XLN Telecom Secures Backing of ECI Partners

LONDON, September 27, 2010 - XLN Telecom Ltd ("XLN") - the UK's leading provider of
telecoms services for small business - is pleased to announce that ECI
Partners ("ECI"), one of the UK's leading mid-cap private equity groups, has
today taken a majority holding in the Company. The investment is accompanied
by a significant commitment by ECI to support XLN's ongoing business
development and acquisition programme. As a result, XLN will have the funds
available to more than double the size of the business through acquisitions.
XLN's award winning management team, led by founder and Group CEO, Christian
Nellemann, will continue to lead the business following the transaction.

Founded in 2002, XLN specialises in providing small businesses
in the UK with high quality, low-cost fixed-line, mobile and internet
services. In the last three years, XLN's revenues have grown substantially
from GBP27 million in 2006/2007 to over GBP54 million in 2009/2010. In the
last year, the company successfully acquired and integrated One Bill into its
operations.

Key drivers in XLN's growth have been the management team's
successful development of an industry leading proprietary technology platform
that allows new services to be smoothly integrated into the business,
combined with the management team's highly focused approach to marketing,
product development and customer service innovation. Today, the company has
over 115,000 business customers across Britain, XLN now operating two
non-competing brands in the market - XLN Telecom and One Bill.

Christian Nellemann, founder and Group CEO of XLN, commented:

"By taking a completely fresh approach, we have been able to
transform a niche and historically overlooked sector of the market. We have
been able to achieve this by combining best quality products with best value
pricing and industry leading customer service standards. As a result, we now
have a highly profitable and scalable business that will allow us to rapidly
expand the range of services we deliver to the small business market. We are
delighted that ECI will be a key part of the business's exciting next chapter
given the opportunities for consolidation within our sector."

In July 2010, XLN's management team were regional winners of
the best Private Equity Backed Team of the Year (mid-market) in the British
Venture Capital Association Portfolio Company Management Awards (BVCA PCM
Awards).

Tom Wrenn, who led the deal for ECI Partners, added:

"XLN is a superb growth business in a sector that has performed strongly
during the recent downturn. It is led by a high-quality management team that
has a clear vision for the future. XLN has considerable scope to add more
products and services and is in an excellent position to act as a platform
for consolidation in the fragmented telecoms market. We are delighted to be
backing this excellent team and to provide additional capital to continue to
grow the business."

The deal has delivered a multiple of investment of 4.5x for
Zeus, which originally backed the management buy-out of XLN in January 2008
with a GBP6.63 million investment for a majority stake in the business. Zeus
then went on to support XLN's acquisition of OneBill Telecom with an
additional investment of GBP2 million.

Tony Dickin, partner at Zeus Private Equity, said:

"XLN has been able to take advantage of a highly fragmented
sector and position itself as a market leader in the SME telecoms space.
Under the leadership of CEO Christian Nellemann, XLN has experienced
exceptional growth over the past two years and I wish the business all the
best for the future in its partnership with ECI."

About XLN

XLN is committed to providing the lowest cost telecom services
and highest customer service levels to the UK's small business community.
Founded in 2002, XLN is now the UK's largest independent provider of telecom
services to small businesses in Britain with over 115,000 business customers
across the country. In 2007, XLN was ranked as the highest placed telco
company in The Sunday Times Tech Track and was listed for a second
consecutive year in 2008. In 2009, the company was a finalist in the Customer
Focus Award category of the National Business Awards. In the same year, XLN
achieved CarbonNeutral(R) status, making it one of the first companies in its
sector to earn this certification. During 2010, XLN has won a range of awards
including a Global Business Excellence Award, a Best Company Award as well as
being a named finalist in the Federation of Communication Services and Fast
Growth Business awards. In 2010, Christian Nellemann, founder and Group CEO
was a winner of the Ernst & Young Entrepreneur of the Year London & South
region award in the Business Services category. This follows him winning the
Ernst & Young Entrepreneur of the Year Award for Technology and Communication
in 2006.

About ECI Partners

Originally founded in 1976 as Equity Capital for Industry, ECI
is one of the longest established private equity groups in the UK. With
offices in Manchester and London, and a team of 21 dedicated professionals,
ECI specialises in buyouts, buy-ins and development capital deals of GBP10
million to GBP150 million. ECI is owned by its team and manages private
equity funds with a capital base of over GBP880 million and has provided
funds for over 250 companies. In December 2008 ECI raised ECI 9, a GBP437
million fund and ECI's ninth buyout fund. This fund exceeded the original
GBP400m target in just three months with over 90% of the capital being
committed by existing ECI investors. ECI's other notable investments in the
Software and IT Services sector include Ascribe, Clinisys, ClarityBlue, GK
Communications, Language Line, MM Group, NCC, OSI and Guardian iT.

About Zeus Private Equity

Zeus Private Equity was formed in 2005 by Gary Tipper, Ed Fazakerley and
Tony Dickin. The firm's maiden fund, Zeus Private Equity Fund LP, closed in
December 2007 at GBP100m.

From offices in Manchester, London and Bristol, Zeus Private Equity seeks
to invest between GBP5m and GBP15m in established UK companies with an
enterprise value of up to GBP50m. The investment team looks at opportunities
and provides funding for MBOs, MBIs, acquisition finance, equity release and
restructuring.

    - Zeus Private Equity portfolio comprises:Air Energi: international
      recruitment business specialising in the oil and gas industry (MBO)
    - Electranet: specialist networking services supplier, primarily to
      public sector organisations (MBO)
    - Hallmark Hotels: UK regional 4* hotel chain (equity funding for buy and
      build strategy)
    - MJ Quinn: infrastructure services business providing electrical,
      mechanical and fire protection services to the London Underground and
      rail sector (SBO)

    Contact details

    XLN Telecom

    Christian Nellemann (Group CEO), +44(0)20-7793-5533
    James Wilson (Head of Marketing), +44(0)20-7793-5517
    Toby Hall (gth media), +44(0)20-3103-3903
    Jonathan Kinsella (gth media), +44(0)20-3103-3904

    ECI Partners

    Piers Hooper (Equus Group), +44(0)20-7223-1100
    Sam Barton (Equus Group), +44(0)20-7223-1100

    Zeus Private Equity
    Alastair Henry/ Lauren Jones (MC2), +44(0)161-236-1352

Contact details: XLN Telecom: Christian Nellemann (Group CEO), +44(0)20-7793-5533; James Wilson (Head of Marketing), +44(0)20-7793-5517; Toby Hall (gth media), +44(0)20-3103-3903; Jonathan Kinsella (gth media), +44(0)20-3103-3904; ECI Partners: Piers Hooper (Equus Group), +44(0)20-7223-1100; Sam Barton (Equus Group), +44(0)20-7223-1100; Zeus Private Equity: Alastair Henry/ Lauren Jones (MC2), +44(0)161-236-1352