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LONDON, April 3, 2006 – Intel Capital, Intel’s venture capital investment organization, and PIPEX Communications PLC, a major United Kingdom-based telecommunications provider, announced today that they have jointly formed PIPEX Wireless, a wireless operator which will provide broadband services in major metropolitan areas. These services are designed to meet the needs of consumers, enterprises and governments for wireless broadband, including citywide “hotspot” wireless access.

Intel Capital is investing US$25 million in the new company. PIPEX has transferred its entire 3.6GHz UK spectrum license to PIPEX Wireless to deploy services based on WiMAX (Wireless Interoperability for Microwave Access). WiMAX is a broadband wireless technology designed to provide Internet access over long distances. Intel and PIPEX are the company’s only shareholders.

“WiMAX technology improves the economics of broadband access by lowering costs and providing exciting new service models for customers,” said Arvind Sodhani, Intel Capital president. “This investment is part of Intel Capital’s continued effort to deploy broadband access globally using competitive WiMAX-based technology solutions.”

William Kilmer, managing director of Intel Capital Europe, added: “PIPEX Wireless will compete in this new market by targeting customers who need more than just fixed broadband to the home or office, especially those who want a bundle of different access methods and value-added services. Intel Capital, through its relationship with Intel, plans to work closely with PIPEX Wireless, advising them on trial deployments, partner introductions, and go-to-market activities.”

“We see creation of this new wireless service provider as an incredible opportunity to provide new services to major cities in the UK,” said Peter Dubens, PIPEX executive chairman. “With a wireless service, PIPEX Wireless will offer unique broadband access and services that are very complementary to PIPEX’s existing business of DSL access, hosting and network access.”

Dubens will serve as chairman of the board of PIPEX Wireless, and the company has hired key personnel for the rollout of wireless services. The PIPEX Wireless board and Intel Capital are evaluating qualified candidates for the position of company CEO.

“We are excited by the prospect of investing along with Intel Capital as a shareholder,” Dubens said. “Intel’s relationship with PIPEX Wireless, its brand, industry knowledge and technical expertise makes Intel an ideal strategic investor to help us roll out new wireless services in the UK.”

“PIPEX will provide certain core services to PIPEX Wireless and resell some of the company’s wireless products to PIPEX customers,” Dubens noted.

PIPEX Wireless anticipates the roll-out of its network to begin in London and Manchester in 2007, and target the top eight population centers by 2008. The company is investigating several locations for trial deployments this year. PIPEX Wireless expects to eventually roll out wireless broadband services to the top 50 UK population centers.

About Intel Capital

Intel Capital, Intel’s venture capital organization, makes equity investments in innovative technology start-ups worldwide. Intel Capital invests in a broad range of companies offering hardware, software and services targeting enterprise, home, mobility, health, consumer Internet and semiconductor manufacturing. Since 1991, Intel Capital has invested more than US$4 billion in more than 1,000 companies spanning more than 30 countries. During this time, about 160 portfolio companies have been acquired and another 150 have gone public on exchanges around the world. In 2005, Intel Capital invested about US$265 million in about 140 deals with approximately 60 percent of funds invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit http://www.intelcapital.com.

About PIPEX

PIPEX is a multiple award-winning provider of integrated telecommunications and Internet services. With a broad customer base including small/home-offices and blue chip companies, PIPEX provides a comprehensive range of consumer, business and corporate voice, broadband, security domain name registration and shared and dedicated hosting solutions.

PIPEX’s focus is simple: enabling businesses and consumers to achieve their aspirations through proven communications services and emerging technologies. This is achieved through an extensive portfolio of high-speed Internet connectivity, managed services and hosting, security and voice products — combining exceptional performance, innovation and a commitment to customer service. Owning one of the UK’s most extensive communication networks, PIPEX boasts more than 100 Points of Presence (PoPs) nationwide. In addition, state-of-the-art data centres, which are manned and monitored 24x7, ensure the security of PIPEX’s customers’ business critical applications. Its commitment to investing in its technology infrastructure ensures that PIPEX continues to deliver the most scalable, resilient, secure and reliable services.