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The prodigy from Munich gets DEM 10 million from Advent International for
product development and international sales

Munich, 23 January 2001 - To allow it to continue its corporate growth and
develop its product development and international sales activities
European Computer Telecoms AG (ECT), the specialist supplier of
new-generation software-based switching equipment for carriers, has been
search of financial backing to the tune of DEM 10 million. After
the proposals of a number of venture capital companies and banks, ECT
decided to go with the investment funds recommended by Advent
Established in 1998, ECT has been profitable ever since, and has now been
valued at DEM 250 million by Advent. The investors have been granted a 4%
stake in the company in return for DEM 10 million. As new shareholders,
investors have also been given a seat on the supervisory board. As early
1999, ECT's operating profit was DEM 5.2 million on a turnover of DEM 12
million. Even higher profits are expected for the year 2000.

Advent International is headquartered in Boston and is among the largest
international private equity companies in the world. With more than 50
equity holdings in telecommunications, this area is one of its main
interests. Advent was impressed with ECT primarily because of its
AutoCarrier(, the pioneering product that has been so successful on the
softswitch market. The AutoCarrier(, a powerful platform for intelligent
value-added services based on Internet-compatible software and
open-standards computer technology, has been on the market since 1998.
large public network operators and young up-and-coming carriers can use
softswitch to offer their customers innovative value-added services like
service numbers or personal number services with unified messaging. ECT's
customers include Smart Telecom, Tele2 and Telecom One.

Jan Janshen, investment manager at Advent International in Frankfurt,
explains: "We're convinced that before long, ECT will be the European
leader in software-based switching technology. ECT impressed us with its
professionalism and the extraordinary strategic skills of its management.
Within a very short time, the original team that set up the company, Dr.
Marshall E. Kavesh, Dr. Hans Huber and Walter Rott, have succeeded in
building up the company to international proportions - and keeping it in

Since it was established in 1998, the company has set up branch offices in
Britain, France, Belgium, the Netherlands and Austria. Other service and
sales offices are being set up in Scandinavia and Spain in the first half
2001. This means that ECT has comprehensive coverage of Western Europe,
primary market, with the Vienna office acting as a bridgehead to Eastern
Europe. There are medium-term plans to develop the Australian and Chinese
markets too.

"ECT will be able to use the funds from the investment and Advent
International's wealth of experience in the field of telecommunications to
continue its rapid expansion into new countries. We'll also use the
opportunity to push ahead in product development. We want to be ready for
CeBIT 2001 with new service applications and the INAP CS1 and CS2
required for intelligent networks", says Dr. Marshall Kavesh, chief
executive of ECT. "We will be building up our workforce from 42 to 60
employees during the course of this year so that we can continue to
guarantee short product cycles and our closeness to the customer."

The company's strategic plans also involve stock market flotation. "But
we're taking a very relaxed approach to it," explains Marshall Kavesh.
enviable income/profit situation and our financial independence mean
no pressure when it comes to deciding the best time to float the company."

About Advent International

Advent International is one of the world's largest international private
equity firms, advising investment funds holding more than DEM 7 billion
active in more than 30 countries. Advent is one of the leading players in
telecommunications, with more than 50 investments and a specialist team of
experienced equity consultants. Its portfolio includes broadband providers
like CyberCity (Denmark), alternative carriers like Jazztel (Spain) and
CyberTron (Austria), manufacturers like Italtel (Italy) and software
suppliers like JacobsRimell (UK) and AtoBe (the Netherlands).
Since its founding in 1984, Advent has financed over 400 companies
worldwide. More than 120 of these companies have completed initial public
offerings on local and international stock exchanges with Advent's help.
For more information, go to

About European Computer Telecoms AG

European Computer Telecoms AG was established in Munich in 1998, not long
after the German telecommunications market was liberalised. The company
develops and manufactures next-generation public switching solutions on
basis of open-standard, Internet-compatible software and computer
technologies. As well as providing intelligent switching and service
platforms, ECT also helps its customers to open up new markets. Its
range from creating new sources of revenue, optimising the use of existing
telecommunications infrastructure, to the rapid introduction of new

ECT's customers include large public network operators as well as
up-and-coming young carriers. The AutoCarrier(, a switching system
and marketed by ECT, is the first ever softswitch to use one and the same
hardware platform to provide a connection to the public telephone networks
as well as to implement intelligent value-added services. This means that
the AutoCarrier( can be used as an interconnect switch, a service node and
as an IN platform. Network operators, telephone companies and Internet
service providers can use service applications to respond instantly to
changing patterns of demand in their markets. They can develop entirely
services, becoming innovators in their particular sector. A wide range of
technologies - such as prepaid or postpaid billing, data warehousing,
advanced routing, interactive voice response (IVR), web-based
administration, automatic call distribution over the network, unified
messaging, digital recording, text-to-speech and speech recognition - can
implemented as new, intelligent services without the need for high
investment or long run-up periods. ECT is constantly developing and
integrating other service applications, all of which can be implemented
directly on ECT softswitches without any additional hardware. And the
Internet can be used to make all services directly available to resellers
and end customers.
For more information, visit the ECT web site at

For more press information:

European Computer Telecoms AG

Albrecht Faber

Ridlerstrasse 55

D-80339 Munich

Telephone: +49 (0)89 55 29 47 - 0

Fax: +49 (0)89 55 29 47 - 111


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