The management of this telco network company have shelled out just short of 20 million on assets worth over 400 million, amazing. Please read the following report.

Many thanks to Brian for this excelent e- mail on the company.

If it's good enough for Warren Buffett ........
Published: 07:41 Fri 29 Aug 2003
By Joanne Wallen, Associate Editor,/b>


Alternative telecoms player GX Networks is defying all odds - it has just raised a further 12 million, made another acquisition and should be profitable 'very soon' thanks to the vice chairman's cunning plan - it's also in a sector that two US billionaire investors have bought into.

Peter Dubens is vice chairman of GX and also of ukbetting, and his strategy for both is the same. He is taking advantage of what he views as a unique moment in history to create two businesses that both become the beneficiaries of the massive over investment made by young companies in the past four years.

GX (GXN) today announced that it has acquired Firstnet Services, a similar telecoms business to itself, from Minorplanet (MPS) for 4.3 million. At the same time it has raised 12 million through an institutional placing of 261.9 million shares at 4.75p.

GX Networks was a private company that Dubens bought last year, before reversing it into AIM-listed Zipcom and changing the name to GX. The company bought two businesses that were virtually bankrupt and two more since that were 'not distressed' including today's acquisition of Firstnet Services from Minorplanet.

Dubens told Citywire that in total, these businesses have had investment of a massive 400 million, fuelled by the investment money being thrown around during the dotcom bubble. The opportunity comes from acquiring the expensive technology and infrastructure that this spending frenzy paid for, while chopping out all the excess costs and creating at a fraction of the original cost a viable business.

GX is a provider of telecoms and Internet hosting services to small and medium businesses. Another valuable legacy of the halcyon days is the long-term rental type agreement it enjoys with network owner Fibernet (FIB). GX is probably the sole survivor with a 25-year (now 23 years left to run) Indefensible Right of Use (IRU) agreement with Fibernet. This agreement effectively gives GX ownership of part of the network for the duration of the IRU. GX's previous owner paid some 11 million up front for the privilege, but it was an agreement that caused strange accounting anomalies among the carriers, and Fibernet for one stopped issuing IRU's.

Dubens says the IRU gives GX far lower capital costs than any other telco, since it is not responsible for maintaining the network for the next 23 years.

The idea therefore is to get as many customers as possible using the network, hence today's acquisition and the previous purchases of Transigent last October and Telenor Business Holdings' XTML and Compulink Information eXchange in July, each of which has been primarily for the customer base. The company now has some 20,000 customers and 44 million worth of billings.

Firstnet also adds some wireless and broadband technology and significantly increases the company's hosting capacity.

There is clearly significant duplication in putting these similar businesses together – call centres, management teams and the like, and Dubens and his team have already demonstrated at Ukbetting that they can be ruthless in stripping away unnecessary costs.

So after the devastation of the past few years, is there really still a viable business for an alternative telecoms operator? 'More so than ever,' reckons Dubens. He cites ukbetting's own situation as an extensive user of telecoms, spending some 700,000 a year on communications. The online betting site has leased lines, satellite links, virtual private networks and is absolutely dependent on having a service that can handle millions of bets coming through at the same time for a major sporting event. Dubens reckons small and medium businesses need a reliable alternative to the incumbents like BT, that can offer a more personalised service to their customers.

But he would say that. A more compelling reason to believe that there will be some winners in the sector is the recent investment by two well known billionaire investors, Warren Buffett and Carl Icahn.

Buffett, the traditionally tech-averse 'Sage of Omaha' emerged with a $20 million (12.7 million) stake in US telco Level 3 in May, while Icahn, a 67-year-old billionaire, took XO Communications out of bankruptcy in January and has since launched a $700 million hostile offer for bankrupt telecom provider Global Crossing.

Shortly after announcing his offer for Global Crossing, Icahn is reported to have said: 'This is like the railroads in the 1880's.'

Dubens himself is no slouch. As well as GX and Ukbetting he is a co-founder of Avocet Capital Management, a European technology hedge fund management business.

