DUTCH ACQUISITION MAKES ESPRIT TELECOM ONE OF THE LARGEST INDEPENDENT TELECOMMUNICATIONS PROVIDERS IN THE NETHERLANDS.

READING, England--(BUSINESS WIRE)--Nov. 19, 1997--Esprit Telecom Group plc (Nasdaq:ESPRY) (Easdaq:ESPR), one of the leading independent telephone companies in Europe, announced today that it has purchased Interaktieve Media Services BV (IMS Telecom), a leading Dutch telecommunications services company. The combination of IMS Telecom with Esprit Telecom Benelux BV, both based in Amsterdam, will create one of the largest independent voice telecommunications providers in The Netherlands after PTT Telecom Netherlands.

"We are an excellent match because the two companies have traditionally focused on different segments of the Dutch market. IMS Telecom is one of the biggest resellers in The Netherlands, with more than 2000 customers. IMS Telecom has traditionally focused on smaller businesses, offering flexible national and international voice, fax, and Internet telecommunications services, while Esprit Telecom has traditionally specialised in serving medium and large sized businesses," said Michael Potter, president of Esprit Telecom Group plc.

Under the terms of the deal, Esprit Telecom will purchase 100% of IMS Telecom's outstanding stock for a combination of cash and shares. IMS Telecom's estimated revenues for 1997 are NLG 23.4 million (7.2 million pounds sterling). To maintain the continuity of both businesses, the companies will trade under their own names until early 1998. Thereafter, they will begin offering joint services under the Esprit Telecom name. By combining the two businesses, Esprit Telecom will have a broader product portfolio and hopes to realise economies of scale.

Thirty-five-year-old MJL Blom, founder and managing director of IMS Telecom, will become managing director of Esprit Telecom's Dutch operations. Nick Goode, acting managing director of Esprit Benelux BV, has been promoted to general manager-sales and will oversee all of Esprit Telecom's European sales operations. "It is my goal to continue Esprit Telecom's growth in the Dutch market. I also hope to play a role in helping Esprit Telecom achieve its goal of becoming the largest independent telecommunications company in Europe," said Blom.

Following the partial liberalisation of the Dutch voice services market on July 1, both Esprit Telecom and IMS Telecom have signed special access agreements with PTT Telecom Netherlands and have been granted four digit special access codes. Access codes enable any Dutch business to access the Esprit Network. In October, both companies were also amongst the first in The Netherlands to compete with PTT Telecom Netherlands in the national long distance market. In the future, the company's operations will use Esprit Telecom's existing 1680 code exclusively to target new business customers.

The IMS Telecom purchase is Esprit Telecom's second acquisition in The Netherlands in 1997. In July, Esprit purchased Swift Global BV, another Dutch telecommunications company that focuses on international voice and broadcast fax services. In June, Esprit Telecom purchased Telecom Europa Ltd., a London based reseller, to supplement its indirect access business in the UK.

Esprit Telecom Group plc, a Nasdaq and Easdaq quoted company trading under the symbols "ESPRY" and "ESPR" respectively, is one of the largest independent telecommunications service providers in Europe. Founded in 1991 and competing in The Netherlands since 1993, Esprit has built a state of the art digital fiber optic network extending to 19 major cities in the United Kingdom, The Netherlands, Spain, France, Germany, Belgium, Italy and Ireland. A pioneer in European telecommunications liberalisation, Esprit Telecom specialises in providing high quality, low cost, customised international and national long distance services that meet the specific needs of small, medium, and large businesses. Esprit Telecom counts leading financial institutions, hotels, travel service organisations, transport companies, and government organisations amongst its many customers.

CONTACT: Esprit Telecom Group plc, Reading

Glenn Manoff, 44 (0)118 951 4000