PlusNet plc - New Product Launch

PlusNet plc

New product announcement

PlusNet plc ("PlusNet"), the UK's best value internet service provider, is delighted to announce the launch of new competitively priced broadband and voice products, representing a further step towards a fully convergent communications service offering.

From 4 July 2006 PlusNet will offer all of its customers the opportunity to bundle their voice line rental and a calls package, incorporating landline and the Company's PlusTalk VoIP service, with their broadband connection from £11 per month in addition to their broadband subscription. In addition, a new entry level broadband service priced at £9.99 per month will be launched on 31 May 2006. Monthly subscriptions for the voice and broadband bundle will start at £20.99. Customers can pre-register for the new bundled voice and broadband products with immediate effect or sign up to the existing broadband service and add calls and landline rental from 4 July.

PlusNet's offering is available on standardised pricing nationwide, as pricing is not dependent on whether a customer is connected via an LLU enabled exchange. A further key attraction to the new package will be the limited customer risk of a one month contract.

Breadth of choice is at the heart of PlusNet's product strategy. Consistent with this strategy, PlusNet customers can tailor their broadband and voice bundle to best suit their needs, choosing from three types of broadband service. Customers can then add landline rental at £11 per month, with 4hrs of calls to local and national 01 and 02 numbers included and free calls to all PlusNet customers and other VoIP (Berlin: A3QA.BE - news) users, with the option to upgrade to include all local and national calls and calls to popular international destinations for an additional charge of £4 per month. To complement the call plans PlusNet will be offering market-leading call rates in the market, saving customers on average 17% compared to rivals.

PlusNet believes it is ideally positioned to deliver convergent communications services to its target customers, who are more experienced internet users. A quality broadband connection will remain at the heart of a convergent communication service; core to the value of the customer experience.

PlusNet's expertise in managing broadband connectivity enables it to assure service quality for customers across all traffic types, whether they are downloading content, using a VoIP service, gaming or simply browsing the internet and accessing email. Experienced broadband customers will increasingly look to reduce landline and mobile call costs by using VoIP services. PlusNet's ability to assure the quality of service over the broadband connection will be critical to the provision of consistently high quality voice service whether via landline or VoIP.

In addition customer interaction through its Workplace operating system allows customers to access and configure convergent products and services easily and flexibly. PlusNet customers will have the advantage of integrated transaction reporting and billing generated via Workplace.

In keeping with PlusNet's low cost sustainable business model the introduction of these new products is not dependent on significant capital investment and the products are expected to be profitable from launch.

Commenting on the new products, Lee Strafford Chief Executive, said: "Broadband customers have demonstrated the demand for voice services to be bundled with their broadband service but have hitherto been put off by long term commitments and product offerings that are restrictive in terms of choice."

Strafford continued, "By leveraging our unique 'Workplace' platform we can deliver choice and great value to UK consumers in a profitable and therefore, crucially, a sustainable way."

For more details go to www.plus.net

Notes to Editors:

Product information:

PlusTalk Anytime will launch nationwide on 4^th July 2006. Key (NYSE: KEY - news) features include:

- Priced at £11 per month

- One month contract, no upfront costs if customer has a BT (LSE: BT-A.L - news) line

- Inclusive of landline rental, no need to pay BT line rental

- 240 minutes of inclusive calls to UK landlines

- Market leading low call rates saving on average 17% against leading competitors

- Available to new and existing PlusNet broadband customers

- Available to 99.6% of UK homes

- Free calls to other PlusNet customers and other VoIP users worldwide

- Admin fee for terminating the service just £20

- Customer support available 24*7 online or by phone

PlusTalk Anytime+ will launch nationwide on 4^th July 2006. Key features include:

- Priced at £15 per month

- One month contract, no upfront costs if customer has a BT line

- Inclusive of landline rental, no need to pay BT line rental

- All calls to UK landlines included (01 and 02 numbers)

- All calls to top 20 international destinations included

- Market leading low call rates saving on average 17% against leading competitors

- Available to new and existing PlusNet broadband customers

- Available to 99.6% of UK homes

- Free calls to other PlusNet customers and other VoIP users worldwide

- Admin fee for terminating the service just £20

- Customer support available 24*7 online or by phone

Broadband Basic will complement the existing Broadband Plus and Broadband Premier products. Broadband Basic will launch nationwide on 31^st May 2006. Key features include:

- From £9.99 per month

- Download speeds of up to 8Mbps

- One month contract

- 50MB inclusive usage. 0.224p per MB for high quality prioritised pay as you go usage thereafter

- Ideal for first time broadband users

- Available to 99.6% of UK homes

- Unique (Taiwan OTC: 3441.TWO - news) network management to guarantee quality and prioritise VoIP calls, gaming and web

- £14.99 to migrate from another provider, or £40 (+ Vat) for a new connection with the option to defer over first 12 months

Comparison of PlusNet broadband, calls and landline packages with key competitors.

Comparison of PlusNet call prices with key competitors.

About PlusNet plc.

PlusNet is the UK's best value internet service provider. Its (Euronext: ALITS.NX - news) unique, highly automated operating system, Workplace, enables it to offer excellent, broadband services at the lowest prices.

PlusNet's, self-developed operating system, Workplace, is highly automated, flexible and scalable allowing PlusNet's products to be competitively priced, whilst delivering a high quality of service and maintaining low operating costs.

In 2005 PlusNet launched Wireless access services and its VoIP product, PlusTalk, which represent a further step towards PlusNet's converged broadband offering encompassing voice, data and entertainment services at home, at work or on the move.

PlusNet listed on AIM, a market operated by the London Stock Exchange (LSE: LSE.L - news) , on 14 July 2004 at an issue price of 90p under the RIC (SNP: ^RICY - news) code PNT.L.

For further information about PlusNet please visit the Company's investor relations site: http://www.plus.net/investors/