Two UK shrewd investors to have spotted the opportunity are A-rated Roger Whiteoak, with 4 million shares in the Framlington UK Smaller Companies Acc fund and also 45 million shares or 4.59% in the Throgmorton Trust (THRA). AAA-rated Patrick Evershed holds 0.51% for the New Star Select Opportunities fund.

GX's shares are currently up 0.125p at 5.625p, valuing the business at 56.6 million. If the company can break into profit any time soon, and the hunches of Dubens, Buffet and Icahn are right, now is the time to buy. Just remember this is still a risky business, and Buffett and Icahn at least can afford to lose a few shirts.ENDS.

Indeed risky but if all things go to plan just how big will the reward be.

GF

SOME HOT STUFF HERE GUYS, that 8.5p might be a little bit low now. News just out.

e-mail from a city pal.

Tip Update: GX has more good news to come
Published: 16:24 Tue 30 Sept 2003

By Joanne Wallen, Associate Editor
Email to a friend


Citywire tip GX Networks has made good progress so far and we believe more good news is imminent, meaning there should still be time to get a piece of the action.

GX (GXN), formed from the merger of Zipcom and GX Networks, is a provider of telecoms and Internet hosting services to small and medium businesses.

The company has been acquiring companies that spent a lot of dotcom bubble money building expensive infrastructure, but then ran into financial problems. It inherited a valuable 25-year (now 23 years left to run) Indefensible Right of Use (IRU) agreement with alternative telecoms provider Fibernet, which effectively gives GX ownership of part of Fibernet's network for the duration of the IRU. GX's previous owner paid some 11 million up front for the privilege.

The game plan therefore is to get as much volume of traffic onto the network as possible to maximise the returns from a relatively low cost base.

Chairman Peter Dubens, also vice chairman of sports content and betting website ukbetting, told Citywire today that he was very pleased with progress so far, particularly with the broadening of the mix of services the company now provides.

GX is now billing an annualised 43-44 million, of which the amount coming from straight 'access,' in other words the provision of lower margin leased telecoms lines, has fallen to 38% from 60% while hosting has risen to 20% of the business from 6%. The company also offers broadband, wireless broadband, security and anti-virus software and resells hardware.

Turnover for the six months to June rose nearly five-fold to 11.1 million and gross margins improved to 40% from 15%. Losses before goodwill fell to 1.9 million from 3.3 million even after one-off restructuring costs.

Dubens said that as well as boosting the customer base, the recent acquisition of XTML, a web hosting business, has brought skills into the company in software from US giant Oracle, which in turn has enabled GX to win business from larger companies and local authorities.

There has been conflicting activity from two shrewd investors in the company this month. A-rated Roger Whiteoak sold 435,000 shares from his Framlington UK Smaller Companies holding, leaving it with 4 million shares or 0.31% of the now 84 million company. He also sold 3.3 million shares from the Throgmorton Trust, leaving it with 45 million shares or 3.53% of the company.

However AAA-rated Patrick Evershed added 3.1 million shares to his New Star Select Opportunities fund's holding early this month to take it to 8.2 million shares or 0.64%.

Shares are currently up 0.125p at 6.75p. Citywire tipped them at the end of August at 5.625p.

Citywire Verdict: As we pointed out last month, GX spotted a 'unique moment in history' to create a business that is the beneficiary of the massive over-investment made by young companies in the past four years – the combined investment in the companies now owned by GX is a massive 400 million.

In addition, two well-known billionaire investors, Warren Buffett and Carl Icahn, have recently, and atypically, invested in the alternative telecoms sector, Buffet in US telco Level 3 and Icahn in XO Communications while also bidding for bankrupt telecoms provider Global Crossing.

Citywire has heard that there could be more news from GX by the end of the week, which sounds like another customer-boosting investment on the cards. There are still plenty of risks attached in this sort of business, but profitability is apparently not too far off and the company has a lot going for it. Still worth a dabble.ENDS.

Still worth a dabble, your telling me.

gf.

