UNLOCKING A WORLD OF CONNECTIONS Six Month Report 2015

1 U N L O C K I N G A WO RL D OF CON N ECT IO N S | | KeyTech Six Month Report 2015 2 Consolidated Balance Sheet 3 - 4 Consolidated Statement of Comprehensive Loss 5 Consolidated Statement of Changes in Equity 6 Consolidated Statement of Cash Flow 7 - 11 Notes to Consolidated Financial Statements 12 Board of Directors, Company Officers & KeyTech Group Executives C o n t e n t s

2 U N L O C K I N G A WO RL D OF CON N ECT IO N S | | KeyTech Six Month Report 2015 Consolidated Balance Sheet (Unaudited) as at September 30, 2015 and March 31, 2015 September 30, 2015 March 31, 2015 ASSETS Current assets Cash and cash equivalents (excluding bank overdraft) Accounts receivable Materials Assets held for sale Prepaid expenses and other current assets $ 4,303,586 6,613,952 52,601 - 2,161,654 $ 3,717,631 8,413,539 33,269 948,471 4,014,261 13,131,793 17,127,171 Non-current assets Available-for-sale financial assets Loan receivable Property, plant and equipment Investments in associates Intangible assets 982,179 - 98,954,956 27,504,468 12,328,458 1,109,546 5,000,000 117,527,905 25,760,775 80,419,866 Total assets $ 152,901,854 $ 246,945,263 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Accounts payable and accrued liabilities Bank overdraft Foreign tax liabilities Interest payable Unearned income $ 11,056,947 1,966,982 187,444 534,634 4,557,127 652,637 6,428,571 - $ 13,547,836 779,450 168,500 522,578 6,099,098 687,116 6,428,571 83,333 Preferred share redemption Loan payable Liabilities held for sale amounts unclaimed 25,384,342 28,316,482 Non-current liabilities Loan payable Sub-ordinated debt Other long-term liabilities 32,142,858 24,700,000 1,868,230 35,357,143 24,700,000 - Total liabilities EQUITY Equity attributable to owners of the parent Share capital Share premium Contributed surplus Shares held for issue Other comprehensive income Retained earnings $ 84,095,430 $ 88,373,625 3,806,197 86,058,361 22,196,339 7,493,110 14,281,695 (67,267,684) 3,806,197 86,058,361 20,994,716 7,493,110 14,389,751 18,915,295 66,568,018 151,657,431 Non-controlling interests Total equity Total liabilities and equity 2,238,406 6,914,207 68,806,424 158,571,638 $ 152,901,854 $ 246,945,263 The accompanying notes are an integral part of these consolidated financial statements

3 U N L O C K I N G A WO RL D OF CON N ECT IO N S | | KeyTech Six Month Report 2015 Consolidated Statement of Comprehensive Loss (Unaudited) for the six months ended September 30, 2015 and 2014 2015 2014 OPERATING REVENUES Television revenues Data revenues Voice revenues Directory revenues Hardware and software revenues Other revenues $ 20,224,563 18,326,891 1,334,207 3,750,004 26,337 2,355,412 $ - 13,863,853 1,425,017 3,866,289 59,188 2,793,516 $ 46,017,414 $ 22,007,863 OPERATING EXPENSES Salaries and employee benefit expenses Staff termination costs Operations and maintenance expenses Depreciation and amortization General and administrative expenses Government taxes, fees and levies Impairment of assets 11,084,009 873,555 18,523,903 10,631,510 8,140,533 2,088,704 83,069,257 7,758,431 307,786 8,100,055 4,438,243 7,019,294 917,053 - $ (134,411,471) $ 28,540,862 Operating loss Share of income of associates Finance income Finance costs Gain (loss) on sale Loss on revaluation of investment Non-controlling interests Loss for the year from continuing operations (88,394,057) 3,350,209 52,662 (1,794,376) 595,174 (19,300) 26,708 (6,532,999) 4,325,472 39,535 (1,146,549) (19,307,523) - 84,404 $ (86,182,980) $ (22,537,660) DISCONTINUED OPERATIONS Profit for the period from discontinued operations Loss for the period - (86,182,980) 2,626,474 (19,911,186) $ $ Loss attributable to Equity holders of the company Non-controlling interests (86,156,272) (26,708) (19,826,782) (84,404) $ (86,182,980) $ (19,911,186) Earnings per share from continuing and discontinued operations attributable to owners of the parent From continuing operations From discontinued operations From loss for the period $ (5.66) - $ (1.54) 0.18 $ (5.66) $ (1.36) The accompanying notes are an integral part of these consolidated financial statements

