Aethos Communication Systems Acquired by Logica for $77.5 Million.

DALLAS--(BUSINESS WIRE)--Dec. 21, 1998--

Pre-paid mobile leader to reinforce Logica's provision

of IT solutions in telecommunications sector

Aethos Communication Systems, Inc., an international telecommunications software and services provider specializing in mobile network planning and solutions that allow pre-paid calling, has been acquired by IT giant Logica plc for $77.5 million, and will be integrated with its Logica Aldiscon subsidiary.

Aethos' pre-paid solution is acknowledged as a leader, employing sophisticated intelligent Service Node technology which makes implementation, upgrading and security easier than competing systems. Aethos' technology for pre-payment is already in use with 15 customers around the world in key markets including the U.S., Germany and Asia Pacific. Market research estimates put current usage of pre-paid solutions at approximately 7% of mobile subscribers. This is expected to grow dramatically, rising to 40% by 2008.

Aethos is also a successful player in the mobile network planning market, with a respected product -- Odyssey -- widely used by operators in Europe and the U.S., and has a strong telecommunications consulting practice.

Besides its Dallas headquarters, Aethos also has a United Kingdom office in Bristol and a sales operation in Malaysia. It currently employs around 160 employees, of whom some 100 are based in Bristol. For the financial year ending March 1998, Aethos earned revenues exceeding $18 million.

"This move offers a great future for our customers and markets around the world," said Dave Edwards, Aethos Managing Director. "Both Aethos and Logica have been notably successful, fast-growing and innovative companies in recent years and this marriage of our skills and resources is certain to lead to increased opportunities across a range of telecommunications technologies. The Aethos brand name and direct customer relationships will remain intact."

Dr. Martin Read, CEO and Managing Director of Logica plc, which also acquired Dutch telecommunications consultancy DDV Group today said, "(The acquisition) reinforces Logica's leading position in the provision of IT solutions to the telecommunications sector. (Aethos) reflects Logica's strategy of concentrating on repeatable, value added, mission critical systems in fast growing international markets."

About Aethos

Aethos Communication Systems, Inc., based in Dallas, is an international telecommunications software and services company providing innovative solutions and consulting services to wireless network operators and equipment manufacturers around the world. With offices in the United States, the United Kingdom and Malaysia, Aethos provides a portfolio of hardware and software telecommunications products and services that include: Pre-payment Solution, a flexible service platform for developing and delivering advanced IN services, such as pre-paid wireless; Service Node Support System, the software management tool supporting the Pre-payment Solution platform; Odyssey, the most advanced wireless network planning tool available and unrivalled Consulting Services.

During the financial year to March 1998, Aethos experienced continued growth with revenues exceeding $18 million. Aethos can be found on the World Wide Web at www.aethos.com.

About Logica

Founded in 1969, Logica plc is a leading international computer consultancy, systems integration and software company. Logica's clients operate across diverse markets including finance, telecommunications, energy and utilities, industry, government, defense, transport and space. Logica has approaching 8,000 staff in 23 countries worldwide. For the financial year ending 30 June 1998, Logica's pre-tax profits were $68.9 million on a turnover of $780.5 million.