in 2000, XPE already has operations in London and
Hamburg and has an extensive customer base which includes all the major European
Telco's as well as tier one carriers, a range of large and small ISP's and
various corporates. For more information on XchangePoint please visit our
website at www.xchangepoint.net






For further information please contact:

Offshore Telecom Plc
Michael Frank, Chairman                                     Tel: 07802-787624
Ian Smith, Chief Operating Officer                          Tel: 07811-327054
Steve Liebmann, Bankside Consultants                        Tel: 07802-888159 /
                                                                020-7444-4163

XchangePoint Holdings Ltd
Yvonne Filler, Marketing Manager                            Tel: 020 7395 6027
John Evans, mj2 Ltd                                         Tel: 020 7491 7784








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