IT Group Holdings (fka ITGL)

[TechKim]

IT Group Holdings, Inc. Maintains British Telecom Contract and Builds Competitive Advantage
Wednesday October 24, 2:11 pm ET
New Business Plan Developed


LONDON, Oct. 24, 2007 (PRIME NEWSWIRE) -- IT Group Holdings, Inc. (OTC BB:ITGL.OB - News) announced today that its operating entity, Internet Telecommunications Plc (``ITPLC'') will maintain its wholesale line rental agreement with British Telecom, which will continue to give the company an important competitive advantage as the company secures new contracts and strengthens existing relationships.


The Board of Directors has appointed an acting CEO and Commercial Director to continue to drive its Reseller business. Commenting on this development, Guy K. Stewart, Jr., a director of Internet Telecommunications Plc, said, ``We have been able to secure many of our previous customers even as we have undergone executive level management changes. We are very pleased that we continue to have in place a powerful Telecom Switch with a capacity to handle over 500 million minutes of telecommunications traffic every month. With this Switch in place, we have the network capacity to generate approximately $500 million in revenues without the need for major new capital investments.''

With the new business plan in place, the Company will now focus on capturing the first 2-3% of the UK market to deliver a solid base of recurring revenues and profitability. As the telecommunications market is an 'additive' market, the growth in revenues will be quickly attained from new subscribers. Commenting on this, Dr. Fredrik Verkroost, Chairman of IT Group Holdings, Inc. said, ``We are in a similar phase to filling hotel rooms in a large new hotel. Our switch is in operation and can now be filled with traffic from Service Providers on longer-term contracts. These Service Providers in turn can bring large numbers of their existing subscribers onto our network, which considerably simplifies our marketing approach. We can continue to offer significant savings to our Resellers. We are very confident in our ability to shore up our existing customer base and bring in new business.''