Final Results

Adamind Ltd
13 April 2007



13 April 2007
                                  Adamind Ltd

                    Results for the year to 31 December 2006

Adamind Ltd (Adamind or "the Company") (LSE: ADA) announces its financial 
results for the year ended 31 December 2006.

Summary

   • Revenues were broadly in line with revised guidance at $5.95m (2005:
    $6.1m). Second half revenues amounted to $4.2m reflecting primarily the
    increase in MMS traffic in US and Asia and deployment of the Company's
    software within global network operators


   • Net loss amounted to $6.52m (2005: $1.35m) primarily due to the planned
    increase in building sales and marketing infrastructure


   • Loss per share was $0.18 (2005: $0.04)

  
   • In the first half, the Company's revenues were impacted due to
     delays in customer upgrades via channel partners, in particular, the
     Company's largest channel partner; delays in the completion of a number
     of content deals; and increased emphasis on direct sales which have a
     longer sales cycle

  
   • Consequently, in September 2006, the Board of Adamind announced a series
    of decisive steps undertaken to address the challenging market conditions
    faced by the Company. These steps included the appointment of Orna Berry as
    Executive Chairperson, and the strengthening of the Company's management
    team


   • At 12 April 2007, the Company's cash balances amounted to approximately
    $20.5m


Orna Berry, Executive Chairperson of Adamind, said: "The measures taken in the
third quarter resulted in a strong finish to the year thereby helping to reduce
the losses. The Board remains committed to achieving the best possible outcome
for shareholders in the Company. Yesterday, at an EGM of the Company, the
shareholders approved the sale of assets of the Company to Mobixell Networks 
(Israel) Ltd and the Board will be progressing this with speed."

Enquiries:

Adamind                                     [phone] on day and
Orna Berry, Executive Chairperson           [phone] thereafter
Gideon Marks, CFO

Corfin Communications
Harry Chathli, Neil Thapar                  [phone]



CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

                                                             31 December
                                                        ------------------------
                                                Note        2005          2006
                                              -------   ----------     ---------
ASSETS

CURRENT ASSETS:
Cash and cash equivalents                           3   $ 1,877       $ 15,213
                                                                       
Short-term available-for-sale marketable
securities                                          4     16,726         7,451
Short-term held-to-maturity marketable           
securities                                          4      2,131             -
Trade receivables                                          1,522         1,535
Other accounts receivable and prepaid expenses               148           468
                                                        ----------     ---------

Total current assets                                      22,404        24,667
----------------------                                  ----------     ---------

NON-CURRENT ASSETS:
Long-term held-to-maturity marketable             
securities                                          4      7,448             -
Property and equipment, net                         5        424           477
Intangible assets, net                              6      2,803         2,087
                                                        ----------     ---------

Total non-current assets                                  10,675         2,564
--------------------------                              ----------     ---------

                                                        $ 33,079       $27,231
                                                        ==========     =========
                                                            


CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share data

                                                          31 December
                                                     --------------------------
                                                        2005             2006
                                                     ---------        ---------

LIABILITIES AND EQUITY

CURRENT LIABILITIES:
Trade payables                                         $ 304            $ 577
Employees and payroll accruals                           859              936
Accrued expenses and other liabilities                 1,570            1,211
Deferred revenues                                        416              657
                                                     ---------        ---------

Total current liabilities                              3,149            3,381
---------------------------                          ---------        ---------

EQUITY:
Share capital -
Ordinary shares of NIS 0.01 par value: Authorized:
50,000,000 shares at 31 December 2005 and 2006;
Issued and fully paid: 35,388,636 and 35,546,636
shares at 31 December 2005 and 2006, respectively         80               81
Additional paid-in capital                            31,285           31,768
Net unrealized loss reserve                                -              (46)
Accumulated deficit                                   (1,435)          (7,953)
                                                     ---------        ---------

Total equity                                          29,930           23,850
---------------                                      ---------        ---------

                                                    $ 33,079         $ 27,231
                                                     =========        =========



CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands, except share and per share data


                                                         Year ended
                                                        31 December
                                                   ----------------------------
                                                      2005               2006
                                                   ---------          ---------

Revenues                                           $ 6,154            $ 5,946
Cost of revenues                                       632                739
                                                   ---------          ---------

Gross profit                                         5,522              5,207
                                                   ---------          ---------

Operating expenses:
Research and development, net                        3,157              3,002
Sales and marketing                                  3,087              5,550
General and administrative                           1,127              2,137
Amortization of intangible assets                      878                831
Impairment of intangible assets                          -              1,165
                                                   ---------          ---------

Total operating expenses                             8,249             12,685
                                                   ---------          ---------

Operating loss                                       2,727              7,478
Financial income, net                                1,379                960
                                                   ---------          ---------

Net loss                                           $ 1,348            $ 6,518
                                                   =========          =========

Basic and diluted net loss per share                $ 0.04             $ 0.18
                                                   =========          =========

Weighted average number of shares used in
computing basic and diluted net loss per share  33,548,392         35,516,186
                                                   =========          =========





CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
U.S. dollars in thousands, except share data


             Series A Convertible 
                 Preferred shares       Ordinary shares       Additional paid-in
                  shares  Amount            shares   Amount        capital
                 --------  -------          --------  ------        -------
Balance as of
January 1,     
2005           4,800,000    $ 11        19,200,000     $ 43        $ 5,956

