ETM Elitel Telecom

RNS Number:2474S
Elitel Telecom S.p.A.
02 March 2007


2 March 2007
                               Elitel Telecom SpA
                       ("Elitel Telecom" or the "Group")

     Acquisition of 58.01% shareholding by Vive La Vie SpA and Telvia SpA.


The Board of Elitel Telecom today announced that it has been informed that Vive
La Vie SpA ("Vive La Vie") and Telvia SpA ("Telvia") have acquired 22,090,145
Elitel Telecom ordinary shares representing 58.01% of the issued share capital
(the "Acquisition") from Kiwi II Ventura-Servicos de Consultoria S.A. ("Kiwi
II"), an early-stage venture capital investor in the Group.  The Acquisition was
effected on 1 March 2007 and has been made as part of a strategic realignment of
Elitel Telecom which is expected to involve Vive La Vie and Telvia providing
significant operational and financial support to implement Elitel Telecom's new
industrial plan.  The Company expects to finalise details of its new industrial
plan within the next month and a further announcement will be made as soon as
possible.

Under the terms of the Acquisition Vive La Vie has acquired 9,905,249 ordinary
shares (26.01%) and Telvia has acquired a further 12,184,896 ordinary shares
(32.00%) from Kiwi II for a consideration which includes an earn-out calculated
on the value of Elitel Telecom determined on the Group's results as at December
31, 2009.  Following this initial acquisition, Kiwi II will retain a 13.45%
stake representing 5,121,491 ordinary shares in Elitel Telecom held indirectly
through its interest in Kiwi.com Servicos de Consultoria S.A. ("Kiwi.com").
However, it is committed to sell to Vive La Vie and Telvia a further stake of
3,422,070 Elitel Telecom (8.99%) subject to the same terms of this transaction
by October 31st, 2007.

The Board is also pleased to announce that Mr Giorgio Fatarella (aged 60),
Chairman of Vive La Vie, has been appointed as Chief Executive of Elitel
Telecom. Giorgio Fatarella has been involved in the Italian telecommunication
market since its liberalisation in 1998.  During that time he has grown Vive La
Vie to a successful and profitable alternative telecommunications and
information technology services company.  Vive La Vie is focused on providing
SME business customers with an integrated service.  Such integration is both a
trend of the market today and what businesses now expect from alternative
telecommunications operators.  In the 12 months ended 31 December 2006 Vive La
Vie reported sales of Euro18.4m and, together with its affiliated companies,
recorded total revenues of approximately Euro40.0m.  Telvia is a newly formed
company for the purpose of acquiring the shareholding in Elitel Telecom and
providing certain financial support in realising the Group's new industrial
plan.

Mr Fatarella is a director of Vive La Vie SpA, G. Fatarella e C SapA and
Office.Com Srl. Mr Fatarella has been involved in the telecommunications sector
in Italy since its 1998 deregulation.  It was at this time that he took Vive La
Vie SpA into this emerging new market, transforming the company into a leading
provider of fully integrated business-to-business telecommunications and
information technology services.  Before founding Vive La Vie in 1994, Mr.
Fatarella had accumulated over 25 years of experience in creating and managing
business-to-business sales networks, including the development of his own
insurance brokerage business Tesmek Srl (founded in 1980 and sold in 1994) as
well as advising a number of major international companies on the development of
their Italian-based business sales networks. Mr Fatarella was appointed a
director of STAR Srl to assist in a restructuring of the business which was put
into liquidation in 1984 but which repaid all creditors with a residual
distribution to its shareholders.  There is no further information required to
be disclosed in accordance with Schedule Two paragraph (g) of the AIM Rules.

Vive La Vie and Telvia are both Italian companies. Mr Fatarella has an 39%
shareholding in Vive La Vie.  The remaining shares are owned by Inasco SA
(28.6%), Alberto Visconti (13.6%), Ornella Longhi (11%), Anna Martinenghi
(7.9%).

Telvia is owned by G. Fatarella e C SapA (49%), Vive La Vie SpA (41%), Ornella
Longhi (10%).

The Board also announces that Elserino Piol, an advisor to Kiwi II, has today
resigned as Chairman and Federico D'Este has moved from his role of Chief
Executive to become Chairman.  As Chairman he will have a significant role in
implementing the new focus of Elitel and he will remain as key external
representative in dealing with the financial community.

Giorgio Fatarella commented that "Elitel has an unexpressed intrinsic value
which the Company will be able to fully realise through the realisation of a new
commercial and industrial plan."

Federico D'Este stated that "The entry of Vive La Vie as a strategic shareholder
of Elitel represents a significant turning point for Elitel with a strategy
focused on the continued strengthening of the Company's position in delivering
ICT services to its business customers."


Elitel Telecom S.p.A                                            +39 02 441 0410
Federico d'Este (Chairman)
Nicolo Zanchi (Investor Relator)

Nominated Adviser
Charles Stanley Securities                                  +44 (0)20 7149 6000

Russell Cook/Freddy Crossley

Corporate Finance Advisor to Vive La Vie SpA
Strempel & Partners Srl                                        +39 02 8699 7475
David Strempel


Notes to Editors

About Elitel

Elitel is an independent Italian fixed line telecommunications group. It
provides a broad range of voice, data and broadband services, including
voice-over IP ('VoIP'), to both businesses and residential customers. The Group
also provides wholesale telecommunications services to other carriers,
international call services specifically for the Italian ethnic market and
telecommunications services to premium content providers.  Elitel's network,
which covers the whole of Italy, is based on interconnection agreements and
access through the leasing of lines from carriers including Telecom Italia and
other international carriers.

Elitel is an Italian company and is subject to the provisions of Italy's Civil
Code regarding changes in ownership.


About Vive La Vie SpA

Vive La Vie is a leader in the convergence of service offerings incorporating
both telecommunications and information technology services.  It is one of the
top 20 licensed telecommunications operators in Italy and is focused on the SME
market with an offering that fully integrates Fixed-line voice, Connectivity,
Mobile voice and IT Services. It has some 5,000 customers and reaching
approximately 130,000 business workstations.


About Telvia SpA

Telvia is a newly formed company with the specific purpose of owning its
acquired stake in Elitel Telecom SpA as well as providing this Company with
certain financial resources in connection with the realisation of its new
industrial plan.




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