4 U N L O C K I N G A WO RL D OF CON N ECT IO N S | | KeyTech Six Month Report 2015 Consolidated Statement of Comprehensive Loss (Continued) (Unaudited) for the six months ended September 30, 2015 and 2014 2015 2014 Loss for the period $ (86,182,980) $ (19,911,186) Other comprehensive (loss) income for the period: Discontinued operations Sale of subsidiary – defined benefit pension plan Sale of subsidiary – retirement augmentation plan - - 2,620,114 484,081 - 3,104,195 Items that may be subsequently reclassified to profit or loss Realized loss on available-for-sale-investments Changes in fair value of available-for-sale investments 6,300 (114,356) - 10,670 $ (108,056) $ 3,114,865 Other comprehensive (loss) income for the period Total comprehensive loss for the period $ (86,291,036) $ (16,796,321) Total comprehensive loss attributable to: Equity holders of the company Non-controlling interests (86,264,328) (26,708) (16,711,917) (84,404) $ (86,291,036) $ (16,796,321) Total comprehensive loss attributable to: Continuing operations Discontinued operations $ (86,291,036) - $ (22,526,990) 5,730,669 $ (86,291,036) $ (16,796,321) The accompanying notes are an integral part of these consolidated financial statements

5 U N L O C K I N G A WO RL D OF CON N ECT IO N S | | KeyTech Six Month Report 2015 Consolidated Statement of Changes in Equity (Unaudited) for the six months ended September 30, 2015 and 2014 Attributable to equity owners of the company Other comprehensive income (loss) Non-controlling Interest Share capital Shares held for issue Share premium Contributed surplus Retained earnings Total Total $ $ $ $ $ $ $ $ $ Balance - April 1, 2014 3,640,908 - 83,413,733 20,920,454 (2,724,868) 33,714,417 138,964,644 534,866 139,499,510 Loss for the period - - - - - (19,826,782) (19,826,782) (84,404) (19,911,186) Other comprehensive income: Changes in fair value of available-for-sale investments Re-measurement of defined benefit pension plan Re-measurement of retirement augmentation plan Comprehensive income for the period - - - - 10,670 - 10,670 - 10,670 - - - - 2,620,114 - 2,620,114 - 2,620,114 - - - - - - 484,081 484,081 484,081 - - - - 3,114,865 - - 3,114,865 3,114,865 Non-controlling interest arising on business combination - - - - - - (84,404) (84,404) (84,404) Issue of Shares - - - - - - 2,763,086 - 2,763,086 2,763,086 Dividends - - - - - (1,310,719) (1,310,719) (1,310,719) Balance - September 30, 2014 6,403,994 - 83,413,733 20,920,454 389,997 12,492,512 23,620,690 450,462 124,071,152 Balance - April 1, 2015 14,389,751 151,657,431 6,914,207 158,571,638 3,806,197 7,493,110 86,058,361 20,994,716 18,915,296 Loss for the period - - - - - (86,156,272) (86,156,272) (26,708) (86,182,980) Other comprehensive income: Realized loss - - - - 6,300 - - 6,300 6,300 Changes in fair value of available-for-sale investments - - - - (114,356) - - (114,356) (114,356) Comprehensive income for the period - - - (108,056) - (108,056) - - (108,056) Non-controlling interests Purchase of non-controlling interest - - - - - (26,708) - (26,708) (26,708) - - - - 1,201,623 - 1,201,623 (4,649,093) (3,447,470) Balance - September 30, 2015 3,806,197 7,493,110 86,058,361 22,196,339 14,281,695 (67,267,684) 66,568,018 2,238,406 68,806,424 The accompanying notes are an integral part of these consolidated financial statements

