it@cork

Smart Telecom to exit Examinership through investment from Digiweb

Transaction would create the leading independent Irish owned telecommunications company

Smart Telecom ('Smart'), an Irish provider of voice, data and media communications services, today announces that Digiweb, the Irish national telecommunications and managed services provider, intends to acquire the entire customer base and assets of Smart. The investment by Digiweb, which is subject to approval by creditors and the Irish High Court (the 'Court'), enables Smart to emerge from a period of Examinership and to form part of the Digiweb Group.

The proposed combination would create the leading, independent Irish telecommunications
company and would significantly enhance the scale and scope of the combined Digiweb-Smart
service offering.

Transaction Highlights

• Digiweb and Smart’s multi-platform and wholly owned infrastructure uniquely positions the combined entity to provide digital communications services to 100% of the Irish business and consumer population
• Combines Smart’s leading fibre, high speed DSL infrastructure and Next Generation IP network with Digiweb’s leading datacenter and hosting platform and national wireless infrastructure
• Total subscriber base of 46,500 business, residential, corporate and government customers for broadband, data and telephony, along with over 48,000 webhosting,domain and data centre clients
• Brings together two EBITDA positive businesses with annual revenue approaching 40 million and over 150 employees
• Consolidates the telecoms market creating a stronger service provider with a broader range of services for existing and prospective customers
• Smart will form part of the Digiweb Group, will retain the ‘Smart’ brand and will continue to build on its position as a leading provider of voice, data and managed communications and data centre services in Ireland

Smart entered the Examinership process on 31 August, 2009 in order to restructure its balance sheet and to secure a strategic investment. The investment by Digiweb, which is subject to Court approval, is expected to be finalised by the beginning of December 2009.