Thanks for the posting GF. It sure is a good read. I know the management of the company pretty well and they all have a good head on their shoulders. I am a strong believer of this company.

gf, what do you base the 8.5p target on?

Bought for long term myself.Too many people look for quick profit exactly what the marketmakers are looking for(notice the way they have manipulated the price in the last two weeks) This company is buying large asset companies at cheaper prices expanding its own asset value and making itself a target for takeover by bigger companies in the same market.

Yes, I have bought GXN also for longer term as I also have of RTD.

Intend to hold both for at least 6-12 months and with GXN even longer maybe.

Hope both are at least double in price by then (esp RTD as i bought them at 13p!!!)

I do have confidence in both companies though and expect GXN to be several times its share price eventually

scotinvestor,thats exactly my outlook.

GX Networks gained 0.12p to 6.25p amid rumours that the acquisitive telecoms group has another deal in the pipeline - a 65m takeover of a web hosting unit once owned by disgraced telecoms group WorldCom.

hurrah!

At last a move above the 6.5p bid mark

We could see a RNS in the morning if the rumours have any substance - more aquisitions have always been the strategy so lets see if GXN have moved up a gear...

FF

At last! One of my shares moving up in the right direction.

A long term buy for me though so plenty of time to watch this baby grow.

i have just bought more shares in this company know total holdings 415000 shares prices target for me is 15-20p

god willing

if my calculations are correct within a 7 to 10 year period these shares could exceed a target price of 1.46 and 20 year taget off 4.94/ 6.25

Would make me an extremely rich man ................ohh baby !

how can you possibly predict 1.46 exactly?
Jules thought they would be a 1 in a years time.

Does anyone have realistic price in say 6 months to a years time. Obviously, breaking into profit will shoot price up to. As will more acquisitions etc. And maybe a takeover bid as they get more established!
Then we will be rich.

Hi all,

Havenot been contributing a lot lately on the BB's ...have been monitoring closely...

Still holding all my GX networks and RTD shares which I epect to move much further year end-RTD target remains with 15p upto 30p in my books. Company news would boost rating higher...

GX Network moves as MM's see fit I suppose it moved into new territory today on little buying...BUT - perhaps all the big sellers have now changed hands?

Tmorrow and early next week should naturally see the gains followed up, the rise took place in last40 mins b4 market close, I see a rise to 10p, from here...

Plantec -GF- Time to fillya boots??

Good luck to us all - nothing is ever certain...


Ta.
Jules99.

Scotinvestor

I didn't quote an exact price or 1.46 i said "Exceed" This is mainly due to the capacity of volumised traffic and power they are accumulating within the telecoms/ service provider market across europe and possibly even on a global scale. Dubens has many business interests and surely somewhere anlong the line has a cunning plan up his sleave.

I can quite clearly invisage them being within the top three of companies providing such services throughout the European basin.

Also if you look at the value of telecom/ service proder companies say five years ago.....boy have they had the shit kicked out off them ten times over.

This market sector is now as low as it can go and it's time to start buying into them generally.

Take companies like Cable and wireles, Rueters, Colt and many more five years ago they were in teens !

you'll see

BIG NEWS EVERYONE!!!!!!!!!!
SCOTT INVESTOR - YOUR GOING TO LIKE THIS ONE...!

I know the company PIPEX -EXCELLENT REPUTATION IN FACT A LOT OF PEOPLE KNOW OF THEM...This is gonna be worth every penny of the ride...
GOODBYE GX WELCOME PIPEX EVERYONE...

3 October 2003




GX Networks plc

('GX Networks' or 'the Company')

Proposed acquisition of Pipex Internet Limited ('Pipex')

Proposed Placing of 443,200,000 Shares raising 27.7million

Proposed Board appointment

Proposed name change to Pipex Communications plc

Notice of Extraordinary General Meeting

GX Networks plc, the telecoms network operator and provider of business
broadband solutions, has agreed to acquire Pipex for a total consideration of
approximately 55 million and has effected a successful institutional Placing
raising approximately 27.7 million, both are subject to approval of
Shareholders at an EGM which has been convened for 27 October 2003. Following
completion of the Acquisition GX Networks will be renamed Pipex Communications
plc to leverage fully the Pipex brand.

