ATEL Atelis

    ATELIS PLC                                   

                          (`Atelis' or the `Company')                          

                                    Placing                                    

Atelis PLC, a provider of IPPBX telephony solutions for the global SME market,
has today completed the placing of 4,876,000 shares representing 19.48 per
cent. of the Company's issued share capital, at a price of 4.5 pence equating
to �219,420 before expenses. These shares were held by Andrew Caird, the
Company's former chairman, and are being sold for the Company's benefit as part
of the arrangements surrounding his departure from the Company.

The funds raised will be used to develop an online sales channel and a hosted
service solution. The Company's distribution and reseller network has grown
substantially throughout Africa, CSA and Europe.

The Company is seeking to appoint a non-executive director and hopes to be in a
position to announce an appointment shortly.

Rony Cohen, CEO of Atelis commented, "The funds raised from the placing will
provide additional working capital for the company and further enable it to
explore the existing level of demand for our solution. We believe our products
are well positioned to service the SME market, and, with a strong distribution
and reseller network in place, we expect to achieve significant levels of
growth over the coming year."

For further information, please contact:

Atelis plc Tel: +44 (0)870 478 8248

Rony Cohen, CEO

City Financial Associates Tel: +44 (0)20 7090 7800

James Caithie

ICIS Tel: +44 (0)207 651 8688

Tom Moriarty / Caroline Evans-Jones

About Atelis PLC

Atelis was founded in September 2003 for the specific purpose of developing a
range of internet telephony products, otherwise known as VoIP (Voice over
Internet Protocol), which would be sold through an extensive network of
resellers and strategic partners.

Atelis' VoIP software creates what is known as a `Softswitch', providing the
full functionality of a modern day telephone exchange but at a significant cost
saving to the customer. The Company's products can be installed, configured,
deployed and staff trained within 90 days, all at a fraction of the cost of the
traditional telephony solutions currently offered by Atelis' competitors. The
Company's ability to reduce customers' costs, reduce the complexity of the
installation and of the space requirements, not to mention improving
reliability and maintenance, is one of the key competitive advantages of the
software as additional software modules can all function on a single server.

Atelis listed on the AIM market of the London Stock Exchange on 9th May 2006.

For further information on the Company, please visit: http://www.atelis.net/

 



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