Issuance of
Ordinary
shares upon
Initial
Public
Offering and
conversion
of
Series A
Convertible  
Preferred 
shares*)      (4,800,000)     (11)       16,163,636      37       *)25,113
                                                                     
Issuance of
Ordinary
shares upon
exercise of
employees'
share                  
options                -        -            25,000    **)-              9

Share-based
compensation           -        -                 -       -            207

Net loss               -        -                 -       -              -
                 --------  -------          --------  ------        -------

Balance as of
31 December  
2005                   -        -        35,388,636      80         31,285

Issuance of
shares upon
exercise of
employees'
share               
options                -        -           158,000       1             64

Cancellation
of issuance
expense                -        -                 -       -            298
                        
Unutilized       
losses on
available
for sale
marketable
securities             -        -                 -       -              -

Share based
compensation           -        -                 -       -            121
                        
Net loss               -        -                 -       -              -
                 --------  -------          --------  ------        -------

Balance as of
31 December          
2006                   -      $ -        35,546,636    $ 81       $ 31,768
                 ========  =======          ========  ======        =======    
                                                                               

*) Net of issuance expenses of $ 2,906.
**) Represents an amount lower than $ 1.



Cont...CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
U.S. dollars in thousands, except share data


                                                                Total recognized
                  Net unrealized        Accumulated    Total    income and
                   loss reserve           deficit      equity    expenses
                    -------             --------       -------    -------

Balance as
of
January 1,           
2005                   $ -               $ (87)       $ 5,923       $ -                                    
                                                                                              
Issuance of
Ordinary
shares upon
Initial
Public
Offering and
conversion
of
Series A
Convertible      
Preferred
shares *)                -                    -        25,139         -

Issuance of
Ordinary
shares upon
exercise of
employees'
share                  
options                   -                    -            9          -

Share-based
compensation 
                          -                    -          207          -
Net loss                  -               (1,348)      (1,348)    (1,348)
                       -------           --------     -------     -------

Balance as of
31 December     
2005                      -               (1,435)      29,930      (1,348)
                                                                   =======

Issuance of
shares upon
exercise of
employees'
share            
options                   -                    -          65            -

Cancellation
of issuance
expense                   -                    -         298             -
                  
Unutilized
losses on
available
for sale
marketable          
securities              (46)                   -         (46)          (46)

Share based
compensation               -                   -         121             -
                    
Net loss                   -              (6,518)     (6,518)       (6,518)
                     -------             --------     -------      -------

Balance as
of
31 December  
2006                  $ (46)            $ (7,953)    $23,850      $ (6,564)
                     =======             ========     =======       =======
                                                         

CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

                                                              Year ended
                                                              31 December
                                                         -----------------------
                                                            2005          2006
                                                         ---------     ---------
Cash flows from operating activities:

Net loss                                                 $(1,348)      $(6,518)

Adjustments to reconcile net loss to net cash provided
by operating activities:
Depreciation, amortization and capital loss                1,125         1,106
Impairment of intangible assets                                -         1,165
Increase in trade receivables, other accounts
receivable and prepaid expenses                           (1,535)         (259)
Increase (decrease) in trade payables, employees
and payroll accruals, accrued expenses and other
liabilities                                                1,439           (87)
Increase in deferred revenues                                112            84
Share-based compensation                                     207           121
                                                         ---------     ---------

Net cash used in operating activities                          -        (4,388)
                                                         ---------     ---------

Cash flows from investing activities:

Purchase of property and equipment                          (258)         (326)
Proceeds from sale of property and equipment                   -             6
Investment in short-term available-for-sale
marketable securities, net                               (16,700)        9,341
Investment in short-term held-to-maturity
marketable securities, net                                (2,018)        9,420
Investment in long-term held-to-maturity marketable
securities                                                (7,448)            -
Payment for the acquisition of SenseStream Ltd. (1)            -          (782)
                                                         ---------     ---------

Net cash provided by (used in) investing activities      (26,424)       17,659
                                                         ---------     ---------

Cash flows from financing activities:

Proceeds from exercise of employees' share options             -            65
Issuance of shares upon Initial Public Offering           28,056             -
Issuance expenses                                         (2,554)            -
                                                         ---------     ---------

Net cash provided by financing activities                 25,502            65
                                                         ---------     ---------

Increase (decrease) in cash and cash equivalents            (922)       13,336
Cash and cash equivalents at the beginning of the
year                                                       2,799         1,877
                                                         ---------     ---------

Cash and cash equivalents at the end of the year         $ 1,877      $ 15,213
                                                         =========     =========
                                                                       

Supplemental disclosure of cash flow activities:
--------------------------------------------------

Cash received during the year for:
Interest                                                   $ 688       $ 1,162
                                                         =========     =========

Non-cash financing activities:

Cancellation of issuance expense payables                 $    -       $ 298
                                                         =========     =========

(1) Payment for the acquisition of SenseStream Ltd.
----------------------------------------------------
Estimated fair value of assets acquired and liabilities
assumed at the date of acquisition:
Working capital deficiency, excluding cash and cash
equivalents                                                $   -         $ 489
Property and equipment                                         -            (8)
Intangible assets                                              -        (1,280)
Accrued severance pay, net                                     -            17
                                                         ---------     ---------

                                                           $   -        $ (782)
                                                         =========     =========




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