The Pipex brand has a twelve-year track record and is widely recognised in the
UK. As at the end of June 2003 Pipex had about 6 per cent of the total UK ADSL
market and approximately over 10 per cent market share of non-BT plc owned ADSL
lines. Pipex provides a portfolio of ISP services to its 119,000 strong
customer base consisting of small corporates, SMEs and residential customers.

Pipex has been profitable and cash generative under its managing director David
Rickards, whose family owns 100 per cent of its shares. During the year ended
31 May 2003 the turnover of Pipex was approximately 31.6 million, EBITDA was
9.9 million and pre-tax profits were 10.1 million. As of today Pipex has
approximately 20 million of cash in the bank.

Pursuant to the Acquisition Agreement, the Rickards family has agreed to sell
and GX has agreed to purchase, subject to certain conditions, the entire issued
share capital of Pipex. The approximately 55 million consideration payable for
the shares of Pipex will be satisfied by the allotment of 5 million
Consideration Shares to the vendors and the payment of approximately 50 million
in cash on completion.

It is intended that the cash consideration is to be financed through a new debt
facility of approximately 15 million, the Placing, and approximately 10
million from the existing cash resources of the enlarged Group subject to a
financial assistance whitewash under sections 151 to 158 of the Companies Act
1985 to be effected prior to completion of the Acquisition.

In addition to the acquisition of Pipex, GX Networks has raised 27.7 million by
way of a placing with institutional and other investors, underwritten by Collins
Stewart Limited, of 443,200,000 shares at a placing price of 6.25p. It is
expected that the New Ordinary Shares the subject of such placing will be
admitted to trading on the Alternative Investment Market on 28 October 2003.
The proceeds of the Placing will be used to fund part of the acquisition
purchase consideration.

GX Networks has acquired three companies since the acquisition of Transigent in
October 2002. The acquisitions have been completed against the backdrop of
consolidations in the alternative telecommunication providers market which the
Company expects to continue throughout the remainder of 2003 and into 2004.
These acquisitions have also given GX Networks an enlarged product portfolio
across access, hosting security, VPN's, voice services and an enhanced customer
base. Following this transaction GX Networks will have a customer base of over
140,000 up from 600 in October 2002. GX Networks believes it is now well
positioned to further develop its business through both acquisition and organic
growth.

Peter Dubens, Chairman of GX Networks, said: 'This is an important acquisition
in the development of GX Networks as it allows us to become cash flow positive
immediately and it enables us to rebrand the entire group as Pipex, which is one
of the strongest brand names in the sector. Furthermore, it will improve the
mix of products that we sell, as Pipex has established a large broadband
customer base.'

It is proposed that David Rickards will join the Board in an executive capacity
on completion of the Acquisition. David Rickards is a highly successful
entrepreneur with a strong background in business processes and accounting.

David Rickards said: 'We needed an alliance with a larger organisation to take
our business to the next stage. GX, with its highly resilient network presence
and a culture similar to ours, is the right choice for Pipex. I am delighted
that I will be filling a senior executive role in the combined organisation
going forward, and that the Pipex brand name is to be maintained.'

Matters for disclosure under paragraph (f) of Schedule 2 of the AIM Rules with
respect to the appointment of David Peter Rickards as a Executive Director of GX
Networks plc:

Full name: David Peter Rickards
Age: 37
Current directorships: Pipex Internet Limited
Waycourt Estates Limited
Directorships held within the Highway Response Limited
last 5 years:

There are no other matters that are required to be announced with regards to
this appointment.

Copies of the documents relating to the acquisition and placing will be
available for inspection during usual business hours on any weekday (Saturday
and public holidays excepted) for a period of 22 days after the date of this
document at the offices of SJ Berwin, 222 Grays Inn Road, London WC1X 8XF.



