Exercises FMN Option

RNS Number : 3342J

LonZim PLC

02 December 2008

 



2 December 2008

LonZim Plc

('LonZim' or the 'Company')

Exercises Option and Acquires Controlling Stake in FMN Africa

Further to the announcement on 16 April 2008, LonZim Plc (AIM: LZM), which was established for the principal purpose of making investments in Zimbabwe and the Beira corridor in Mozambique, is pleased to announce that it has exercised an option to acquire a 51 per cent. controlling stake in ForgetMeNot Africa (BVI) Limited ('FMN Africa') for the sum of US$400,000. FMN Africa, previously a wholly-owned subsidiary of ForgetMeNot Software Limited Hong Kong ('FMN'), is a communications technology company that specialises in 2-way unified messaging across Africa.

Following a mutual variation of the Option Agreement, announced on 16 April 2008, US$1,000,000 will be payable by LonZim to FMN on 31 March 2009  in return for FMN granting FMN Africa an exclusive, perpetual, irrevocable and royalty-free licence to use, distribute and sub- licence FMN's Message Optimiser (MO) technology across Africa.

FMN Africa is currently engaged with a number of telecom carriers and organisations in Africa for the deployment of FMN's patent pending unified messaging MO service. MO turns even the most basic mobile phone into an internet capable, multi-channel messaging device, instantly providing 2-way email and 2-way instant messaging for both pre-pay and post-pay customers alike. 

The first African network to implement Message Optimiser is Econet Lesotho. Contracts have been signed and work has started to provide all Econet Lesotho subscribers with email and instant messaging addresses. This will enable these subscribers, even if they only have a basic cell phone and network connection, to communicate by email and instant messaging with family, friends and businesses at home and abroad. Work is also underway with a second southern African network which should be up and running within a few weeks.

Two-way instant messaging in Africa is emerging to be a big attraction for mobile users; users of FMN Africa's Message Optimiser can enjoy seamless instant messaging through a range of instant messaging clients and across any mobile phone, enabling users with a very basic handset to receive emails as text messages and send text messages to email addresses. In addition, MO can be used for a variety of mobile banking and anti-fraud services by financial institutions. Carriers and organisations are not required to upgrade any infrastructure and integration can be completed within several weeks at a negligible cost. 

The services being deployed by FMN Africa allow carriers to immediately provide cost effective comprehensive unified messaging services to all of their customers without any upgrades to the device or any need for downloading new applications onto the device.

The deployment of MO by carriers is expected to open up a range of previously inaccessible services to many of their customers including 2-way email and 2-way instant messaging communication capability, mobile banking, mobile educational services, commercial market alerts such as commodities pricing and Government notifications for emergencies etc.

David Lenigas, Chairman of Lonzim commented:

'Our option agreement with FMN Africa required FMN Africa to have achieved tangible commercial progress and demonstrate real market demand for their application. Having reviewed the commercial interest they have generated with African telecom companies we believe that there is considerable potential for this technology throughout the continent. The communications sector is one of the fastest growing markets in Africa and FMN is well positioned to enter this market through the unique services and technology it provides. 

LonZim has already established a strong presence in both the communications sector and financial services technology, through its investments in Celsys, and Paynet, both of which offer strong synergies with FMNAfrica and further opportunities to enhance LonZim's portfolio of investments.'

Paul Roberts, Co-founder of FMN commented:

'We are extremely pleased to be consummating the partnership with Lonzim through the FMN Africa joint venture. The growing demand for and deployment of our Unified Messaging services will enable not only carriers and institutions to provide compelling and profitable messaging services to all of their customers, but will usher in a new era of unparalleled access to mobile and IP based communications for anyone with a mobile phone throughout the African continent. The deployment of our technology opens up an array of services in Africa hitherto unavailable due to financial or technological restraints.'

 ENQUIRIES

LonZim Plc	[phone]
David Lenigas, Executive Chairman	[phone]
Geoffrey White, Chief Executive Officer	[phone]
Emma de Borchgrave, Executive Director	[phone]
Pelham Public Relations
Charles Vivian	[phone] [phone]
James MacFarlane	[phone] [phone]
Collins Stewart Europe: NOMAD
Andrew Zychowski/Helen Goldsmith	[phone]

 

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