EIC Eicom

RNS Number:4955L
Eicom PLC
03 November 2006

FOR IMMEDIATE RELEASE                                         3rd November 2006

                                    Eicom plc 

   * Acquisition of Programme Rights Acquisition Agency
   * Option to Acquire a Film Library
   * Appointment of New Broker
   * Put and Call funding options to raise up to #2.7 million over the next
     12 months

Eicom plc (("Eicom" or "the Company"; stock code: EIC) announces that it has
acquired the entire issued share capital of Green Light Cable and Satellite 
Limited, ("Greenlight"), a programme rights acquisition agency, and has entered
into an option ("Renown Option") to acquire Renown Productions Limited ("Renown"), 
which owns a UK based film library. The exercise of the Renown Option and 
Eicom's working capital requirements will be funded by a series of put and call
options to raise #2.7 million net over the next 9 months. These funding 
arrangements have been agreed with the company's new brokers, 
Pacific Continental Securities (UK) Limited ("PCS").

Eicom's directors believe that this greatly improves the company's market
position. The directors intend both to continue with the expansion of their
existing digital TV channel plans and to develop the Company as a content
aggregator and a broadcaster ready for Broadband delivery and Internet Protocol
Television (IPTV). The option to acquire Renown is a substantial step in
achieving this aim.

Greenlight

The Company has acquired Greenlight for a consideration of #50,000 paid in Eicom
ordinary shares at a mid-market price on the day of completion. Greenlight was
incorporated in January 2005 and reported sales in its first 16 months of
trading of #409,840 and a loss of #15,000, after payment of a one-off
consultancy fee. Further consideration of #50,000 is payable if Greenlight's net
profit exceeds #75,000 or its turnover exceeds #650,000. The deferred
consideration would be payable within five business days of the net profit and
turnover being agreed between Eicom and Greenlight at the end of the 12 month
period following the acquisition.

Greenlight was established by Noel Cronin, the owner of Renown, and Charles
Jackson, in order to provide a programme acquisition and scheduling service for
cable and satellite channels.  Greenlight is able to license programming/films
through its access to extensive UK based libraries or by going into the
international market.  It also provides a full support service including
programme/film scheduling, traffic management and business affairs.

Greenlight currently provides programme acquisition services to Eicom's
Performance Channel and the Company believes that as it grows its channel
portfolio, Greenlight will provide an essential core resource as well as
continuing to service its other existing and new clients.

Renown

In addition to concluding the Greenlight acquisition, Eicom has, by payment of
#50,000, secured an option to buy Renown for a cash consideration of #1.7
million. The Renown Library owns in excess of 300 feature films and 100 hours of
classic TV drama and it would be Eicom's intention to exploit this library not
just through the creation of one or more digital TV movie channels, but also on
the world's rapidly developing IPTV (Internet Protocol TV) platforms.

Appointment of New Broker

Eicom further announces that it has appointed PCS as its broker. Eicom has
agreed with PCS a put and call funding arrangement whereby Eicom can put or
PCScan call on options to subscribe for new shares to be issued by the Company
to the maximum value of #2.7 million, net of discount, over the next 9 months to
be raised in four tranches of #500,000 and one tranche of #700,000. The shares
will be placed by PCS at a 45% discount to the average of the bid price quoted
by the London Stock Exchange on each of the three dealing days immediately
preceding the date of the Notice of Exercise.

Commenting on these announcements, Eicom Chairman, John Sanderson said:

"We are delighted to be able to make these announcements and demonstrate that
Eicom has been working to improve its market position and prepare for the future
on a sound financial footing.

With regard to the Greenlight acquisition, Charles Jackson's experience of
acquiring programming provides us with an essential tool for our development and
we look forward to working more closely with Noel Cronin who is well respected
throughout the industry and has a wealth of contacts across the world, combined
with considerable experience in acquiring and exploiting content."

                               - ENDS -

Notes for Editors:

About Eicom
EICOM plc is building a portfolio of digital channels, which already includes
the music and arts service, Performance Channel, and its Science and Technology
Channel, SciTech TV, with a mission to exploit these channels through their
distribution in the UK and overseas and on a wide variety of platforms including
satellite, cable and broadband.


For further information, please contact:
EICOM plc
Steve Timmins, Chief Executive                                  +44 7005 964091

Bankside Consultants
Sue Scott/Daniela Hale                                         +44 207 367 8888

Pacific Continental Securities (UK) Ltd
David Morgan/Glynn Reece                                       +44 207 961 0676


ENDS


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

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