RNS Number:5611I
EuroTelecom Communications Inc
15 August 2001


FOR IMMEDIATE RELEASE                         15th August 2001

                       EuroTelecom Communications Inc.

London, England, 15th August 2001 - EuroTelecom Communications Inc.
("EuroTelecom Inc." U.S. Trading Symbol-EUTC; Class A stock quoted on the
Alternative Investment Market ("AIM") of the London Stock Exchange as ETMA)
announces that at a meeting of the Board of Directors of EuroTelecom held
today, 15th August 2001, Mr. Christopher Akers resigned as non-executive
Chairman and from the office of Director; Mr. Graham Ford resigned as Company
Secretary and from the office of Director, and Dr. John Spackman and Dr. Chris
Sanger resigned from the office of Director, all with immediate effect.
EuroTelecom Inc. announces further the cessation of all operations whatsoever
of the company.

EuroTelecom Inc. was admitted to AIM on 5th April 2000 by way of a placing of
shares that raised #15,200,000 (net of expenses). This was designed to fund,
primarily through its principal operating subsidiary, EuroTelecom Corporation
Limited ("ETC Limited"), strategic acquisitions, the development of new and
existing businesses and to provide additional working capital. Towards the end
of February 2001, the directors of EuroTelecom Inc. determined that ETC
Limited had insufficient cash to carry on trading. On 23rd February 2001, ETC
Limited was placed into Administration and Roger Marsh and Ian Stokoe of
PricewaterhouseCoopers were appointed joint administrators. By announcement
dated 23 February 2001, the London Stock Exchange suspended trading of
EuroTelecom Inc.'s Class A stock on AIM. Following a six month suspension from
trading, at the request of EuroTelecom Inc., the London Stock Exchange will
cancel the admission of EuroTelecom to AIM on 23rd August 2001.

Following the suspension of EuroTelecom's trading on AIM, and the
administration of ETC Limited, Chris Akers, Graham Ford, John Spackman and
Chris Sanger have co-operated fully with both the Administrators of ETC
Limited and other bodies investigating the demise of EuroTelecom Inc. and ETC
Limited. Furthermore, an investigative committee of the Board of EuroTelecom
Inc. was established to investigate officers, directors and advisers of the
company who may have breached duties owed to it. That investigation was halted
due to the similar investigation being conducted by PricewaterhouseCoopers and
due to the financial position of EuroTelecom Inc.

Since 23rd February 2001, the Board of EuroTelecom Inc. have undertaken a
number of discussions with potential investors and strategic partners in an
effort to secure some value for shareholders by an assessment of the value
attributable to the tax loss position in the EuroTelecom group of companies
and the EuroTelecom Inc. dual listing. These efforts have proved unsuccessful
to date and, in light of current conditions of the financial markets and the
financial position of EuroTelecom Inc., the Board - based on professional
advice - has determined that there is nothing more it can do to realise any
value for shareholders.

"I am aware that PricewaterhouseCoopers is undertaking a full investigation
into a number of matters concerning the rapid demise of ETC Limited following
EuroTelecom Inc.'s flotation on the AIM market and that this investigation is
continuing," said Chris Akers. "I invested heavily in EuroTelecom Inc., and I,
along with many others, feel totally let down by this turn of events. My
fellow board members and I have explored many options in an attempt to
generate some value for shareholders from this situation. However, in view of
the facts that the principal operating company is in administration,
EuroTelecom Inc. has no trading business, and that the financial position of
the company is such that it has not proven possible for the Board to reverse
any company into the shell of EuroTelecom Inc., we have no choice now but to
cease all activities in the company."
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