6 U N L O C K I N G A WO RL D O F CO NN E CT I ON S | | KeyTech Six Month Report 2015 Consolidated Statement of Cash Flow (Unaudited) for the six months ended September 30, 2015 and 2014 2015 2014 CASH FLOW PROVIDED BY (USED IN) Operating activities Loss for the period Adjustments for: Depreciation and amortization Bad debt expenses and impairment allowances Share of income of associates Net interest cost on pension plan Net interest cost on post-retirement medical plan Profit for the year from discontinued operations Impairment of assets Changes in items of working capital: Accounts receivable Materials Prepaid expenses and other current assets Accounts payable and accrued liabilities Foreign tax liabilities Unearned income Working capital acquired on business combinations Net cash generated from discontinued activities Net cash generated from (used in) operating activities Investing activities Repayments received on loans to associates Dividends received from associates Sale (purchase) of available-for-sale financial assets (Purchase) sale of property, plant and equipment Purchase of intangible assets Property, plant and equipment acquired on business combinations Intangible assets arising on business combinations Purchase of non-controlling interest Loan repaid (arising) on business combinations Net cash used for investing activities Financing activities Amount received on borrowing facility Amount paid on borrowing facility Amount received as subordinated debt Redemption of preferred shares Dividends paid on common shares Net cash (used) received for financing activities $ (86,182,980) $ (19,911,186) 10,631,511 638,820 (3,350,209) - - - 83,069,257 4,438,243 314,986 (4,325,472) 70,000 50,000 (2,626,474) - 1,439,675 (19,332) 1,857,040 (2,562,166) 18,944 (1,541,971) - - 1,581,732 172,716 837,890 1,589,499 13,784 (1,699,234) 4,649,782 6,025,382 $ 3,998,589 $ (8,818,352) - 1,606,517 19,311 (6,130,583) (240,697) - - (1,605,949) 5,000,000 704,983 1,602,929 (10,554) 33,254,954 (8,369,571) (27,466,705) (27,038,613) - (5,000,000) $ (1,351,401) $ (32,322,577) - (3,214,286) - (34,479) - 45,000,000 (27,500,000) 24,700,000 (1,515) (2,621,446) $ (3,248,765) $ 39,577,039 Decrease in cash and cash equivalents Cash and cash equivalents and bank overdraft - Beginning of period Cash and cash equivalents and bank overdraft - End of period $ $ (601,577) 2,938,181 $ $ (1,563,890) 5,701,954 $ 2,336,604 $ 4,138,064 The accompanying notes are an integral part of these consolidated financial statements

7 U N L O C K I N G A WO RL D OF CON N ECT IO N S | | KeyTech Six Month Report 2015 Notes to Consolidated Financial Statements (Unaudited) for the six months ended September 30, 2015 1. The Company and its regulatory framework KeyTech Limited (the “Company”) is incorporated in Bermuda with limited liability under the Companies Act 1981. The Company, through its subsidiaries and associates, is a supplier of information and communications services, providing a wide range of data, internet, voice, and media services. The Company is listed on the Bermuda Stock Exchange (“BSX”) and has operations in Bermuda and the Cayman Islands. The registered office is located at 30 Victoria Street, Hamilton, HM 12, Bermuda. 2. Accounting policies The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and IFRS Interpretations Committee (IFRIC) interpretations applicable to companies reporting under IFRS. The consolidated financial statements have been prepared under the historical cost convention, with the exception of land and buildings, which were revalued to market value on March 31, 2015, available-for-sale financial assets and financial assets and financial liabilities, which are recorded at fair value through profit or loss. The financial statements are presented in Bermuda dollars ($), which is the functional currency of the Company. The preparation of consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated f inancial statements are disclosed in note 3. In accordance with IFRS, BTC results were removed from the Statement of Operations for 2014/15 comparative financials. 3. Critical accounting estimates and assumptions Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 3.1 Critical accounting estimates and judgments The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (a) Allowance for impairment losses on receivables In determining amounts recorded for impairment losses in the financial statements, management makes judgments regarding indicators of impairment, that is, whether there are indicators that suggest there may be a decrease in the estimated future cash flows from receivables, for example, default and adverse economic conditions. Management also makes estimates of the likely estimated future cash flows from impaired receivables as well as the timing of such cash flows. Historical loss experience is applied where indicators of impairment are not observable on individually significant receivables with similar characteristics, such as credit risks. Net realizable value of materials Estimates of net realizable value are based on the most reliable evidence available at the time the estimates are made, of the amount the materials are expected to realize. These estimates take into consideration fluctuations of price or cost directly relating to events occurring after the end of the period, to the extent that such events confirm conditions existing at the end of the period. Estimates of net realizable value also take into consideration the purpose for which the materials are held. (b)

