The Deal

The merger compliments TE's existing activities and will allow TE to create a larger team, bringing further experience covering a broader portfolio of content expertise with a greater critical mass of business that will drive synergies and economies of scale, whilst proving access to the commercial benefits of working through Eckoh's Network.

Under the terms of the agreement, all 17 employees currently working in the Client IVR Division transfer their employment to TE with Eckoh taking a 27.5% share in the new business. It is anticipated that any transition will be completely seamless to the existing client base, with clients benefitting from being supported and serviced by the larger team which, combined, will have an even greater depth of industry experience. Nik Philpot, Chief Executive Officer of Eckoh, will represent Eckoh on the Board of the enlarged TE. The deal is expected to complete by mid-June 2010.

Background on TE and Eckoh's Client IVR division

Telecom Express specialises in developing and managing services that allow consumers to interact with publications, TV and radio programmes, and websites via telephone and other digital platforms. TE offers clients, which include some of the largest media owners in the UK, media services, such as information lines, voting and competitions; online and in-paper dating services; phone-based psychic and astrology services; and pay per lead advertising services. Founded in 1989, TE is privately owned and employs a team of over 60 staff from its offices in central London.

Eckoh's Client IVR division operates in the media sector helping companies to generate incremental revenue through a wide variety of premium priced interactive services such as games, competitions, voting and information lines, which are accessible to consumers over the telephone or on their mobile using their telephone key pads. The Client IVR division derives its income by taking a share of the revenue that is generated.

Damon Russell, Chairman Officer of Telecom Express Limited, said: "Whilst the media market has in recent times proved challenging, the combination of Eckoh and Telecom Express provides the perfect opportunity to create an unrivalled market leading business that can support our combined clients with renewed vitality and increased expertise for years to come. We believe our customers will be as excited as we are about the prospects of working with the new venture."

Nik Philpot, Chief Executive Officer of Eckoh, said: "It is very exciting to bring together two businesses with such a long history to create a dynamic new company that not only has a more sustainable future but which will be able to service its clients with greater effectiveness. I look forward to working with the new Board to help make the combined business a success for all concerned. At Eckoh, we can now focus all our energies on maximising the growth, opportunity and profits we are experiencing in our speech business. As a pure-play operator in this sector and the market leader in speech recognition solutions, I feel confident that the resulting benefit to our shareholders will be forthcoming and significant."

Enquiries

Damon Russell, Chairman

Neil Morey, Group Finance Director

Tel: 020 7053 7000

Notes to Editors:

About Telecom Express Limited

Telecom Express is the leading provider of interactive marketing services to the UK Media industry. Formed in 1989, the Company was sold by founders Peter Caplan and Damon Russell in 1998 to Abbott Mead Vickers BBDO (AMV BBDO). In 2004 Damon Russell lead a successful management buy out from AMV BBDO and then set about consolidating the market with acquisitions of two key competitors.

Telecom Express manages reader, listener and viewer communications, as well as delivering targeted content to different audience groups, in order to help it's media clients retain and develop customer relationships. The company has an unrivalled client portfolio encompassing major newspaper and magazine publishers, as well as premier Radio and TV broadcasting groups. Telecom Express' services are multi-faceted, spanning all key touchpoints with customers over the telephone, the interment and mobile media. For more information visit: www.telecomexpress.co.uk

About Eckoh

Eckoh is the UK's largest provider of hosted speech recognition services, with over 7 years of experience in successfully deploying speech solutions. These allow our clients to efficiently manage their contact centres by replacing the more repetitive calls with an effective and intuitive automated service. Our solutions address high volume service requests including billing queries, delivery tracking services, travel timetable checks or transactional payments at a fraction of the cost of a live agent and on a 24 hour a day basis.

Our carrier-grade platform has the scalability to handle over 650,000 calls an hour and up to 8,000 simultaneously. Our platform has the capacity to manage even the most dramatic and unexpected call peaks, making it the most scalable and flexible speech-enabled platform in Europe. All of our clients' automation requirements; from speech, SMS, web to touch tone IVR are met via a single infrastructure, protecting them from the need for large scale technology investment - now or in the future.

Eckoh formed a strategic business alliance with BT in 2003. Working in partnership we have helped 20 clients across the financial services, government, utilities, retail & distribution, telecoms and travel & leisure sectors to transform their business operations through the introduction of hosted self-service solutions. For more information visit: www.eckoh.com