RNS Number:6905F
Newport Networks Group PLC
05 July 2006


For release at 0700h, 5 July 2006


        Newport Networks Group PLC ("Newport Networks" or "the Company")

                                Business Update

The following is a business update for Newport Networks for the six months
ending 30 June 2006.

Revenue for the six months is expected to be approximately #750,000 representing
a 250% increase over the same period in 2005. The approximate value of
outstanding orders and deferred revenue at 30 June 2006 was #360,000.

The Company has been in negotiations with a major Network Equipment Vendor and
Tier-1 Service Provider to provide the Session Border Controller elements of a
Next Generation Network with an order expected to be received before 30 June
2006. Contrary to our expectations the order has not been placed and
negotiations continue. The Company has been informed by the Tier-1 Service
Provider that the Newport Networks 1460 Session Border Controller remains the
product of choice for their interconnect requirements.

The Company has also experienced procurement delays with other large next
generation network projects.

At the AGM on 2 June 2006 the Company stated that revenues were expected to be
weighted towards the second half of the year. This continues to be the case but
in the event the delays described above continue and contracts are not
concluded, the Company may not meet market expectations for the 12 months ended
31 December 2006.

The Company has implemented a cost reduction programme to reduce running costs
by 20%. At 30 June 2006 the Company's cash resources were in excess of #10
million.

To offset further the effects of client delays the Company has accelerated the
introduction of a complementary smaller product incorporating an advanced split
media and signalling technology, forming an important part of the IMS (IP
Multimedia Subsystem) architecture. The new product has been well received by
key customers and channel partners and is expected to contribute to revenue this
year.

For further information:              Simon Hudson/ Lulu Bridges
John Everard, Chief Executive         Tavistock Communications
John Ackroyd, Finance Director        Tel: 020 7920 3150 or 07966 477256
Newport Networks Group PLC
Tel: 01291 435700

About Newport Networks.

Newport Networks Group PLC, listed on the Alternative Investment Market of the
London Stock Exchange, has designed and developed the award winning 1460 session
border controller. The 1460 session border controller addresses the key service
delivery issues of quality and security, enabling service providers to create
new revenue streams from VoIP and MoIP while controlling the cost of delivery.
Newport Networks' product innovations and leadership have been recognised
through Frost & Sullivan's 2006 IP Communications Next-Generation Carrier
Infrastructure Entrepreneurial Company of the Year award and Internet Telephony
magazine's Product of the Year 2005 award. Newport Networks' commitment to
deliver the highest quality products and services is demonstrated by the company
becoming the first independent session border controller vendor to achieve ISO
9001:2000 certification. Based in the UK, France, North America and China,
Newport Networks is led by an experienced team with a proven track record of
identifying new service provider network technologies, developing products and
managing the growth of international businesses. Further information at
www.newport-networks.com



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

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