Lattice Group's initial contribution to SST was in the form of existing towers, structures and access to Transco's property portfolio.

Lattice Group has paid £7 million (US$10 million) for SpectraSite's interest in the JV.The agreement follows SpectraSite's decision, confirmed today, to withdraw from the UK market, and previously the European market.

This acquisition price reflects the down-turn in the telecoms market and, in particular, Lattice Group's view of the value of the assets in Aerial Sites plc acquired by SST at the end of 2000.

It is envisaged that Lattice will make an exceptional operating cost charge of approximately £30 million in its 2001 accounts. Lattice expects that the value of the assets of SST (100 per cent) will then be approximately £90 million, net of SST's debt obligations of £46 million.

Lattice Group continues to have confidence in SST's prospects. Revenues for 2001 are forecast to exceed £20 million, and the business is expected to be generating positive cash flows from operating activities during 2002.

Note to Editors

SST was formed in June 2000. At that time Lattice Group agreed to contribute approximately 700 existing established communications structures previously operated by Transco. Lattice also contributed access to its substantial portfolio of industrial and commercial property from which to develop further communications structures. SpectraSite's contribution included primarily cash, intellectual property, management expertise and interests in two UK wireless network development and service companies.