Fonebak PLC the leader in mobile phone re-use, resale and recycling announced today 1st August 2005 the acquisition of Intec Group Ltd.

Intec was founded in 1996 and has developed into one of the UK’s leading mobile phone repair service organisations.

Its turnover for the year ending September 2004 was £15 million with operating profit of £ 660,000, profit before tax of £634,000 and gross assets at 30 September 2004 of £4.1 million.

It has over the last six months restructured its operations and while sales are anticipated to reach a similar level to those in the year ended 30 September 2004, operating profit will be impacted for a period of time by the changes. The Board of Fonebak expect the acquisition to enhance earnings in the current period and beyond.

Kathy Woodward Chief Executive of Fonebak PLC said:

“We are delighted to be joining forces with Intec. The two organisations have worked closely together over the last twelve months and we are confident that they are the right partner as we develop our strategy of providing integrated post handset sales services.”

Harry Ramis who will continue in his role as Managing Director of Intec said:

“This is an excellent opportunity for Intec. We know the Fonebak team well having supported them in establishing their repair and refurbishment centre in Romania.

We will now be able to offer our clients, who include the major network operators, retailers, insurance companies and manufacturers a range of service options including combining time critical local services with cost effective offshore alternatives.”

The acquisition is for an initial cash consideration of £1.7 million with a maximum additional cash consideration of £2.5 million payable on the delivery of certain performance criteria over a maximum period of two years to 30th June 2007. The acquisition will be financed by a mixture of existing cash resources and enlarged banking facilities.

Fonebak who floated on AIM on 31st March 2005, gave a recent trading update of their year ending June 2005 advising of a strong final quarter of the year, sales up to £37million from £27million in the previous year and profit anticipated to be in line with management expectations. Their maiden results will be announced on 26 September 2005.

1st August 2005

Enquiries:

Notes to Editors

Fonebak PLC

Fonebak is the UK based leader in the refurbishment, resale and end of life processing of mobile phones. It has contracts with mobile phone operators, major retailers and handset manufacturers across Europe to provide services to repair, refurbish and either remarket and/or recycle the millions of handsets replaced each year (it is estimated that over eighteen million handsets are replaced each year in the UK alone).

Fonebak not only provides environmental compliance for its clients and delivers affordable communications to the populations of developing economies (the majority of whom are unable to afford the price of even the cheapest new handset), but through its World recycling support scheme it also raises international environmental awareness and through revenues generated on behalf of its clients (much of which is donated to charity) supports over 1,000 charitable activities. Its combination of business success in international trade and its contribution to corporate social responsibility have won it a number of accolades including Business in the Community Award for Excellence and Queens Award for Enterprise 2005.

Intec Group Limited

Intec is an established and leading specialist in the after sale support of mobile phone handsets. The group comprises two divisions: Intec Distribution and Intec Cellular Services. Intec is recognised in the mobile phone industry for its outstanding levels of quality, customer service and innovation. It has for the last three years won the industry award for repair centre excellence.

Intec Cellular Services has accreditations to carry out repairs for the majority of handset manufacturers and provides complete repair solutions for insurers, network service providers, manufacturers, and retail organisations.

Intec Distribution provides a range of supply services, including sourcing, specialist fulfillment and logistics services.

Biographies

Kathy Woodward, Chief Executive of Fonebak

Kathy joined the organisation in 2002 having previously spent five years with The Astron Group (“Astron”) where she held a main board position of group operations director. Prior to Astron she was Development Director with the British Printing Company Ltd and had spent her early career with ICL plc.

Harry Ramis, Managing Director of Intec Group

Harry founded Intec in 1996, having previously developed one of the first high street chains of mobile phone retail stores. His previous experience had been in a number of senior technical roles with NEC, including responsibility for establishing their total third party repair outsourcing activities.