M2 Telecommunications Group (ASX:MTU) Signs A$9M Agreement with People Telecom (ASX:PEO) For Wholesale Mobile Services

Diversified telecommunications services provider M2 Telecommunications Group Limited (ASX: MTU) has today announced that it has executed a two year wholesale agreement to supply People Telecom (ASX: PEO) with Optus third generation ("3G") mobile services, valued at a minimum of $9 million over two years.

The agreement with People Telecom marks another significant milestone in M2's rapidly expanding M2 Wholesale business, in terms of both the sizable monetary value and the strategic significance of the alliance, given People Telecom's established standing in the Australian telecommunications industry, particularly in the small and medium business markets.

The agreement to supply mobile services to People Telecom represents one of the numerous customer additions by M2 Wholesale over recent months, following M2's acquisition of Unitel Australia Pty Ltd from Commander Communications (ASX:CDR) in February this year.

M2's CEO and Group Managing Director, Vaughan Bowen, said of the People Telecom agreement; "The addition of People Telecom to our stable of wholesale customers is very pleasing and further illustrates M2 Wholesale's capability to meet the commercial and operational objectives of sizable players such as People, as well as the several hundred niche telco operators and Internet Service Providers which presently receive fixed line, mobile and data services from M2 Wholesale" M2 has had a busy last 12 months managing the integration of several strategic acquisitions, in the midst of which it delivered a 160% growth in earnings for the half year to December 31 2007 and has forecasted continued marked growth in both earnings and revenues for the full year to June 30 2008.

About M2 Group Ltd

Established in 1999, M2 Telecommunications Group Limited (ASX:MTU) is Australia's largest network independent provider of fixed-line, mobile and data telecommunications services. M2 is head-quartered in Melbourne and employs approximately 160 people nationwide. M2 also provides fixed-line and 3G mobile services in New Zealand.

Within its "M2 Telecom" business division, M2 offers a suite of unique bundled telecommunications services and value added offerings targeted principally at the small enterprise market, distributed through an exclusive trans-Tasman network of sales dealerships, agencies and through targeted on-line marketing ventures (www.simplymobiles.com.au and www.greenmobiles.com.au). M2 Telecom also incorporates Southern Cross Telco, an established retail and small enterprise targeted telco, acquired by M2 in October 2007.

"M2 Wholesale" is the other core business division of M2, in which wholesale telecommunications services are supplied to small and medium sized telecommunications service providers and Internet Service Providers (ISP's). M2 Wholesale was launched in mid 2006 following M2's appointment by Optus as its exclusively endorsed aggregator/enabler of Optus mobile services. As a further boost to its wholesale operations, in May 2007 M2 completed the purchase of Australia's largest independent data wholesaling business, Wholesale Communications Group Pty Ltd (WCG), followed by the acquisition of Commander Communication's established wholesale network services company, Unitel Australia Pty Ltd in February 2008.

M2's consolidated revenues now exceed A$160 million (annualised), approximately evenly shared between M2 Telecom and M2 Wholesale. On the basis of the successful completion of M2's acquisition of People Telecom Limited (ASX:PEO) in mid April 2009, annualised group revenues are expected to surpass A$250 million.

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