Smart Telecom plc
31 October 2006
31 October 2006
Smart Telecom plc ("Smart" or "the Company")

Result of Extraordinary General Meeting ("EGM")
At an Extraordinary General Meeting of the Company held at 12.00 p.m. today, all
the resolutions set out in the circular to shareholders and notice of EGM dated
9 October 2006 were duly passed.

Shareholders of Smart have today approved the sale of the business to Calally
Limited, a company controlled by Mr Brendan Murtagh.

Under the terms of the agreement, approved by shareholders at today's EGM,
Calally Limited will acquire the assets of Smart for €1 and will assume Smart's
estimated 40 million euro liabilities while Smart will receive a 10%
shareholding in Calally Limited.

Smart CEO Ciaran Casey welcomed the decision of shareholders to approve the
disposal of the Company to Calally Limited and added "while we accept that the
disposal represents a very disappointing outcome for all shareholders, it is the
only option to ensure that shareholders have an opportunity to get some value
for their investment. It also means that the long-term future of the business
can be assured, creditors will be paid in full, employment for staff secured and
services to the Company's customers be maintained."

The restructured Smart will concentrate on corporate and residential broadband
and data services. In the last few weeks Smart has retained over 90% of its
residential broadband customers and has also signed additional contracts with
corporate customers for data services.

"Smart Telecom did achieve significant success in introducing real competition
into the Irish telecoms sector - by sharply reducing Broadband prices to the
levels prevailing in other European markets. However our ambitious targets to
grow our share of the broadband market were impacted by the restrictions which
we, and other operators, face in trying to compete with the incumbent operator
in Ireland. The Board and management take full responsibility for the situation
which we find ourselves in, we are not seeking to blame anyone else. But we do
believe that the government needs to reassess how the market is operating if
companies are to compete more effectively and if the benefits of competitively
priced broadband services are to be made available to Irish residential and
corporate customers" said Mr. Casey. "In other European markets consumers enjoy
the benefits of low cost broadband, alternative operators are permitted to
connect new customers to their networks and are in a position also to generate
significant operating margins".

He added that the decision to apply for the 3G licence and the subsequent court
case had also impacted on the Company's resources.

The full liabilities of the Company are being assumed by the new entity, Calally
Limited. Hugh Cooney (of BDO Simpson Xavier) will continue to manage Smart's
relationship with its creditors. A detailed payment plan is now being developed
to manage payments to creditors.

Ciaran Casey added "All debts will be discharged in full in a reasonable timeframe.
We very much appreciate the patience shown by suppliers in supporting Smart
through this difficult period."

Mr Casey praised Smart's staff by saying: "The dedication and professionalism of
staff in recent weeks cannot be praised highly enough. Going forward, I believe
that the experience, commitment and industry knowledge of our staff will be a
huge asset to the Company."

The High Court is due to give its decision on Smart's action against ComReg over
the withdrawal of Smart's 3G licence later today. Mr Casey said he could not make
any comment ahead of the decision, but that a statement will be issued once the
decision has been delivered by the High Court.

Ends

Enquiries:

Smart Telecom plc
Ciaran Casey
Tel +353 1 469 9300
NCB Stockbrokers
Liam Booth / Conor McCarthy
Tel: +353 1 611 5611
This information is provided by RNS
The company news service from the London Stock Exchange