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Memorandum of understanding signed

Atel is to take over Ascom Installationen AG together with its subsidiary Ascom Planel AG from the Swiss telecommunications Group Ascom. Atel and Ascom signed a corresponding memorandum of understanding at the beginning of the year. The deal should be finalised before the end of this month after completion of Due Diligence.

Ascom Installationen AG to Atel

Ascom Installationen AG is a well known Swiss company which has earned itself an excellent reputation in the electrical installations sector. Its subsidiary Ascom Planel AG specialises in electrical and communications planning. The approximately 450 employees of the two companies earned revenues in 1999 of around CHF 60 million. Ascom Installationen AG has 18 branches throughout Switzerland as well as in Weil am Rhein in Germany.

Atel intends to take over all the employees and management of Ascom Installationen AG/Ascom Planel AG.Thus the substance of the business as well as the jobs are guaranteed over the longer-term. At the same time Ascom and Atel will enter into a long-term cooperation agreement.

With the take over of the two Ascom subsidiaries, Atel can decisively expand its market position in the service and electrical installations business. The Atel installations business, with annual revenues of around CHF 200 million and about 1400 employees, is already today one of the leading electrical installations companies in Switzerland.

Ascom will continue to provide country-wide support and customer services for "Networking" and "Revenue Management".

Aare-Tessin Ltd. for Electricity, Olten Ascom Management AG, Berne