TownPages UK Ltd., NCR Limited end contract

ALTON, England - TownPagesNet.com plc (AMEX:

The contract provided for NCR to supply TPUK with 3,500 Ci20, Internet enabled, touchscreen kiosks. The agreement required TPUK to purchase a predetermined number of these kiosks at specified time intervals. Failure to meet the terms of that agreement could have resulted in a penalty to the company totaling £703,286 or $1 million.

Subsequent to this contract being signed, TPUK redefined its business objectives to focus on selling e-commerce and custom kiosk solutions as well as developing a "free to browse" model for its kiosk network. This realignment of business objectives rendered the original agreement between the two parties inappropriate.

TPUK intends to continue to use NCR as a kiosk supplier and is now able to offer kiosks from NCR's entire product range. This is consistent with TPUK's new business direction offering custom kiosk solutions.