Can I extend an O2 router network AND stream to an Airport Express?

I'd like to put an AE upstairs so I can use AirPlay from my Mac to both the downstairs AppleTV and the upstairs Airport Express at the same time.
Also, I'd like the Airport Express to act as a Wi-Fi Network extender for the O2 router that's downstairs.
Is this configuration possible?

I'd like to put an AE upstairs so I can use AirPlay from my Mac to both the downstairs AppleTV and the upstairs Airport Express at the same time.
The AirPort Express will work for this if it can receive a good quality wireless signal where it will be located.
Also, I'd like the Airport Express to act as a Wi-Fi Network extender for the O2 router that's downstairs.
The "extend" feature appears to be a proprietary function with Apple products. It is extremely unlikely that it will work with the O2 router. As far as we know, this feature only works among Apple products.

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