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JWE Telecom PLC (CVG)

JWE Telecom PLC

Acquisitions
JWE Telecom PLC
17 August 2000

                               
                        JWE Telecom PLC
                    ('JWE' or 'The Group')
                               
   Proposed £13.1m acquisitions of Crosshouse Holdings and
                     Direct Voice and Data

JWE  Telecom  PLC,  the telecommunications company,  announces
today  that it has conditionally agreed to acquire the  entire
issued  share  capital of Direct Voice and Data  Ltd  ('DVD'),
which also operates in the telecommunications and data market.
DVD  is  based in Hayes, Middlesex, with regional  offices  in
Daventry and Dublin.

This  follows  the announcement on 13 July 2000 that  JWE  had
conditionally  agreed  to  acquire  the  entire  issued  share
capital  of Crosshouse Holdings Ltd ('Crosshouse'), a  leading
supplier of telecommunications and data equipment and  related
software and services.

*  The consideration for the acquisitions is:

   *  Crosshouse: £8.0 million, comprising £4.5  million  in
      cash, £2 million in loan notes and £1.5 million in the form of
      up to 1.5 million new Ordinary Shares.
   *  DVD:  up  to  £5.1  million,  comprising  an  initial
      consideration of £0.35 million in cash, £0.1 million in loan
      notes and £1.95 million in the form of up to 1.95 million new
      Ordinary  Shares.  Deferred consideration of up  to  £0.75
      million in loan notes and £1.95 million in the form of up to
      1.95 million new Ordinary Shares will be issued dependent upon
      the  audited results for the 13 months ending 30 September
      2000.

*  DVD reported a profit before tax of £301,000 on turnover
   of £4.07 million in the year ended 31 August 1999, and at that
   date had net assets of £556,000.

*  Illustrative pro forma figures have been prepared  which
   show that the Group, as enlarged by these acquisitions and its
   recent acquisition of MNS Ltd in April 2000, which took  the
   Group into telecoms service provision for both fixed line and
   mobile  telephones,  would have had a pro forma turnover  of
   approximately  £50 million.  The Group will have  a  maximum
   total  number of shares in issue of around 48.5  million  on
   completion of the acquisitions.

*  On   completion  of  the  Crosshouse  Acquisition,  Jim
   Thatcher, the managing director of Crosshouse, will join the
   Board of JWE as Director responsible for the Systems Division.

*  Each of the acquisitions is conditional upon shareholder
   approval.   The acquisition of DVD is conditional  upon  the
   successful completion of the acquisition of Crosshouse.   An
   explanatory circular will be sent to shareholders in the very
   near future.

*  As announced in the Preliminary Results statement on  13
   July,  the  Group proposes to change its name to  Convergent
   Communications PLC. This reflects the planned transformation
   of the Group from being predominantly a mobile phone supplier
   and  retailer to a strong business focused provider  of  the
   complete  range  of  mobile and fixed line  voice  and  data
   equipment and services.

Commenting on the acquisitions, Bob Kennedy, Chairman, said:

'Following  a  major review during 1999, the  Group  refocused
towards  becoming  a  one  stop shop for  business  customers'
mobile,  fixed line and internet communications  services  and
equipment needs.  JWE acquired Advanced Digital Telecom Ltd in
July  1999 and MNS Ltd in April 2000 as the first part of this
strategy  and  we believe that the acquisitions of  Crosshouse
and  DVD  now  put  JWE  well on the  way  to  fulfilling  the
remaining elements.

'Based  on  the  last  full  year's  reported  figures   these
acquisitions increase the size of JWE's  activity in  PBX  and
Data  Equipment  and related Software more than  fivefold,  to
just  under £20m annual turnover. They also extend the Group's
engineering and sales support for fixed line data and telecoms
solutions  nationwide  to  satisfy  the  needs  of  multi-site
corporate customers and broaden the Group's geographic base.'


For further information please contact:

JWE Telecom PLC                                   01759 322600
Bob Kennedy, Chairman
Tony Farmer, Chief Executive

Square Mile Communications                       020 7601 1000
Nick Oborne/Louise Robson



                                                                                
                                                                                
Data provided by FE. Care has been taken to ensure that the information is correct, but FE neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

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