8 U N L O C K I N G A WO RL D OF CON N ECT IO N S | | KeyTech Six Month Report 2015 Notes to Consolidated Financial Statements (Unaudited) for the six months ended September 30, 2015 (c) Residual value and expected useful life of property, plant and equipment The residual value and the expected useful life of an asset are reviewed at each financial year-end, and, if expectations differ from previous estimates, the change is accounted for. The useful life of an asset is defined in terms of the asset’s expected utility to the Company and its subsidiaries. The recoverable amount of property, plant and equipment is dependent upon management’s internal assessment of future cash flows from the individual asset or from the cash generating units to which the asset belongs. In addition, the estimate of the amount recoverable from future use of those units is sensitive to the discount rate used. Impairment of investments in associates The carrying value of investments in associates is assessed for impairment using benchmark multiples of earnings before interest, depreciation and amortization (“EBIDA”) and discounted cash flows of the Company, based on actual and forecasted results over a period of up to five years. The discount rate and benchmark multiples are assessed individually for each investment depending on the nature of its business, maturity of the business and expected future revenue growth rates. If the recoverable value is less than the carrying value of the investment in associate, an impairment expense is recognized in the period to reduce carrying value to its recoverable value. The following are key assumptions used in the impairment assessment calculations: (d) Benchmark multiples of EBIDA Discount rate applied in cash flow projections Impairment of goodwill and intangible assets 5¾ - 12 8% (e) Determining whether goodwill and intangible assets are impaired requires an estimation of the recoverable value using value in use, of the cash-generating units to which the goodwill and intangible assets have been allocated. The cash generating unit fair value is assessed using the discounted cash flows of the cash generating unit, based on financial budgets approved by management over a period of up to five years with a terminal value at the end of the five year period. Tangible assets are deducted from the estimated enterprise value and the residual value is compared to the carrying value of goodwill and intangible assets. If the residual value is less than the book carrying value of goodwill and intangible assets, an impairment expense is recognized in the period to reduce the carrying value to its recoverable amount. Refer to Note 9. 4.Segment information Reportable segments correspond to the Company’s internal organizational structure. The Company operates the following reportable segments, which are managed as separate business units, as they operate in different industries and require different market strategies and technologies. The Company evaluates each segment’s performance based on its contribution to consolidated net income. The accounting policies of the reportable segments are the same as those described in note 2. Bermuda Cablevision Limited (trading as Logic Communications Ltd.) (“Logic”) – the company provides internet access and data internet products as well as long distance and local voice services and subscription television services in Bermuda through its coaxial and fiber network services. On July 16, 2015 the companies Logic Communications Ltd. and Bermuda Cablevision Limited merged. WestTel Limited (trading as Logic) (“Logic Cayman”) – provides fixed wireless, wireline voice and data services, and subscription television services in the Cayman Islands. Cable Co. Ltd. (“Cable Co”) – provides international data services on its submarine cable system between Bermuda and the United States. Bermuda Yellow Pages Limited (“BYP”) – provides print, on-line directory and digital marketing services. Yabsta (BVI) Limited (“Yabsta”) – provides on-line search capabilities, specializing in digital advertising.

