8 July 2022

Gamma Communications plc

(the "Company" or "Gamma")

Issue of equity in connection with options in respect of historical acquisition

Payments made in respect of historical acquisition

Further to announcements dated 2 July 2020 and 28 May 2021, Gamma has recently acquired an additional c8% of the shares of Gamma Holding GmbH ("GHG") (formerly HFO Holding AG).  This has been achieved by a payment of 4.4m euro in connection with an option exercise.  Gamma now owns c96% of the shares of GHG with options to acquire the remaining c4% by the end of 2023.  GHG is a provider of SIP Trunks and unified communications in Germany.

The payment is in the upper half of the possible range which reflects the continued performance of the business since acquisition.

Reinvestment

Under the terms of the original agreement, the vendors of GHG have reinvested £0.5m in Gamma (approximately 14% of the consideration received).

This reinvestment has been achieved by way of subscription for 44,558 ordinary shares of 0.25 pence each in the capital of the Company, which will be issued as new shares.

Gamma has applied for admission of these new ordinary shares to trading on AIM.  Admission is expected to take place at 8.00am on 13 July 2022.

The Company's total issued share capital following admission will consist of 96,540,667 ordinary shares of 0.25 pence each with one voting right per share. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.