Island Press Limited has lost the lucrative contract it has held for the past 40 years to publish the Bermuda Telephone Directory, it was announced last night.

Bermuda Telephone Company (BTC) said it is handing the multi-million dollar annual contract to publish the directory to BTC Advanced Communications Ltd (BTC ACL), a subsidiary of KeyTech, in July.

Island Press, which publishes the Bermuda Sun, was stunned by the announcement, which ironically comes just weeks after the company took over the publication of telephone directories in 13 Caribbean countries.

Randy French, the president and CEO of Island Press, said last night: "I am terribly disappointed. Island Press has developed the Bermuda Telephone Directory into the most successful directory of its size in the world as evidenced by the awards that it has won this year.

"And further, Island Press has taken over publication of directories in 13 countries in the Caribbean. It is ironic that we can be selected to win those opportunities outside Bermuda and at the same time lose our own country's directory."

The contract to publish 75,000 telephone directories for BTC is worth several million dollars each year and has been held by Island Press since 1961.

The Royal Gazette understands that Gary Taylor, a former executive at Island Press who was sacked last year for allegedly planning to jump ship and set up a rival business as the company was preparing to expand, is to play a key role in BTC Advanced Publications Ltd..

In April this year, Island Press issued a writ against Mr. Taylor, the former general manager of the company, and Ciaran Horgan, the former Island Press accountant. The writ is also against a company called Global Data and Media Ltd..

The Royal Gazette reported in April that it was understood that both men had been sacked from Island Press because they were planning to leave the company to set up a rival operation when Island Press was in the process of setting up companies to expand the publication of telephone directories and yellow pages in the Caribbean and United States.

In a statement issued yesterday, BTC, which itself is a KeyTech subsidiary, said: "This strategic initiative will allow BTC to have input in all aspects of the publishing process of Bermuda's original and most comprehensive directory."