(Issued 17 April, 2009) The following statement was issued by eircom Management to staff on Thursday evening 16 April 2009.

 Taemasbridge Proposal

Earlier today, BCM announced that it was evaluating a proposal received from "TaemasBridge", a company founded by Rob Topfer and other former Babcock & Brown executives.

Mr Topfer proposes to replicate the Babcock & Brown model for BCM and eircom, by replacing the Babcock & Brown vehicle that managed BCM (under a management agreement that BCM is in the process of terminating) with a new management vehicle, TaemasBridge. TaemasBridge would be led by the former Babcock & Brown team that managed BCM and its interest in eircom since 2006, all of whom have exited BCM and eircom in recent months.

According to the proposal document, TaemasBridge is based on the principle "use crisis to create value", and on extracting cash from eircom in the form of management fees. There is no plan to invest in eircom.

eircom does not support the TaemasBridge proposal and believes it is damaging to eircom’s interests and its future. The model that eircom has experienced since 2006 has failed the company, its employees and its investors, and has seriously damaged its credibility. The interests of eircom and its stakeholders are absent from TaemasBridge and lessons have not been learned.

In recent weeks, eircom has embarked on a significant programme of initiatives, led by the Acting Chief Executive, Cathal Magee, that are designed to underpin the company’s financial future and ensure it is positioned strategically to contribute effectively to the economic recovery agenda. eircom is meeting the need for change, is working well with the current BCM team and the ESOT, and is determined, in the interests of all stakeholders, to deliver a sustainable, long-term vision and strategy for the company and its role in the Irish economy.

ENDS