By Lighthouse Press Release

18th March 2009 – Interoute, owner operator of Europe's largest next generation network, today announced EBITDA of €25 million for 2008, a €31 million improvement over 2007. It finished 2008 with a fifth consecutive quarter of EBITDA positive growth, taking its accounting revenues for 2008 to €247 million up from €188 million in 2007. Interoute is in a strong position to build on its 32 per cent growth rate recorded in 2008 by capitalising on the global demand for high-capacity connectivity. Since 2003 it has provided both the pan-European enterprise and wholesale carrier market with a portfolio of innovative services and next generation connectivity from its pan-European fibre optic network. In 2008 sales to pan-European enterprises accounted for well over half of Interoute's annual revenues.


Unburdened by legacy technologies, Interoute's network and operating costs increased only 9 per cent in 2008. This operational gearing results from Interoute's next generation business model, which allows the Company to rapidly expand services for its customers based on its fibre optic network without incurring additional costs. This strategy has reinforced its enviable position as a next generation network services provider and allowed it to focus on developing its innovative product portfolio. This includes the creation of the largest privately-owned IP cloud in Europe. This is an IP network that lets companies store their applications and data securely in the Interoute network, meaning IT resources can be accessed from anywhere at anytime. Its enterprise VoIP service, Interoute One, and its content distribution and hosting services are tailored for today's enterprises including the media, music and gaming industries.


Commenting on the results Gareth Williams, Interoute CEO said, “The recent flight towards fibre has been a strong impetus for our revenue growth. This demand for fibre connectivity and services that are optimised by a next generation network is coming from companies who are adopting emerging technologies and expanding their global services Network scalability is crucial for companies wanting to provide ‘on-demand' Software-as-a-Service solutions, or virtualisation technologies and our extensive data centre footprint is designed to deliver a scalable and resilient network that can be ‘turned up or down' on demand as capacity dictates. We have the capacity reserves to roll-out 60Gbps of capacity to new customers in a matter of days.”


Williams concluded: “As other telecoms operators struggle with the financial burden of upgrading their legacy networks, we've focused on our fibre optic heritage. This, together with our business model and lean management structure, allows us to offer customers the most cost-efficient next generation capacity and services. We've secured an edge in this market and what's important moving forward is that we continue to deliver optimum customer service supported by our customer portal and ability to deliver fast and efficiently.”


Interoute's pan European network links to 93 cities in 24 countries. Combined with its 86,700 square metres of co-location space across 59 data centres, Interoute has Europe's largest fibre and duct reserve that allows it to capitalise on existing and new revenue streams from emerging markets. For example, East and South East Europe saw a 39.5 per cent increase in demand for broadband services over the twelve months to September 2008, with countries like Macedonia experiencing a 177 per cent jump in demand1.Given the growth, Interoute continues its commitment to building and operating a communications bridge across the European Continent, and back to North America and the Middle East. The landing of a 300km submarine fibre cable at Mazara del Vallo, Sicily, linking Malta with Italy and the rest of Europe, was a testament to this effort.