euNetworks Reports Fourth Quarter and Full Year 2011 Results

Fourth Quarter 2011

• Total revenues of €23.8m, up 74% from 4Q 2010
• Gross profit of €15.4m, up 60% from 4Q 2010
• Gross margin of 64.7%, down from 70.1% in 4Q 2010
• Adjusted EBITDA of €0.1m, down from €1.8m in 4Q 2010 due to integration costs
• Net loss of €(7.9)m, up from €(7.4)m in 4Q 2010
• 33 new customers gained in the quarter
• 103 new buildings on-net

Full Year 2011

• Total revenues of €72.1m, up 65% from 2010
• Gross profit of €49.7m, up 58% from 2010
• Gross margin of 69%, down from 72% in 2010
• Adjusted EBITDA of €5.9m, improving from €(0.9)m in 2010
• Net loss of €(20.1)m, improving from €(34.2)m in 2010
• 111 new customers gained in the year • 633 buildings on-net, up 73% from 2010
London, UNITED KINGDOM 28 February 2012 – euNetworks Group Limited, announced solid fourth quarter and full year results, with continued growth of the business. Following the successful completion of two acquisitions in Germany and a rights offering, euNetworks is well positioned to take advantage of further opportunities. The fourth quarter was an important period for integration activities as well as network developments and building connections, supporting growth into 2012. Results announced today for the quarter ended 31 December 2011, include a full quarter of LambdaNet Communications Deutschland GmbH (“LambdaNet”) and TeraGate GmbH (“TeraGate”) financials. Going forward, all reporting will be consolidated to euNetworks. For the fourth quarter, total revenues grew by 74% year on year, from €13.7m in 4Q 2010 to €23.8m in 4Q 2011. Recurring revenues were €22.3m, up 112% from 4Q 2010. The non-recurring revenues in the quarter reflected the sale of non-core network assets. Overall, network revenues continued to grow, increasing by 83% from 4Q 2010 to €19.0m. Recurring network revenues excluding LambdaNet and TeraGate were up 22% compared to 4Q 2010 and up 8% from 3Q 2011. Gross profit in the quarter increased by 60%, from €9.6m in 4Q 2010 to €15.4m in 4Q 2011. Gross margin declined to 64.7%, down from 70.1% in 4Q 2010, which largely reflected the addition of LambdaNet and TeraGate to the Group. euNetworks is working to improve gross margin through a combination of integration synergies and high margin new sales. On average, new sales across the combined businesses have gross margin of ~80%. Adjusted EBITDA1 was €0.1m, down from €1.8m in 4Q 2010 following €2.6m of one-off restructuring and integration costs from acquisitions. Excluding these one-off items, underlying Adjusted EBITDA was €2.7m in the quarter. For the full year, total revenues for the Group grew 65%, from €43.8m in 2010 to €72.1m in 2011. Recurring revenues for the year were €68.6m, up 75% from 2010. Network revenues grew by 80% to €54.6m, while recurring network revenues excluding LambdaNet and TeraGate grew 26% to €31.9m in 2011. Gross profit for the year increased by 58% to €49.7m. Gross margin was 69%, down from 72% in 2010. Adjusted EBITDA in 2011 was €5.9m, a significant improvement from €(0.9)m in 2010.

Über euNetworks

euNetworks ist eine Breitbandinfrastruktur-Anbieter. Das Unternehmen besitzt und betreibt 17 glasfaserbasierte Stadtnetze in ganz Europa, die ein Breitband-Backbone verbindet, der durch 53 Städte in 17 Ländern verläuft. Das Unternehmen ist ein führender Anbieter von Rechenzentrumsanbindungen und vernetzt mehr als 515 Rechenzentren in Europa direkt. Darüber hinaus ist euNetworks mit direkter Verbindung zu allen wichtigen Cloud-Plattformen und Zugang zu weiteren. Das Portfolio umfasst unbeleuchteter Glasfaser, Wellenlängen und Ethernet. Wiederverkäufer, Finanzdienstleister, Inhalteanbieter, Medienkonzerne, Rechenzentren und Unternehmen profitieren von euNetworks Glasfaser- und Leerrohrnetz, das auf ihre hohen Anforderungen im Hinblick auf breitbandige Verbindungen ausgelegt ist.