Newport Networks Limited Placing and Admission to AIM

CHEPSTOW, WALES, UK - March 29, 2004 - Newport Networks Limited, a developer of critical networking products relating to advanced Voice over Internet Protocol (VoIP) services, is proposing to raise £15 million (net) through a placing of Ordinary Shares. The Company is seeking admission to trading on the Alternative Investment Market (AIM) of the London Stock Exchange.

Sir Terry Matthews, Chairman and John Everard, CEO, founded Newport Networks in September 2000, with the aim of accelerating the commercial launch of VoIP services and extending its reach to a global market. The team has a proven track record of identifying network technologies, developing products and managing their growth. Sir Terry's development of Newbridge Networks and Mitel led to sales of the companies to Alcatel and BT for $7.1 billion and £350 million respectively.

VoIP

VoIP is the ability to transport telephone calls and other media over the Internet via packets of data in much the same way as email is already carried, which should generate substantial cost savings for both service providers and customers alike. The technology also enables the creation of new value-added services to subscribers. Although the uptake of VoIP has been accelerated by the increasing use of broadband, there are existing technical issues which have until now prevented its widespread commercial deployment. They include:

• The current difficulties for customers to connect a call over VoIP through a firewall
• Internet security
• Quality of service (QoS) compared to a traditional telephone network
• The inability of service providers to separate Internet traffic into specific services such as VoIP and charge individually for usage

Newport Networks' Solution

Over the last three years, Newport Networks has focused on developing the technology to provide a solution to these problems via an intelligent device called a 'session controller' which sits within and at the edge of the IP network.

The Newport Networks 1460 Session Controller will enable service providers to meet consumers' technical demands, whilst retaining the flexibility to be deployed across networks of varying sizes and traffic volumes. In addition to pure voice services, it will also enhance multimedia applications. The 1460 can handle up to 100,000 simultaneous voice calls and is being targeted globally at service providers wishing to deploy IP telephony services including both fixed line and mobile operators.

Sir Terry Matthews, Chairman, said: "Newport Networks represents the largest seed capital investment I have made to date, and demonstrates my confidence in the future of Voice over IP. Three years ago, when the possibilities of making voice calls over the Internet were being explored, we identified certain critical issues that would have to be overcome if VoIP were to become a commercial reality. We are now ready to launch a product that solves those key roadblocks and which we believe will set the industry standard. Our management team has worked together for 20 years and is experienced in running highly successful IP-based businesses. I am confident that under the leadership of John Everard, Newport Networks will be no different."

John Everard, CEO, commented: "VoIP and related advanced services are a global phenomenon that will revolutionise the telecoms industry, affecting all telecoms providers whether they be wireline, wireless or cable. In order to take advantage of this, operators are moving to a new network architecture to launch value-added services. Newport Networks will help them create this new network architecture."

"An AIM listing will allow the Company to increase its profile while the money raised will improve the strength of our balance sheet. Both factors will make us a more attractive proposition to our target market."

Evolution Beeson Gregory is acting as nominated adviser and nominated broker to the Company.

For further information, please contact:

Financial Enquiries Rob Collins Evolution Beeson Gregory Tel: 020 7071 4300

Financial Media Justin Griffiths Tavistock Communications Tel: 020 7920 3150

Notes to Editors:

Newport Networks is headquartered in Chepstow, Monmouthshire and its R&D operation is in High Wycombe. The North American market is covered from its base in Ontario, Canada. The total number of employees is 53, of which 35 are engineers. Wesley Clover Corporation provided initial funding in October 2000. The original subscription agreement provided for a phased investment of £9 million. Since that time Sir Terry has invested a further £3.675 million.

Session Controllers (SCs) are intelligent agents that sit within the core and at the edge of carrier IP networks. SCs ensure control of the movement of traffic between networks, provide quality controlled transportation of data within carrier networks and allow traffic to flow securely across the Internet and through firewalls at the local level. SCs can also monitor traffic flows to enable sophisticated billing opportunities.

The Board

Sir Terry Matthews (Non-Executive Chairman)

Sir Terry is Chairman and CEO of March Networks Corporation, a leading developer of interactive broadband IP applications and delivery platforms. Prior to joining March, he was CEO and Chairman of Newbridge Networks, a company he founded in 1986 and which was subsequently sold to Alcatel in May 2000. He was also a co-founder of Mitel in 1972 that was subsequently sold to BT in 1985. In 2001, Terry purchased the Mitel's worldwide Communications Systems division and the Mitel name back. He is now owner and Non-Executive Chairman of the newly formed Mitel Networks Corporation, a company founded on providing next generation IP telephony solutions for broadband networks. Terry holds an Electronics degree from the University of Wales, Swansea and is a fellow of the Institute of Electrical Engineering and of the Royal Academy of Engineering. In 1994, he was awarded an OBE and in the Queen's Birthday Honours 2001, he was awarded a Knighthood. Terry is also the founder and principal investor in Wesley Cover and Celtic House International. He is Chairman of Convedia Corporation, DragonWave, and Celtic Manor Resort in Wales.

John Everard (CEO)

A founder member of Newport Networks, John has over 30 years experience in the networking industry. He previously worked as VP & General Manager - Europe, Middle East and Africa for Newbridge Networks. He is a former Chairman of Telspec and VP & General Manager at Mitel. He has a BSc (Hons) in Electrical & Electronic Engineering from the City University and an MSc in Telecommunication Systems Design from the University of Essex.

John Ackroyd (CFO)

A FCA and former KPMG partner, John has worked as a consultant since 1997 as part time CFO/FD for a number of companies within the high tech and finance sectors. He has served as part time CFO since the formation of the Company and assumed a full time appointment in March 2004. He has an Economics degree from Leeds University.

Simon J. Gibson (Non-Executive Director), OBE

Simon is Chief Executive of Wesley Clover Corporation. Before joining Wesley Clover, he was co-founder, President and CEO of Ubiquity Software Corporation. He has also served as VP, Marketing and Communications at Newbridge Networks in Ontario, Canada. He is an advisor to several government bodies including the National Economic Research Advisory Panel, a member of the Board of the Welsh Development Agency and the Ofcom Consumer Panel.

Sir David Rowe-Beddoe (Non Executive Director)

Sir David has been Chairman of the Wales Millennium Centre since 2001. Sir David has also served as Chairman of the Welsh Development Agency, Chairman of the Development Board for Rural Wales, President of Morgan Stanley - GFTA Ltd. and President of GFTA Trendanalysen BGA Herrdum & Co. Sir David was knighted in 2000 for his services to industry and economic development in Wales. Amongst his public appointments he is patron of the Prince's Trust and Chairman of the Royal Welsh College of Music and Drama.