Final Results

Bango PLC
12 June 2007


                                   BANGO PLC
                           ('Bango' or the 'Company')
               Preliminary Results for year ended 31st March 2007

Bango (AIM: BGO), the mobile internet platform provider, today announces
Preliminary Results for the year ended 31st March 2007.

Financial Highlights (under IFRS, comparative data for FYE 31 March '06)

   • Revenues grew 38% to £10.43m (£7.53m).
   • Gross profit grew 12% to £2.47m (£2.19m).
   • Operating expenses (excluding share based payments) increased by 48% to
     £5.53m (£3.75m) due to expansion into new territories, product development
     and increased marketing spend.
   • Loss before tax £3.32m, £2.92m before share based payments
    (£1.53m, £1.36m before share based payments).
   • Cash balance of £1.93m as at 31 March 07. (£4.86m in 2006).
   • Monthly cash consumption reduced to around £100k / month at year exit.

Operational Highlights

   • Customer wins include MTV, Capcom, Daily Telegraph, FT.com, Agent
     Provocateur, Jamba, Betfred, Yamaha Music, EA, Cellcity, Paramount Pictures,
     Ministry of sound.
   • Average daily end user spend increased by 48% from March 2006 to March 2007.
   • New Agreements signed with 3, Swisscom, Orange, O2, Optimus, Telefonica,
     Proximus Yahoo! and Cingular.
   • Introduction of new Advantage, Vision and Starter products for large
     customers, advertisers and individuals.
   • Ability to add charges on bill for more than 40 mobile operators as at
     March 07 vs. 21 in March 06.

Ray Anderson, Chief Executive Officer of Bango, commented: 'The year was one of
significant progress in the development of the Company. Bango has established a
scalable business with a unique industry position, and as we enter a new
financial year we are starting to see the benefits of our technology and
partnerships. Our business is growing and the market, although at an early
stage, continues to develop in the way we anticipated although fast growth has
taken longer to start than we expected. Working with mobile operators, content
providers and brands, other commercial partners and investors, we look forward
to continuing success in the coming years'.


Contact Details:

Bango plc             ICIS Limited - Financial PR      Panmure Gordon & Co
Tel. [phone]  Tel. [phone]            Tel. [phone]
Ray Anderson, CEO     Tom Moriarty                     Aubrey Powell
Peter Saxton, CFO     Caroline Evans-Jones             Stuart Gledhill


About Bango

Bango (AIM: BGO) has developed and operates the technology that enables content
providers to quickly and easily market, sell and deliver their products and
services directly to mobile phone users on all mobile networks using the mobile
web. This 'direct-to-mobile' approach operates alongside the mobile operator's
mobile portal.

Businesses of all sizes, from individuals to global brands are now using Bango's
services to engage with their existing and potential mobile customers directly -
irrespective of mobile operator. For further information visit www.bango.com.


Chairman's Statement

The Board is pleased to report good progress in all areas of the business.
Although the performance of the business was not consistent throughout the year,
the overall picture is one of continued growth in revenue, generated by growing
numbers of Bango customers supplying increasing amounts of content to an
expanding pool of end users as well as expansion into new territories.

While Bango's technology and the mobile web have global reach, we have focussed
our sales and marketing efforts where we see the most activity by content
providers: USA, UK and Spain. There have been numerous customer wins in these
territories as a result, including MTV, Capcom, Daily Telegraph, FT.com, Agent
Provocateur, Jamba, Flycell, Betfred, Yamaha Music, EA mobile, Rascal Flatts,
Mediaplazza, Cellcity, Handsonmobile, Carmunity, MOMO, Paramount Pictures and
Ministry of Sound. We also see significant potential in the gathering momentum
among smaller content providers with hundreds of small and individual customers
signing up since early 2007 when we launched our free sign-up Starter package.
Our product range expanded to address high end customers with our Advantage
product.

