RNS Number:1797T
Offshore Telecom PLC
12 December 2003


FOR IMMEDIATE RELEASE                                12 December 2003


                              Offshore Telecom Plc

                ACQUISITION OF INTRINSIC NETWORKS FOR UP TO #2M
                                      and
                               BOARD APPOINTMENT


Offshore Telecom Plc ("Offshore Telecom"), the supplier of high performance IT
network solutions to the public and private sectors in the UK through its
principal operating subsidiary, Matrix Network Solutions Limited ("Matrix"), has
acquired Intrinsic Networks Limited ("Intrinsic") for a consideration of up to
#2 million.

Established in September 2002 by Peter Drinkwater and Andy Mills, Intrinsic
Networks represents the next generation of Network Security Integrator,
providing integrated high performance networks security and application security
solutions to large corporate enterprise customers, mobile service providers,
financial service providers and various public sector organisations.  Intrinsic
Networks has already built a significant 'blue chip' customer base, which
includes Vodafone and Yorkshire Water, amongst others.

Intrinsic Networks provides customers with a range of integrated network and
application security solutions, planning, consultancy, project management and
support services.  Additionally, Intrinsic Networks has formed strategic
partnerships with a select group of US security manufacturers including
NetScreen, Fortinet, Sanctum, CipherTrust, BlueCoat and Cerberian.

Intrinsic Networks continues to be innovative in its dynamic approach to
providing leading edge security solutions.

Although historic audited financial information is not yet available, management
accounts for the period from commencement of trading until 30 November 2003 show
revenue of #761,000 and a profit before tax of #118,000.  Net assets being
acquired are #174,000, including cash of #141,000.  These results are drawn up
on accounting policies consistent with those of Offshore Telecom.

Offshore Telecom has paid an initial consideration of #600,000 of which #300,000
was paid in cash and #300,000 in new ordinary shares in Offshore Telecom
(37,500,000 shares at 0.8p).  Subject to the achievement of agreed performance
targets, a further payment of #300,000 in cash and #300,000 in shares may be
made after 29 February 2004 and a final payment of #800,000 may be made in
shares after 31 October 2004.  For each of the further payments the new shares
will be issued at 0.8p per share.  In order for the vendors to receive the full
earn-out consideration, Intrinsic will need to achieve revenues of #1.8 million
and operating profits of #400,000 for the period from 1 December 2003 to 31
October 2004.  The vendors have agreed to retain any Offshore Telecom shares
received as initial and earn-out consideration for at least one year from
receipt.


Peter Drinkwater (aged 39) has joined the board of Offshore Telecom following
completion of the acquisition.  Peter has considerable experience within the IT
security systems market, having held senior sales and marketing positions with
NetScreen Technologies, Network Associates, 3 Com (UK), Bay Networks and Cray
Communications.


Michael Frank, Chairman, said :

"Intrinsic Networks complements Matrix's existing IT network sales and support
activities and takes the group more deeply into the arena of IT security - one
of the fastest growing segments of the market.  A key benefit of the deal is the
excellent opportunity for cross-selling between the customer bases of both
Matrix and Intrinsic.

"This acquisition is in keeping with the group's strategy to build a high
performance integrator of leading edge technologies.

"We are now well on our way to building a rapidly growing and profitable IT
network and security business."


For further information please contact:

Michael Frank, Chairman                       Tel: 07802-787624
Ian Smith, Chief Operating Officer            Tel: 07811-327054

Steve Liebmann, Bankside Consultants          Tel : 07802-888159 / 020-7444-4163



Additional information relating to Peter James Drinkwater :

Current directorship : Intrinsic Network Solutions Ltd.

Former directorships within the last five years : none

No further disclosures are required in accordance with Schedule 2 (f) of the AIM
Rules.



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

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