Almost 60 percent of KeyTech Ltd. preferred shares have been taken up by the company's noteholders, it was announced on Friday.

And the remaining noteholders have until December 2 to convert their notes into preferred shares, the company said in a statement.

KeyTech, which won approval for the conversion over opposition from some foreign shareholders last month, said it has issued 1,548,596 eight percent cumulative redeemable convertible preferred shares of KeyTech worth $15,485,960 in exchange for 1,032,466 7.75 percent redeemable notes of KeyTech subsidiary Bermuda Telephone Company Limited following the first closing of the Exchange Offer.

The Preferred Shares are listed on the Bermuda Stock Exchange and have commenced trading under the symbol "KEYP BH".

Bermuda Telephone Company Limited said on Friday that it will redeem all of the Bermuda Telephone Company Notes remaining and outstanding as of December 15 together with accrued interest on the Notes to that date. As a result BTCintends to delist the Notes ("BTC7.75 BH") from the Bermuda Stock Exchange.

"As the Bermuda Telephone Company has decided to redeem and delist the Bermuda Telephone Company notes, the board of directors of KeyTech have agreed to offer any remaining Bermuda Telephone Company noteholders a second opportunity to exchange their Notes for KeyTech Preferred Shares. This second and final offering will close at 2 p.m. on December 2, 2002, the company said.

LOM Capital is acting as Corporate Finance Advisor and Listing Sponsor for KeyTech Limited regarding the exchange offer and can be contacted by Bermuda Telephone Company Noteholders for further details on this exchange offering at (441) 292-9271 or by e-mail at KeyTechOfferlom.bm.