Compared to the previous financial year, we are pleased to report revenue growth
of 38% to £10.43m. Our decision to reduce our charges for collecting payments
for larger customers resulted in a slower gross margin increase of 12% to
£2.47m. Our established UK business remains the biggest contributor to our
growth, measured both by content providers paying for Bango services and end
users connecting through Bango to reach or pay for content. Although we saw a
slow down in end user spending in the UK during the first half of the financial
year, which appears to have been due to problems with systems at one mobile
operator and less activity during two summer months, growth resumed in the
second half of the year and remains solid.

Outside the UK, growth has been faster than in the UK but from a smaller base.
This has been driven by content providers in the UK using Bango to export
globally and customers using Bango's global reach to access international
content.

Based on the large number of content provider sign-ups over the last two years,
we now have a considerable body of operating history from which to observe the
relationship between content provider sign-up and subsequent promotion of their
content. Smaller content providers appear to exploit the mobile web much more
rapidly than larger ones. They use the tools and services of the mobile internet
- including search, mobile advertising and communities - to a much greater
extent than existing brands, which appear to be slower to move from older style
'text message' campaigns. Our management is increasingly focussed on improving
Bango's ability to sell quickly and cost effectively to smaller content
providers, while ensuring that the larger customers are provided with the tools
and information to grow when they are ready.

The US market is showing tremendous potential, with increasing numbers of
customers, of all sizes, using the Bango service. They see Bango not only as a
route to US based end users, but also as a quick and easy route to consumers
world-wide through the global reach of Bango's technology and services. However,
the board believes that initial US growth in end user spend on content may be
slower than that experienced in European markets as US mobile operators are
slower to open up their billing services to a wide range of content than we saw
in Europe.

This view is endorsed by the increasing number of US content providers investing
in Bango products in preparation for marketing content to mobile end users, and
to gain additional revenues outside the USA.

During January 2007, the Company restructured its sales and marketing operations
to improve sales productivity, as well as giving our strategic partners more
support and centralising some previously regional sales activity. This has led
to a significant reduction in monthly operating costs and cash burn, and has
enabled the Company to start the financial year ending March 2008 with a net
monthly cash burn of less than £100,000. The executive team remains focussed on
sales and marketing efficiency so that in circumstances of rapid sales growth
the business can sustain accelerating customer acquisition rates while
containing costs.

The Company is well-positioned to exploit its market position. The product line
is strong and there are several innovations coming to market that, the board
believes, will enhance the business's competitive stance, seed faster growth and
reduce sales cost. During 2007 we will be introducing further low end products
to facilitate the move by content providers from PC web to mobile web. The sales
team continues to raise its productivity, selling more packages per sales
person, and has increased the number of partners reselling the Bango Service.

I pleased that Bango is gaining partners among not only mobile internet
businesses and mobile operators, but increasingly among the leading internet
media companies who, in our experience, are starting to recognize the mobile
internet opportunity and develop strategies for addressing it.

Bango is a well positioned business that enjoys increasing opportunities for
growth in revenue in this rapidly expanding market. We look forward to providing
a further progress update at the half year.

Lindsay Bury
Chairman


CEO's Statement

During the year ended March 2007, I am pleased to report that we have made
significant progress towards developing a Company that is positioned to take
full advantage of the growth in the mobile web. It has been a year of honing our
products and our organization to become more efficient and more focused on where
market demand is growing fastest.

Specific activities include investment in our sales and marketing presence in
the USA and Spain; development of our products and technology to make them
easier to use and to expand their capability and efficiency; and the
establishment of relationships with companies such as Yahoo that we believe will
be key to our success as the mobile web becomes mainstream.

Bango's product strength together with our sales and marketing activity won us
more than 250 new Pro level customers including big brands such as Paramount
Pictures, MTV and Gameloft and many smaller content providers. These customers
signed up to one of our mobile web focussed products which generate recurring
revenues for the business.

In addition many of these new customers have been successful in gaining business
on the mobile web, resulting in a significant increase in transaction volumes
over the year. Comparing March 2007 with March 2006, average daily user spending
was up 48%.

