(Alothon Group) September 1, 2011 – Alothon Group LLC, a leading private equity firm that invests in middle market growth companies in Brazil, announced that is has completed the acquisition, through its Fund II, of the MTel Group. The MTel Group, headquartered in Sao Paulo State, is a leading provider of outsourced hardware and network services for ICT in Brazil, and is the owner of Aynil Solucões Ltda and MTel Tecnologia Ltda. The MTel Group has reported continuous growth over the past several years, generating revenues of approximately R$100 million in 2010, a 15% increase as compared to 2009.

Under terms of the agreement, former partner-managers of MTel will manage the group, ensuring business continuity. Mauricio Blanco will remain as the CEO.

“The MTel Group holds a unique position in the Brazilian market, with an organization capable of developing and implementing large, technologically complex projects across Brazil,” said Ettore V. Biagioni, Managing Partner of Alothon. “The two companies comprising the Group complement each other, with MTel serving mostly private clients and Aynil focused on the public sector. We are pleased to be able to help further their expansion plans and support a leading management team.”

Mr. Mauricio Blanco, CEO of MTel Group, said, “We anticipate being able to achieve our goal of tripling revenues by 2015 by expanding and consolidating the MTel Group into one of the leading Latin American ICT providers. While our goals are ambitious, we believe they are achievable, especially given the excellent prospects in the Datacenters business, the planned upgrading of public and corporate networks over the next several years, along with the opportunities related to the 2014 World Cup and 2016 Olympics in Brazil. The scale of the business achieved by the MTel Group, together with the operational value added and capital infusion from Alothon, provide us with the resources necessary to achieve our objectives.”

About the MTel Group
The MTel Group, encompassing all of the key market and client segments in Brazil, is organized in two entities: MTel Tecnologia, serving the telecommunication operators, ISPs and the corporate market of medium and large companies, and Aynil Soluções, which serves the Public sector. With projects throughout the entire country, the Mtel Group offers a differentiated model of network outsourcing. The Group’s core competencies include integration, network rental, installation, support, remote management and technical assistance 24/7 through its Network Operating Center and Security Operating Center located in the Group’s headquarters in Barueri in the Greater São Paulo area. The Group also maintains two additional offices: Brasilia and Rio de Janeiro.

The MTel Group has strategic partnerships with global manufacturers like Cisco Systems, Alvarion and SonicWall, among others, and is well positioned to assist organizations to implement, integrate, operate and outsource converging voice, data, images and security networks in Brazil. The Group employs teams of network engineers and technicians accredited by the main international certifications, adding value to the Group’s operations. www.mtel.com.br

About Alothon Group LLC
Alothon Group LLC is a private equity firm dedicated to Latin American investments. Over the past 15 years, Alothon has invested in more than 30 companies in Latin America. The firm is currently focused on mid- to late-stage buyouts in Brazil, with its investment strategy focused on acquiring controlling positions in businesses with strong franchise value that are expected to benefit from the country’s growing middle class and business outsourcing. Alothon works closely with the management of companies in which it invests and brings a combination of strategic, financial, operating and governance expertise. For additional information, please visit www.alothon.com