Statement re Placing

Mobile Tornado Group PLC
27 June 2006

Mobile Tornado Group Plc ('Company' or 'Mobile Tornado')



On 26 April 2006, the Company announced the placing of 14,551,333 new ordinary
shares at a price of 16p per ordinary share ('Placing') to accelerate its global
marketing and develop extensions of its fixed-mobile convergence products.



Mr Pinievsky, a director of the Company, subscribed for 12,251,333 new ordinary
shares in the Placing ('Placing Shares').  On receipt of his duly signed
subscription letter and confirmation from Mr Pinievsky that the Company's
Israeli subsidiary was in funds, the Board issued and allotted the Placing
Shares. However, as at the date of this announcement, the Company has not yet
received payment for the Placing Shares. Whilst Mr Pinievsky has assured the
Board that he continues to make every effort to secure the funds to pay for the
shares, the  Board has now come to the view, following its own investigations
and detailed discussions with Mr Pinievsky, that there can be no assurance that
the financing that Mr Pinievsky confirmed was in place will be forthcoming, in
which circumstances Mr Pinievsky may be unable to pay for his Placing Shares.



Mr Pinievsky has today resigned from the board of Mobile Tornado, although he
will remain with the Group as an employee.  The  Board is taking legal advice to
determine what immediate action should be taken in relation to the Placing
Shares and to consider the enforcement of payment obligations against Mr
Pinievsky.



The financial position of the Company and its subsidiaries ('Group') has been
protected against the shortfall of the placing proceeds by management actions
across the Group to reduce development costs, delay the expansion programme,
manage creditors and agree additional shareholder loans.



The Board is currently working with Mr Pinievsky to resolve this matter without
recourse to litigation and, in particular, is addressing the possibility of Mr
Pinievsky realising other assets (including potentially his pre-existing holding
of shares in the Company) to fund his default. Mr Pinievsky has agreed to
deposit the share certificates he holds in respect of all shares issued to him
in connection with such discussion.



A further announcement will be made in due course.



Trading Update



The Company continues to see increasing global interest for its mobile Push to '
X'  products, including its recently demonstrated Push to Video solution. The
Company's key patent continues to be progressed in major territories.  Mobile
Tornado, in collaboration with global hosting partners, is planning to launch a
managed service for its products to address the smaller mobile operators and
enterprise customers on a pay per month model. The first service is expected to
launch in Germany in July 2006. Trading revenues from Mobile Tornado
International Limited are anticipated to be €290,000 for the 12 months to 30
June 2006. The Directors are encouraged by the revenues expected from the
contracts already in place and the growing order book for the coming financial
year.





Contacts:


Mobile Tornado Group
John Swingewood, Executive Chairman            020 8104 1992

Buchanan Communications
James Strong                                   020 7466 5000

Corporate Synergy Plc
Rhod Cruwys / John Prior                       020 7448 4400




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