April 2001 -  HighSpeed Office raises £15m from Marconi and Consortium of leading UK landlords

HSO Press Release

1st April 2001
HighSpeed Office

HighSpeed Office Ltd ("HSO"), the broadband service provider, today announces that it has raised a total of £15m from Marconi and a Consortium of leading UK landlords, comprising British Land, Canary Wharf, Legal and General, Morley Fund Management and Prudential.

This funding round follows the announcement in January that the Consortium had selected HSO as their preferred broadband service provider to offer high speed telecommunications services to tenants in their commercial properties. With the recent addition of RREEF to the Consortium, this now represents some 60 million square feet of office space in over 900 buildings in the UK.

This round was fully subscribed and HSO now plans to launch broadband services in June, followed by a rapid roll out across the UK.

Chris Butchers, Chief Executive of HSO, commented:

"Gaining the support of Marconi and five of the largest office building owners in the UK as both investors and strategic partners in HSO speaks to the company's commitment to be successful in the SME telecommunications marketplace. Funding the business plan fully in the currently volatile market will provide us with an enormous competitive advantage and validates the viability of our strategy to supply broadband services directly to the desktop."

Martin Moore of Prudential, speaking for the Consortium, added:

"This is a great opportunity for all of us as it enables us to participate actively in the success of HSO and the implementation of broadband services into our properties. We are keenly aware of the continuing need to work with our tenants to ensure they have the highest level of telecommunications products and services. Our relationship with HSO demonstrates our commitment to helping ensure these tenants' needs are satisfied."

HighSpeed Office was established early in 2000 to provide broadband services to small and medium sized businesses in the United Kingdom and Europe. The company was founded by ARC Associates, a specialist investment bank and advisory firm that has focused on the telecommunications sector since 1993.

The consortium is advised by Morgan Stanley & Co Limited. HighSpeed Office is advised by ARC Associates.

For further information, please contact:

HighSpeed Office Ltd

HighSpeed Office installs the latest telecom infrastructure in landlords' buildings and offers a comprehensive range of communications services to tenants, including voice, high speed Internet, secure email, video, web hosting and data services. A large range of software applications and electronic commerce services from leading suppliers is also available to the desktop. Website: www.highspeedoffice.net

Marconi

In this funding round, Marconi has increased its investment to give it a 15% stake in HSO. Marconi will be the exclusive supplier for the planning, resourcing, implementation and management of the HSO broadband network.

Marconi plc is a global communications and IT company with around 55,000 employees world-wide. Marconi has research and development facilities in 19 countries, manufacturing operations in 16 countries, and serves customers in over 100 countries. It supplies advanced communications solutions and the key technologies and services for the Internet. Marconi plc is listed on the London Stock Exchange and the NASDAQ under the symbol MONI. Additional information about Marconi can be found at www.marconi.com

The British Land Company PLC

British Land was founded in 1856 and is one of the largest quoted UK property companies with total properties under management of approximately £9.5 billion. The company has a long-term view strategy and therefore principally invests in income-producing, freehold properties to maximise their growth and potential. British Land is also active in property trading and development and augments its activities through innovative financing. Its portfolio comprises 43% offices, 46% retail, 5% development, 4% leisure and 1% industrial & distribution. Over 90% of its office portfolio is located in the City and West End and includes important developments such as the Broadgate Estate, Plantation House, Ludgate House and Regent's Place. The overall portfolio is of high quality with 91% acquired within the last ten years.

Canary Wharf Group plc

The Canary Wharf Group is a distinctive, integrated property development company focused exclusively on Grade A office space and high quality retail facilities at the Canary Wharf Estate, a major development which is part of the Central London Office Market. Canary Wharf Group was listed on the London Stock Exchange in April 1999. Canary Wharf was subsequently admitted to the FTSE 100 and currently has a portfolio valued at over £4 billion.

Legal & General Property Ltd

Legal & General Property Ltd is a wholly owned subsidiary of Legal & General Investment Management Holdings. The ultimate parent is Legal & General Group plc, which is one of the largest financial services companies in the UK. Legal & General Property Ltd manages over £4.5 billion of UK property in six funds for both internal and external clients. It is one of the largest property fund managers in the UK. Legal & General Property Ltd is experienced in both direct and indirect property investments and has a major development programme. The portfolios comprise 47% retail, 30% offices, 20% industrial, and 3% other uses. 50% is located in London and South East.

Morley Fund Management

The investment management operations of Norwich Union Investment Management Ltd and Morley Fund Management Ltd were brought together in July 2000, under the business name of Morley Fund Management (Morley). Morley is responsible for the management of over £104bn of assets (as at 30.12.00) including over £8bn of UK Property. Morley is the second largest property fund management business in the UK. The Property Team, which is based in the City of London, has a dedicated in house Research and Strategy team, Specialist Occupational and Investment teams covering each sector of the market, and a development team.

Prudential Property Investment Managers Limited

Prudential is one of the largest property investors in the UK with around £11 billion under management. Its team of property professionals are committed to the investment performance of the wide range of funds under management.

Reproduced from HighSpeed Office
http://www.highspeedoffice.net