VAN Vanco

RNS Number:1747P
Vanco PLC
09 January 2007




Amendments to Swisscom Channel Partner Relationship


On 10 August 2005, Vanco, the pioneering global Virtual Network Operator
("VNO"), announced that it had entered into a channel contract with Swisscom
Solutions AG ("SSAG"). A successful trading relationship has since developed,
with Vanco providing international data network services to companies based in
Switzerland and in the Principality of Liechtenstein. To date, the agreement has
resulted in 14 new contracts with a Total Contract Value ("TCV") of #7.5
million. Today, Vanco is announcing a restructuring of the contract. Changes
have been agreed in order to deliver more flexibility for both parties and to
make the day-to-day management of the partnership more practical. The revised
terms will form the basis for the ongoing relationship for the next three years
and we believe the financial benefits remain very positive.

Under the terms of the new agreement, Vanco has agreed to remove the provisions
making it the exclusive network partner outside Switzerland and the Principality
of Liechtenstein. In consideration of this, SSAG has agreed to: lift the
prohibition on Vanco entering into direct contracts with Swiss-based companies;
make a significant upfront cash payment and to enter into Minimum
Revenue Commitments ("MRCs") to Vanco of $100 million TCV over the next three
years. In addition, Vanco and SSAG have agreed a detailed description of the
marketing activity to be undertaken between the parties and the placement of
Vanco sales staff within SSAG premises. These staff are to assist in new
customer opportunities and management of the sales process. Compensation
payments have been agreed in the event of the MRCs being missed, but these would
not equate to the margin lost on not attaining the MRCs.

Significantly, SSAG is also to become one of the first customers of Vanco
NetDirect. This is the new web-based business developed by Vanco which, for the
first time in the industry, provides a customer with the ability to select,
design, price and purchase data services anywhere in the world from a portal.
The Vanco NetDirect portal has details of over 650 carriers worldwide and will
enable SSAG to provision networks more easily and efficiently. Vanco NetDirect
builds greater scalability into the relationship with SSAG.

Commenting on the revised contract, Allen Timpany, Vanco CEO, said,

"The revised contract reflects a maturing of our relationship with Swisscom. It
allows us to focus on winning business best suited to our target market, without
tying ourselves in to addressing non-core deals, or extensive IT outsourcing
deals that require a significant internal resource and are better served by
other global partners. As we increasingly look to use the Vanco NetDirect portal
to engage with our carrier partners, it is clear that this focus will better
allow us to scale our business through the channels."

Urs Schaeppi, CEO Swisscom Solutions, commented,

"This restructuring shows a refinement in our partnership with Vanco and the
commitment of both parties to move forward with the most appropriate
relationship. This move is good for both businesses, freeing Vanco to focus on
the type of business it wants, while affording Swisscom the means to address a
wider range of customer needs. We have built a successful international business
with Vanco and SSAG look forward to developing this further in the coming
years."



For further information please contact:

Vanco plc

Simon Hargreaves, Group Finance Director
T. +44 (0) 208 6361700

Michael Piddock, Marketing Manager
T. +44 (0) 208 6361721
michael.piddock@vanco.co.uk

Katie Tzouliadis, Biddicks
T. +44 (0) 207 4481000





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