ATN Aterian Plc

RNS Number:6142J
Atlantic Telecom Group PLC
7 September 2001

                                                           7th September, 2001

                          Atlantic Telecom Group plc

                        ("Atlantic" or "the Company")

The Board of Atlantic announced on 26 June 2001 that it was conducting a
review of its businesses, in the light of the significant fall in the market
value of Atlantic's quoted securities relative to the value of the investment
in its infrastructure and customers. The Board is now in a position to update
the market on the progress of this review and on the action that we are
taking.


Atlantic has succeeded in substantially completing its network build in its
three key markets - UK, Germany and the Netherlands - within its existing cash
resources. However, this has been achieved in conjunction with a significant
downscaling of the businesses. Therefore, the Board believes that the value of
Atlantic's businesses would best be developed either as part of a larger
entity, with access to greater capital resources and strength in depth in each
of its markets, or alternatively with the support of a significant new
investor that is able to provide the additional liquidity that the Company
requires. Consequently, the Board has commenced discussions with sources of
new capital for Atlantic on a standalone basis and with potential purchasers
of the key operating subsidiaries of the Company.


Atlantic's financial flexibility is particularly constrained by the terms of
its Euro200 million and #75 million senior notes ("Notes"). Consequently, the
Board has invited discussions with an informal committee of Noteholders with a
view to discussing the terms of a possible restructuring of the Notes,
although it is not yet possible to give an indication as to the likelihood of
success. Until the results of these discussions become clearer, the Board is
unable to assess whether there is any meaningful value in the ordinary shares.


The Board will continue to operate the business in accordance with its agreed
plan, which includes maintaining very tight control over Atlantic's cash
resources and reducing costs further wherever possible. Our customers should
expect business as usual whilst these discussions are proceeding.


A further announcement will be made in due course.


Contacts:

Atlantic Telecom Group PLC
Graham Duncan, Executive Chairman                            01224 454 000
Susy Atkinson, Director of Corporate Affairs                 0141 403 4747

Close Brothers Corporate Finance Limited
Stephen Aulsebrook                                           020 7655 3100

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