NNG Newport Network

RNS Number:8083Q
Newport Networks Group PLC
05 September 2005


Embargoed. For release at 7.00 a.m. on Monday, 5 September 2005


                      Newport Networks Group PLC ("Company")
                            Market and Trading Update

The IP telephony market continues to accelerate with major portals such as
Google and MSN launching VoIP capability in the last two weeks. This is creating
increased pressure on major operators to move ahead with their plans to
transition their legacy PSTN networks to an IP based solution. These networks
are creating a demand for session border controllers that have a modular and
scalable architecture to support important standards such as IMS (IP Multimedia
Subsystem). In order to implement such networks, operators need to assure
themselves of the interoperability, reliability and performance of all suppliers
products incorporated within the planned networks. This exhaustive process is
leading to some delays in implementation as the major players complete their
design plans.

In response to the growing demand from the market for the enhanced capabilities
offered by the Newport Networks 1460 Session Border Controller, the Company is
making good progress across a broad number of opportunities in the Americas,
Europe and Asia. To address the opportunities, the Company is expanding its
range of channel relationships with some of the world's largest Network
Equipment Vendors, with more than six additional relationships currently being
developed.

The Company is currently addressing over #10 million of near term sales
opportunities. Whilst the gross value of these opportunities exceeds market
expectations, the wider range of required interoperability testing associated
with the additional channels and the drift in timing of some of the
opportunities is likely to result in some of the revenues falling into 2006
rather than 2005. The Board considers that it is now likely that 2005 revenues
will fall short of current market expectations. As at 31 August 2005 Company had
#9 million of cash, which is in line with budget expectations.

Interim results for the six months to 30 June 2005 will be announced on Tuesday
27 September 2005.


For further information visit www.newport-networks.com

Contacts:
John Everard, Chief Executive               Simon Hudson / Lulu Bridges  
Newport Networks Group PLC                  Tavistock Communications 
Tel:  01291 635830                          Tel: 020 7920 3150

 



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

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