PRESS RELEASE

Acquisition of 638 more UK payphones

Today Spectrum Interactive plc announces the acquisition of certain assets of Cardtel Technologies Investments S.A.R.L who own and operate an estate of managed payphones in the UK. This transaction, for an undisclosed fee, involves the purchase by Spectrum of 638 payphones situated throughout the UK but with the majority in the South East of England.

Spectrum's Chief Executive Officer Mark Lewarne said

"This small acquisition helps to expand our payphone estate by approximately 600 units and should add in the region of £500,000 to our turnover in 2006. We are pleased to have completed this deal with Cardtel, whose parent company BBG Holdings Limited will continue to benefit from the transaction by merit of an ancillary agreement for credit and collect call processing. This transaction was attractive to us not just because of the revenue stream but also because the payphone base is mainly located in high-profile UK hotels. This will offer us an opportunity to market our interactive digital services such as wired and wireless internet access in addition to our traditional payphone service."

Enquiries

Spectrum Interactive plc                                         

Mark Lewarne, Chief Executive Officer                   

Philip Congdon, Chief Financial Officer

SpectrumInteractive.co.uk

Citigate Dewe Rogerson                                         

George Cazenove/Nicola Smith

Notes to editors:

Spectrum Interactive plc, which listed on AIM in April 2005, operates over 10,000 payphones and internet terminals across the UK and Germany.

Spectrum is leveraging its payphone units as a strategic asset to generate new revenue streams, including advertising, hosting microcell units for mobile operators and cash machines for ATM operators.

Spectrum has developed a significant and growing base of public internet access terminals, and in February 2005, acquired UK Explorer Limited, which increased its base of UK internet terminals to 1,000 units. Following the acquisition of Broadreach Networks Limited's assets coupled with ongoing organic growth, the base has risen to approximately 1700 units, which has brought Spectrum"s Internet business to approximately 20% of the total turnover.

The Company deploys new payphones in high revenue generating locations and redeploys sites from low revenue to high revenue locations.

In the UK, Spectrum has rolled out 750 new street payphones following an acquisition made in 2004, and in Germany, the Company is actively growing its estate.

Spectrum announced its maiden final results for the year ended 30 June 2005 on 27th Sept. Financial highlights from the release included:

·         Underlying group turnover rose to £17.0m from £15.9m

·         Underlying gross profit margins maintained at 47%

·         Profit after tax £2.46m

·         Basic earnings per share of 9.81p per share

·         Successful flotation on AIM: raised £5.5m used to restructure Company; net debt reduced to £5.1m

·         Strong balance sheet: £2.0m cash at year end

·         Dividend of 1.09p per share