- Ends -



For further information:


GX Networks plc
Peter Dubens, Chairman Tel: +44 (0) 20 7766 6909

www.gxn.net
Collins Stewart
Stuart Lane, Corporate Finance Tel: +44 (0) 20 7523 8310

www.collins-stewart.com
Investec Investment Banking
Chris Godsmark Tel: +44 (0) 7970 406 784


Media enquiries:

Bankside
Henry Harrison-Topham / Julian Bosdet Tel: +44 (0) 20 7444 4141
henry.ht@bankside.com www.bankside.com


Photography of Peter Dubens in jpeg format can be obtained from Bankside.


Notes to editors:

GX Networks plc is a telecoms network operator and provider of business
broadband solutions. The Company is listed on the Alternative Investment Market
(AIM) and prior to March 2003 was known as Zipcom plc.

Since 31 December 2002 GX Networks has undertaken a number of strategic
acquisitions as part of a structured acquisition programme designed to grow the
Company significantly.

On 18 July 2003 GX Networks acquired XTML Limited ('XTML') and Compulink
Information eXchange Limited ('CIX'), companies which had previously formed part
of the Telenor Business Holdings UK Limited group ('Telenor').

CIX's principal focus is the provision of connectivity services to a broad UK
customer base, offering leased lines, ADSL, dial-up and conferencing services.
XTML was engaged in the provision of application and hosting solutions to both
the UK public and private sectors, including County Councils, and major multi
sited corporations.

The acquisition of CIX and XTML complemented the existing business of GX
Networks and has provided customers with a greater choice of hosting locations
and new services.

CIX and XTML achieved unaudited aggregate turnover of 11 million for the year
ended 31 December 2002 and, as a part of Telenor, did not report a profit.

The total consideration payable in respect of these acquisitions of XTML and CIX
was 1.0 million, which was satisfied entirely by the allotment on 14 August
2003 of 20,366,599 Shares at a price of 4.91p.

On 28 August 2003 GX acquired Firstnet Services Limited for a total
consideration of 4.3 million following a successful institutional placing which
raised approximately 12 million net of expenses.

Leeds-based Firstnet was founded in 1996 and provides hosting, leased lines,
DSL, WDSL, and connectivity services to a range of SME and major corporate
customers. During the year ended 31 August 2002 the turnover attributable to
Firstnet was approximately 7.4 million and the attributable EBITDA was 1.1
million. The value of the net assets of Firstnet at that date was approximately
4 million. The acquisition of Firstnet was satisfied by cash consideration of
3.2 million on completion and the allotment of 22,088,353 Shares at a price of
4.98p per share, which are to be allotted no sooner than seven months following
completion.

The Firstnet data centre in Leeds further enhances GX Networks's market position
in the North of England and provides an additional 20 points of presence (PoPs).
This transaction has taken GX Networks customer base to more than 20,000
customers.

The acquisition of Firstnet has also brought further diversification to GX's
product range including additional hosting capacity and new wireless products.




This information is provided by RNS
The company news service from the London Stock Exchange

Bloody hell! The bought Pipex? Pipex are one of the oldest and most established players in the internet market. I'd only have been more surprised if they'd announced they we're buying Demon!

This has the potential to turn them into a household name.

GET this they MAKE....MAKE...MAKE (that was in case you misread read it properly) 10 million quid profit a year.......on a turnover of 30million!

Thats 33%...I'm I missing something...???

They have 20million in bank cash...I'm I missing something....???


Looking real good I'd say...

Remember that name - PIPEX.

jules99.

GX Networks plc

('GX Networks' or 'the Company')

Proposed acquisition of Pipex Internet Limited ('Pipex')

Proposed Placing of 443,200,000 Shares raising 27.7million

Proposed Board appointment

Proposed name change to Pipex Communications plc

Notice of Extraordinary General Meeting

GX Networks plc, the telecoms network operator and provider of business
broadband solutions, has agreed to acquire Pipex for a total consideration of
approximately 55 million and has effected a successful institutional Placing
raising approximately 27.7 million, both are subject to approval of
Shareholders at an EGM which has been convened for 27 October 2003. Following
completion of the Acquisition GX Networks will be renamed Pipex Communications
plc to leverage fully the Pipex brand.

