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Easynet Group Plc merger with ipsaris Limited

Easynet Group Plc merger with ipsaris Limited. Creating a leading broadband service provider in the UK & France. ipsaris. easynet. The merger of Easynet and ipsaris has compelling strategic and financial logic.

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Easynet Group Plc merger with ipsaris Limited

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  1. Easynet Group Plc merger with ipsaris Limited

  2. Creating a leading broadband service provider in the UK & France ipsaris easynet

  3. The merger of Easynet and ipsaris has compelling strategic and financial logic Combining Easynet’s sales force, customer base, IP networking skills and proven sales-led business model, with ipsaris’ network assets, engineering skills and IT systems creates a strong platform to deliver broadband to SME customers. The strategic logic The financial logic The Enlarged Group will have the capital to support Easynet’s broadband growth strategy at a time when capital is scarce.

  4. Shareholder structure post-transaction Note: Marconi will hold no more than 49.9% of the total voting shares. In the event of full take-up of the tender offer Marconi’s holding would fall to 61.4% Rationale and Transaction highlights • Rationale for Easynet • accelerates strategy • differentiation of product offering • brings c. £314m cash • Easynet to issue 82.9m shares for ipsaris • Pro forma market capitalisation of £475 million (25 June 2001) • Marconi has agreed to sell up to 11.6m shares at a minimum price of 430p by way of a strike price tender bookbuild • EGM approval 19 July 2001, merger completion and admission effective 26 July 2001

  5. The enlarged Easynet organisation David Rowe Executive Chairman Neil Rafferty Chief Executive Will Gardiner Brian Mulligan Peter Hill Steve Rick UK business and carrier services European business services Network & operations UK and Europe Head office and finance

  6. Our opportunity is broadband data services… • SME customers want advanced data services • To date, access prices have been too high • While there are other technologies available to provide broadband: • Cable Passes only a small % of businesses built primarily for residential • WLL Not yet economically proven • Fibre Not economic for most SMEs • The DSL proposition Cost  Speed  Availability

  7. The business opportunity in the U.K. and France • UK business retail market reaches £17bn by 2004 • SME is 60% of total market by 2004 • Ovum estimates the managed bandwidth market to reach £3bn by 2004 • Total business retail market of £16bn by 2004 • SME is 64% of total market by 2004 • Paris - centric & high density per local exchange Source: IDC

  8. THIS IS ONLY A PARTIAL VIEW OF THE DOCUMENT.

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