KeyTech Six Month Report 20159 U N L O C K I N G A WO RL D OF CON N ECT IO N S | | Notes to Consolidated Financial Statements (Unaudited) for the six months ended September 30, 2015 Segment information CONTINUING OPERATIONS Logic Cayman Non-segment items Logic Cable Co. BYP Yabsta Total Six months ended September 30, 2015 Revenues from external customers Revenues from internal customers Depreciation and amortization Operating expenses Segment income (loss) Segment assets $27,742,245 556,992 4,911,364 22,479,755 908,118 $70,633,728 $13,785,571 26,760 4,047,241 12,139,669 (2,374,579) $70,753,355 $243,253 1,013,171 1,053,017 1,415,560 (1,212,153) $17,370,356 $3,758,622 49,804 14,301 3,050,585 743,540 $1,865,199 $24,000 30,000 125,867 73,197 (145,064) $881,067 $463,723 - 479,720 1,551,938 (84,102,842) ($8,601,851) $46,017,414 1,676,727 10,631,510 40,710,704 (86,182,980) $152,901,854 Non-segment items Logic Cayman Logic Cable Co. BYP Yabsta Total Six months ended September 30, 2014 Revenues from external customers Revenues from internal customers Depreciation and amortization Operating expenses Segment income (loss) Segment assets $11,631,875 700,208 1,808,412 8,935,990 1,587,681 $38,575,597 $6,264,876 26,760 1,938,199 7,821,145 (3,467,708) $70,965,731 $171,602 855,671 1,045,988 1,254,495 (1,273,210) $19,308,444 $3,839,062 138,804 12,693 3,049,969 915,204 $1,814,179 $27,000 27,000 125,867 100,387 (172,254) $1,132,800 $73,448 $22,007,863 1,748,443 4,438,243 24,102,619 - (492,916) 2,940,633 (20,127,373) $115,148,512 (22,537,660) $246,945,263 5. Dividends per share There were no dividends declared during the reporting period. See note 8 for a potential future special dividend, subject to Regulatory Authority approval of the ATN business transaction. 6. Related parties The following transactions were carried out with related parties: (a) Half year-end balances arising from sales / purchases of goods / services 2015 2014 Receivables from related parties: - Associates Payables to related parties: - Associates Sales to related parties: - Associates Purchases from related parties: - Associates $ $ 204,537 257,896 $ 10,596,816 $ 10,560,478 $ 189,305 $ 384,961 $ 142,102 $ 46,661 The payables relate mainly to a KeyTech Director who is a principal of one of the subordinated debt holders. The receivables from related parties arise mainly from sales transactions and are due one month after the date of sale. The receivables are unsecured in nature and bear no interest. No provisions are held against receivables from related parties (2014: Nil).

U N L O C K I N G A WO RL D OF CON N ECT IO N S | | KeyTech Six Month Report 201510 Notes to Consolidated Financial Statements (Unaudited) for the six months ended September 30, 2015 Goods are sold based on the price lists in force and terms that would be available to third parties. (b) Key management compensation Key management includes Directors (executive and non-executive) and members of Senior Management. The compensation paid or payable to key management for employee services is shown below: 2015 2014 Salaries and other short-term employee benefits $ 2,897,637 $ 3,442,100 (c) Loans to related parties 2015 2014 Loans to associates: At April 1 Loan repayments received Interest charged Interest payments received At September 30 $ 740,685 - 12,534 - $ 1,401,685 (680,462) 31,517 (24,520) $ 753,219 $ 728,220 The loans to associates were considered capital contributions to the associates and are included as ‘investments in associates’ on the face of the consolidated balance sheet. Advances under the loan facility to QuoVadis bear interest at 5% and are secured on the fixed and floating assets of QuoVadis. Interest relating to all associates loans is included as a component of ‘share of income of associates’ in the consolidated statement of comprehensive income. The promissory note to Cablevision Holding Limited was paid in full during the six months ended September 30, 2014. The promissory note was unsecured, had no set terms of repayment and bore interest at 9% per annum. No provision was required in 2015 (2014: Nil) for the loans made to associates. 7.Business combinations On July 15, 2015 the Company completed a transaction through one of its subsidiaries which resulted in the Company now owning 100% of Bermuda Cablevision Limited. As a result, the Company acquired the minority interest for $3.4 million. The liability was due upon completion of the transaction and payments are made as the previous shareholders present their share certificates for settlement. As at September 30, 2015 $1.6 million of the liability has been claimed and paid. 8.Events after the reporting period On October 5, 2015, the Company entered into an agreement with Atlantic Tele-Network, Inc. (“ATN”), whereby ATN will acquire a controlling interest in KeyTech of at least 51% of KeyTech’s share capital. In exchange, KeyTech will receive $42 million in cash and ATN’s 42.79% of Bermuda Digital Communications Limited, operating in Bermuda as “CellOne”. Subject to legal and financial requirements, KeyTech intends to declare a special dividend of $0.75 per share to the KeyTech shareholders of record immediately prior to the closing of the transaction. Following the acquisition, it is expected that KeyTech will acquire the remaining shares of CellOne by way of merger and the issuance of KeyTech shares in the aggregate of approximately 8.9%. Certain required legal steps for the proposed transaction were approved by KeyTech shareholders at a special general meeting on October 20, 2015. The transaction is subject to legal and regulatory consents and approvals in both Bermuda and the Cayman Islands. These financial statements record the Company’s existing investment in CellOne using the equity method of accounting and do n ot reflect any adjustments to uplift this investment to its fair value.