We revised our revenue growth expectations downwards during the year as a result
of three factors: a 2 month pause in growth in the UK in mid 2006, a slowness by
larger companies in deploying their Bango powered solutions and a higher
attrition rate among smaller US customers than we had experienced in other
countries. I am pleased to report that revenue growth resumed at the end of 2006
and that we are seeing lower attrition among customers as we refine our products
and the market starts to expand.

In January 2007 we initiated a drive to increase efficiency and effectiveness
where we are seeing most growth and on reducing other activities. An example of
this approach has been to exploit key partner relationships established in 2006
to implement operating cost reductions while increasing sales volumes. A reduced
monthly cash burn of under £100,000 at financial year end show progress towards
positive cash flow and profitability. Our year end cash balance of almost £2
million is considered sufficient to do this. We have adopted a more conservative
approach to forecasting and remain focused on achieving the transition to
profitability in the coming year.

The market continues to develop broadly in the way we envisaged, to favour the
use of the mobile web as a way to sell and market content to users. UK and
Spanish mobile operators announced 'flat rate' and low cost mobile internet
tariffs. Operators also started to open up their portals by including search
engines. Major internet companies such as Google, Yahoo, eBay and MySpace are
beginning to push their PC users to mobiles. Our sales pipeline is expanding and
customer sign-up rates are increasing. Our unique technology and product
offering, together with the benefits of our expanding network of customers give
us competitive advantage. We therefore enter the new financial year with
confidence and enthusiasm.

Sales and marketing

We continued to develop our regional sales teams, modelled after our successful
UK operations. The USA team based out of New York is making good progress. We
expect many successful mobile websites will originate there and that many of the
global leaders in mobile web will be most active in that market. We have a
smaller presence in Spain, where we see many companies developing mobile sites
with global appeal.

Our sales operations focussed in Germany did not show the traction we expected.
Larger German content providers seem focussed on their local market, so the
power of Bango's global reach is not as valuable. In addition those German
companies with a global perspective prefer to engage with the UK based teams. We
therefore scaled down our German-specific activities and re-allocated resources
to a 'pan European' team. As outlined previously, this is also in line with our
aim to increase operational efficiency.

We believe that the US mobile content market is currently about 12 months behind
the UK market but growing fast. Complexities of text messaging may mean that the
US transitions more quickly from the SMS messaging phase that we saw in the UK
to an internet model. The advertising led culture in the US is stimulating
growth in the mobile web in a way not seen so far outside Japan. The launch of
the Apple iPhone is raising the awareness of web access through mobiles.

Bango Partner Program

During 2006 we invested considerable time and resource in building a base of
'development partners' who build mobile sites for content providers. With more
than 30 partners active participating in this program vs 14 a year earlier, we
have shifted our focus towards making these partners successful and transferred
the responsibilities of our global partner program into our regional sales,
marketing and support teams.

Bango salespeople now engage partners faster in the selling cycle, shortening
lead times and accelerating sales. Partners get direct access to Bango's
customer service teams to enable them to better support opportunities. We have a
special offering for new development partners, enabling them to learn about and
integrate Bango technology without having to find an initial customer. The
result of this has been an increased efficiency in dealing with partners,
lowering costs and with the expectation of increased sales productivity in the
coming years.

In the expectation of a rapid acceleration in demand for small, low cost mobile
web sites, we continue to work closely with a handful of companies we believe
will be important providers of such services to 'embed' Bango technology into
their products.

Product development

Our unique technology and the service it enables is key to our competitive
differentiation. The development team continued to add significant new features
and functions to the Bango platform to enable content providers to offer a
better user experience and to reduce the costs of doing business in the mobile
internet. For example, our Billrank technology finds the lowest cost biller for
any payment transaction.

We also added features to the Bango platform that increased the number of
visitors to content providers' sites by providing better integration with mobile
search engines such as Yahoo!, Jumptap and Google. We believe that promotion of
content through mobile search engines will become an important driver of end
user activity in the coming years, and it is an area where we see good
opportunities to leverage our independent industry position.

