The Cloud Announces Strategic Acquisition in Germany

The Cloud, Europe´s leading mobile wireless broadband service
provider, today announced it has acquired 100% of the share capital of
GlobalAirNet AG (Ganag), Germany´s leading provider of Wi-Fi services
to four and five star hotels.

Ganag, based in Munich Germany, has over 5,300 Wi-Fi access points
located in over 300 hotels, including Marriott, Swiss Hotel and Crowne
Plaza, with further expansion contracted in the hotel sector. The
Ganag service provides high quality in room and overall hotel Wi-Fi
coverage for business and consumer access with a fully integrated
billing service for in-room charging and voice over Wi-Fi for hotel
staff.

The Cloud is Europe´s leading independent mobile wireless
broadband service provider with over 12,000 network locations and over
20,000 access points in the UK, Germany, Sweden, Denmark, Norway and
The Netherlands.

Steve Nicholson, The Cloud´s Chief Executive, confirmed the
acquisition of Ganag was an important building block in respect of
consolidating the German market, and provides the foundation, brand
and credentials to accelerate The Cloud´s expansion into the European
hospitality sector.

"The Cloud is a fast expanding European mobile wireless broadband
service provider with market leading positions in the UK and Sweden
and now, as a result of this transaction, we are also the leading
independent Wi-Fi operator in Germany.

Our aspiration is to provide high quality, low cost mobile access
to the internet which we achieve by building our networks in locations
where the public gathers in large numbers or where the business
traveller needs a quality data connection, such as in hotels. We
predict that the mobile industry will continue to wrestle with poor
performing data networks over the coming 12 to 18 months. We therefore
see a significant opportunity for The Cloud as the imagination of the
mass market is captured by the arrival of new multimedia Wi-Fi enabled
mobile devices throughout 2008."

The Cloud confirms that Mr. Achim Moehrlein, Managing Director and
Co-Founder of Ganag, will be immediately appointed as Managing
Director of The Cloud´s combined German business.

"The Cloud brings scale and enables the expansion of Ganag´s hotel
services across Europe. For the past 5 years we have focused Ganag on
building a strong position as a quality service provider in the German
hospitality sector, with specific focus on four and five star hotels
and specifically services required by the growing number of business
travelers to Germany", said Mr. Moehrlein.