U N L O C K I N G A WO RL D OF CON N ECT IO N S | | KeyTech Six Month Report 201511 Notes to Consolidated Financial Statements (Unaudited) for the six months ended September 30, 2015 9.Impairment of assets The transaction described in note 8 was considered to be an indicator of impairment under IAS 36 ‘Impairment of Assets’. These consolidated financial statements include impairment charges to property, plant and equipment and intangible assets of $17,083,259 and $65,985,998 respectively (2014: nil). These impairment charges reflect estimated valuation of these assets on an enterprise valuation basis. Management’s assessment of the value in use of these assets, under International Financial Reporting Standards, has not yet been completed and could result in impairment charges that are materially different to those recorded in these financial statements. The outcome of management’s final assessment of impairment will be recorded in the consolidated financial statements for the year ended March 31, 2016.

U N L O C K I N G A WO RL D OF CON N ECT IO N S | | KeyTech Six Month Report 2015 13 Board of Directors CHAIRMAN Mr. Gary L. Phillips, OBE, J.P., CIArb DEPUTY CHAIRMAN Ms. Fiona E. Beck ACBDA - Telecommunication Chair Charles Jillings Director Somers Limited Director ICM Limited Ms. Alison Hill, FCMA Chief Executive Officer Argus Group Holdings Limited Mr. E. Michael Leverock, B. Eng., P. Eng., MBA Cofounder and Director, Digital Communications Ltd. Mr. Douglas B. Trussler Partner & Managing Partner Bison Capital Asset Managment, LLC Mr. S. Sean Tucker, J.P., B.A. (Hons), LL.B. (Hons), G.D.P.A Head of Property & Estates Terra Law Limited, Barristers and Attorneys Chairman Bermuda National Sports Centre Director Island Petroleum Limited Executives and Officers Mr. Lloyd Fray Chief Executive Officer Mr. Richard Lau Chief Technology Officer Ms. Leslie Rans, CPA Chief Financial Officer Mr. Philip S. Harris Director of Human Resources Mr. Michael Tanglao General Counsel Secretary Common shares held by Directors – 368,307 Commons shares held by KeyTech Executive Management – 3,239 No rights to subscribe to shares or debt securities in the Company have been granted to, or exercised by, any Director, Officer or member of KeyTech Executive Management. There are no contracts of significance subsisting during or at the end of the financial year in which a Director was materially interested either directly or indirectly.

P R I N C I P A L S U B S I D I A R I E S B e r m u d a C a b l e v i s i o n L i m i t e d (trading as “Logic”) 30 Victoria Street Hamilton HM 12 Bermuda ww w. l o g i c . b m W e s t Te l L i m i t e d (trading as “Logic”) 43 Eclipse Dr Grand Cayman Cayman Islands ww w. l o g i c . k y C a b l e Co. Ltd . 30 Victoria Street Hamilton HM 12 Bermuda B e r m u d a Y e l l o w P a g e s L i m i t e d Swan Building 26 Victoria Street Hamilton HM 12 Bermuda ww w. b e r m u d a y p . b m K e y Tec h L i m i t e d P.O. Box HM 2445 Hamilton HM JX Bermuda Tel: +1 441 295 5009 Fax: +1 441 292 4984 ww w. k e y t e c h . b m