ecotel communication ag / IPO



Corporate-announcement transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.

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Allocation at the upper end of the bookbuilding range Several times over-subscribed

Düsseldorf, March 24, 2006 – Network-independent telecommunications corporation ecotel communication ag has successfully placed its shares. Lead manager Baader Wertpapierhandelsbank AG closed its books today at 2 p.m. CET as scheduled. The issue price has been set at EUR 17.00 and is thus at the upper end of the bookbuilding range of EUR 14.00 to EUR 17.00. The offer of the total of 1,055,000 shares met with great demand, meaning that the issue was over-subscribed several times. Further information on the subscription and allocations will be released by the company on Monday, March 27, 2006. Trading of the ecotel shares (WKN/SIN 585434) is scheduled to start on FWB, the Frankfurt Stock Exchange, on March 29, 2006.
The successful placement of the total of 1,055,000 shares at an issue price of EUR 17.00 per share spells a transaction volume of EUR 17.94 million. Of this total volume, 935,000 shares stem from a capital increase, from which sales proceeds of EUR 15.90 million prior to deduction of the costs of the flotation will accrue to ecotel. 120,000 shares are a greenshoe from the holdings of existing shareholders.

ecotel plans to use the resources from the IPO to finance the working capital it requires in the framework of growth and to continue its investments in its own systems and switching technology. It wants above all to further strengthen the strongly growing area of “reseller solutions” by expanding its reseller-viable modular platform. In this division, ecotel bundles its services for other telcos and for non-industry marketers as well as wholesale services. However, the Company is focusing also on growth in its core business to date, namely “Business Customer Solutions” by bundling services and more forcefully marketing its range of “Internet telephony solutions“ (VoIP) and other IP services. Moreover, the Company wishes to be able to lock into acquisition opportunities as they arise.
Trading of the ecotel shares is scheduled to start on March 29, 2006.


About ecotel: 

ecotel is a network-independent telecoms provider founded in 1998, immediately after liberalization of the telco market. In what has to date been its core division, “Solutions for Business Clients“, the company provides voice, data and value-added services to small and medium-sized enterprises in particular, as well as direct access for voice and data traffic from a single source. Nationwide, more than 25,000 corporate clients now make use of ecotel’s standardized and customized telecom solutions.

ecotel has brought its products and services for telecoms corporation and non-branch promoters as well as Wholesale services together in its rapidly growing second division of “Re-Seller Solutions”. Systems developed in-house and modern switching technology constitutes the interface between the two divisions and thus enables bundling of services and telecommunications solutions on the basis of new technological standards at favorable rates, e.g., IP services incl. VoIP (Internet telephony).
ecotel communication ag is headquartered in Düsseldorf. In early 2006, a second hub was opened in Munich. At present, the company has a payroll of some 100 staff. In 2005, the telecoms provider placed no. 8 in the Deloitte “Technology Fast 50” competition. In other words, it is among the Top 10 fastest-growing technology companies in Germany.


Please note:

This publication does not constitute an offer for the sale of shares in the company or a solicitation of an offer for the purchase of shares in the company. Such offer is exclusively be made through and on the basis of a securities prospectus which has been published by the company as part of the offering and has been made available on the web site of the company under www.ecotel.de. A printed version has been made available free of charge by Baader Wertpapierhandelsbank AG, Weihenstephaner Str. 4, 85716 Unterschleissheim or ecotel communication ag, Prinzenallee 9–11, 40549 Düsseldorf.
This document must not be distributed outside of Germany, in particular not in the United States of America, to “U.S. persons” as defined under the Securities Act of 1933, or to publications with a general circulation in the United States. Each violation of such limitations may constitute a violation of applicable securities laws





For further information, please contact:

ecotel communication ag

Annette Drescher (Assistant to the Board of Directors) Tel.: + 49 211-55 007-740
Fax: + 49 211-55 007 5 740
E-mail: presse@ecotel.de

For further information please visit www.ecotel.de.

DGAP 24.03.2006 

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language:     English
company:      ecotel communication ag
              Prinzenallee 9-11
              40549 Düsseldorf Deutschland
phone:        +49 (0) 55 00 7300
fax:          +49 (0) 55 00 75300
email:        achim.theis@ecotel.de
WWW:          www.ecotel.de
ISIN:         DE0005854343
WKN:          585434
indices:      
 
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