The Pipex brand has a twelve-year track record and is widely recognised in the
UK. As at the end of June 2003 Pipex had about 6 per cent of the total UK ADSL
market and approximately over 10 per cent market share of non-BT plc owned ADSL
lines. Pipex provides a portfolio of ISP services to its 119,000 strong
customer base consisting of small corporates, SMEs and residential customers.

Pipex has been profitable and cash generative under its managing director David
Rickards, whose family owns 100 per cent of its shares. During the year ended
31 May 2003 the turnover of Pipex was approximately 31.6 million, EBITDA was
9.9 million and pre-tax profits were 10.1 million. As of today Pipex has
approximately 20 million of cash in the bank.

Pursuant to the Acquisition Agreement, the Rickards family has agreed to sell
and GX has agreed to purchase, subject to certain conditions, the entire issued
share capital of Pipex. The approximately 55 million consideration payable for
the shares of Pipex will be satisfied by the allotment of 5 million
Consideration Shares to the vendors and the payment of approximately 50 million
in cash on completion.

It is intended that the cash consideration is to be financed through a new debt
facility of approximately 15 million, the Placing, and approximately 10
million from the existing cash resources of the enlarged Group subject to a
financial assistance whitewash under sections 151 to 158 of the Companies Act
1985 to be effected prior to completion of the Acquisition.

In addition to the acquisition of Pipex, GX Networks has raised 27.7 million by
way of a placing with institutional and other investors, underwritten by Collins
Stewart Limited, of 443,200,000 shares at a placing price of 6.25p. It is
expected that the New Ordinary Shares the subject of such placing will be
admitted to trading on the Alternative Investment Market on 28 October 2003.
The proceeds of the Placing will be used to fund part of the acquisition
purchase consideration.

GX Networks has acquired three companies since the acquisition of Transigent in
October 2002. The acquisitions have been completed against the backdrop of
consolidations in the alternative telecommunication providers market which the
Company expects to continue throughout the remainder of 2003 and into 2004.
These acquisitions have also given GX Networks an enlarged product portfolio
across access, hosting security, VPN's, voice services and an enhanced customer
base. Following this transaction GX Networks will have a customer base of over
140,000 up from 600 in October 2002. GX Networks believes it is now well
positioned to further develop its business through both acquisition and organic
growth.

Peter Dubens, Chairman of GX Networks, said: 'This is an important acquisition
in the development of GX Networks as it allows us to become cash flow positive
immediately and it enables us to rebrand the entire group as Pipex, which is one
of the strongest brand names in the sector. Furthermore, it will improve the
mix of products that we sell, as Pipex has established a large broadband
customer base.'

It is proposed that David Rickards will join the Board in an executive capacity
on completion of the Acquisition. David Rickards is a highly successful
entrepreneur with a strong background in business processes and accounting.

David Rickards said: 'We needed an alliance with a larger organisation to take
our business to the next stage. GX, with its highly resilient network presence
and a culture similar to ours, is the right choice for Pipex. I am delighted
that I will be filling a senior executive role in the combined organisation
going forward, and that the Pipex brand name is to be maintained.'

Matters for disclosure under paragraph (f) of Schedule 2 of the AIM Rules with
respect to the appointment of David Peter Rickards as a Executive Director of GX
Networks plc:

Full name: David Peter Rickards
Age: 37
Current directorships: Pipex Internet Limited
Waycourt Estates Limited
Directorships held within the Highway Response Limited
last 5 years:

There are no other matters that are required to be announced with regards to
this appointment.

Copies of the documents relating to the acquisition and placing will be
available for inspection during usual business hours on any weekday (Saturday
and public holidays excepted) for a period of 22 days after the date of this
document at the offices of SJ Berwin, 222 Grays Inn Road, London WC1X 8XF.



- Ends -

I must apologize to you all out their as jules beat me to the news release. Anyway it's nice to read the good news twice. Next time before I post I will read others first lol !!! Again sorry

a repeat...

i think u'll find i got there first...