The African Lakes Corporation Limited

and

Africa Telecoms Company Limited

Completion of the sale of Africa Online Limited (Mauritius) to Telkom SA Limited

and

Withdrawal of the revised cash offer for The African Lakes Corporation Limited

The sale of African Lakes (the owner of pan-African ISP Africa Online) has had more twists and turns than a Grand Prix race-track.
Everyone involved – those selling the company and the two potential buyers – probably only agree on one thing: the sale ought to have been done by now. Russell Southwood looks at the lengthening number of questions emerging from this deal not yet done.

On 28 January 2007 in issue 340 we announced erroneously that African Telecoms Company (ATC) had secured 52.66% of African Lakes and increased its offer to £18.50 a share, giving the deal a total value of GBP5.04 million.

On Monday 12 February, the Company issued an announcement in which it stated that; “the Company’s auditors, PKF, have recently completed an audit of the TALC, …”.

This statement should have read that the Company’s auditors, PKF, have recently completed a review of the Company’s balance sheet.This review has been carried out in order to determine the liabilities that would need to be settled upon a winding up of the Company in the event that all the subsidiaries had been disposed.

On 13 February, the Board of The African Lakes Corporation Limited (the “Company” or “TALC”) agreed to convene an Extraordinary General Meeting for all shareholders The circular is expected to be posted to shareholders in the next few days.

The purpose of this Circular is to set out the facts before shareholders and enable them to make a choice between the £18.50 being offered by Africa Telecoms Company Limited (“ATC”) and the expected £25.00 per share that would returned to shareholders following the disposal of Africa Online Limited (Mauritius) (“AfOL”) to Telkom SA Limited (“Telkom”).

• The board of Africa Telecoms Company Limited ("ATC") today announces its intention to make a cash offer ("the Offer") to acquire the whole of the
issued and to be issued ordinary share capital of The African Lakes Corporation Limited ("TALC").

• ATC wishes to acquire TALC in order to invest in the Company further and help it develop its potential to become a leader in consumer broadband
services in sub-Saharan Africa.

• The Offer of £15.50 in cash per TALC Share values the existing issued ordinary share capital of TALC at approximately £4.222 million.

• Certain TALC shareholders have irrevocably undertaken to accept the Offer in respect of 74,080 TALC Shares in aggregate, representing approximately 27.20 per cent. of the issued ordinary share capital of TALC.

• TALC's securities used to be listed on the Official List of the London Stock Exchange, but this listing was cancelled in March 2003. Because ten
years have not elapsed since the date of this cancellation, the Offer is subject to the Code.

•The board of Africa Telecoms Company Limited ("ATC") today announces its intention to make an increased cash offer ("the Revised Offer") to acquire the whole of the issued and to be issued ordinary share capital of The African Lakes Corporation Limited ("TALC").

•The Revised Offer of £18.50 in cash per TALC Share values the existing issued ordinary share capital of TALC at approximately £5.04 million.

•Certain TALC shareholders have irrevocably undertaken to accept the Revised Offer in respect of 143,426 TALC Shares in aggregate, representing approximately 52.66 per cent. of the issued ordinary share capital of TALC.

Commenting on the Revised Offer, Richard Bell, Director of ATC said, "The revised offer of £18.50 per share in cash represents a significant increase over our original offer and I am delighted that it has won the support of African Lakes' major institutional shareholder. We are looking forward to implementing our exciting plans for building a pan-African ICT infrastructure".

This summary should be read in conjunction with the full text of this announcement. Terms used but not defined in this announcement shall have the meanings given to them in the announcement by ATC on 28 December 2006 of an offer for TALC ("the Original Announcement").

Enquiries

ATC Richard Bell 07772 251 772

Smith & Williamson Corporate Finance Limited, Adviser to ATC Nicola Horton 020 7131 4000

Access Media Advisory Limited, Adviser to ATC Teresa Miles Walsh 020 7659 5525