A pub landlord and "terrorist of long standing" was last night facing life in prison after being convicted of conspiring to cause the Omagh bombing which killed 29 people.

Father-of-four Colm Murphy, 49, was convicted at Dublin's Special Criminal Court for his part in the worst single act of murder in Northern Ireland since the start of the Troubles.

Murphy was remanded in custody by the three-judge anti-terrorist court awaiting sentencing on Friday.

Bereaved victims and relatives of the dead broke down in tears as the verdict was delivered by Mr Justice Robert Barr, presiding. Murphy looked on stony faced, showing no emotion.

Mr Justice Barr said: "The accused is a republican terrorist of long standing, having been convicted of a series of offences of this nature in both this state and the United States and having served jail sentences."

Murphy, the only man yet convicted in connection with the 1998 atrocity, was found to have handed over two mobile phones to suspected Real IRA activist Seamus Daly.

One mobile phone was used by terrorists transporting the explosives from Co Monaghan to Omagh. The other was used by a team in a "scout car", travelling some distance ahead.

The explosion killed 29 people, including a woman pregnant with twins, and injured more than 300 others in the County Tyrone market town.

Mr Justice Barr told Murphy, a wealthy land-owner who also ran a large building firm until his arrest, he was a proven liar, with a "long history" of violent republican activity.

He said confessions made by Murphy to police, but later denied in court, had a "firm ring of truth".

The judges agreed that Murphy also loaned his mobile phone to terrorists who bombed Banbridge in County Down only weeks before the attack on Omagh, injuring more than 35 people.

Assistant Commissioner Kevin Carty, who headed the man hunt in the Republic, said the verdict represented a "significant milestone" in the Omagh investigation.

He paid tribute to the families of the dead: "We are acutely aware of the suffering and the pain that these people are enduring and all I can say is we hope that the events here this evening might go some way in assisting with the healing process."

Meanwhile, Murphy's sister, Angela Riley, said: "This is a joke. I have had to sit here and listen to these lies." But Laurence Rush, whose wife Libbi died in the blast, broke down in tears and sobbed: "I'm so relieved."

Northern Ireland Secretary John Reid said the conviction of Murphy was "one step towards getting justice for the victims of the Omagh tragedy".