System availability exceeded 99.995% during the year. With transaction volumes
constantly increasing, scalability at low cost and without service outage is
vital. Our R&D team has steadily increased the capacity of the Bango system to
stay ahead of demand at low cost. We established a third hosting facility and
acquired new hardware and software for our data-centres from Zeus (cacheing and
cross-server load balancing) and NetApp (reliable highly scalable storage). We
also succeeded in achieving Level 2 PCI Data Security Standard certification.

We reinforced our IPR position by applying for further patents relating to our
Billrank technology. We were also first to demonstrate the new UK 'payforit'
user experience which is now automatically available to all our content
providers. Payforit, a cross network mobile internet billing scheme, will become
a mandatory requirement for mobile commerce in the UK later in calendar year
2007, and will accelerate the move away from SMS based payment systems.

Work to streamline and simplify our 'self-service' proposition continued and we
introduced a zero cost of entry 'starter package' in preparation for marketing
activity with key partners later in 2007. If the market develops as we
anticipate we need to be able to service hundreds of thousands of content
provider customers rather than the thousands we handle today. This work is
ongoing.

Financial performance

Revenues grew 38% to £10.43m (£7.53m) and gross profit grew 12% to £2.47m
(£2.19m FY06).

After slower growth in content access fees in the first half of the year, more
substantial growth returned in the second half of the year, with revenue for the
year up by 37% on the previous year.  In line with Bango's decision to increase
payouts to larger content provider customers, the gross margin percentage on
content access fees reduced to 13% (2006 : 20%).  In absolute terms the gross
margin earned on content access fees held broadly level at £1.17m (2006 :
£1.31m).

Content provider revenues grew to £1.54m (2006 : £1.00m), up by 53% compared
with the previous year, with margin also increasing by a similar percentage to
£1.26m (2006 : £0.82m).

Revenue and margin from services to Mobile Network Operators decreased to £0.03m
(2006 : £0.06m) as the Company continues to move away from one-off sources of
income.

Operating expenses (excluding share based payments) increased by 48% to £5.53m
(£3.75m) due to our expansion into new territories, product development and
increased marketing spend. They reduced from around £550,000 per month in
October 2006 to below £400,000 per month in March 2007.

The period to December 2006 was marked by investment in marketing, sales and
partner recruitment to gain presence in Germany, USA and Spain. In January 2007
the changes in our partner program and sales focus enabled us to reduce our cost
base by around 30% over a 3- month period while still increasing monthly
revenues and gross margin.

Our expectation is that we can continue to grow revenues and margins
considerably with current operating cost levels, as a result of the high
leverage we gain from our systems and partners.

A key focus on entering the current financial year is reducing customer
acquisition cost to ensure we are in a good position to capitalize on our
position when the market accelerates.

The loss before tax was £3.32m, £2.92m before share based payments. (£1.53m,
£1.36m before share based payments). The loss was mostly due to investments in
international roll-out, primarily in sales and marketing activity.

The cash outflow from operations was broadly in line with the trading results
for the period, reflecting the small change in working capital requirements
despite the substantial increase in revenue and the purchase of new hardware to
support future increases in demand as expected as existing and new customers
increase their transaction volumes.

We experienced an increase in attrition rates during the year. Some early
customers in the USA proved over-optimistic in their revenue forecasts and
postponed their entry into the mobile web. Some of these have since returned now
that there are ways to market more efficiently. Bango wishes to supply all
potential customers without necessarily being able to predict which of those
customers will succeed in monetising their content. Therefore our business
model and technologies concentrate on reducing costs and barriers to becoming a
Bango customer and ensuring the running costs in the early stages of developing
a mobile business are low.

Entering FY2007/8 the net monthly cash burn was around £100,000. Further
sign-ups of customers and increasing transaction volumes are generating
increasing gross margin. With costs stable we believe our existing resources and
further business growth will take us to positive cash flow and profitability.

Outlook and Strategy for FY2007/8

We have established an effective and scalable business in an early stage market.
Growth is continuing and current performance indicators are favourable.

With largely predictable and stable operational costs, our focus for the year to
March 2008 is to continue to drive down customer acquisition costs and to
strengthen the product proposition. This will enable us to increase our growth
rates while maintaining stable operating expenditure.

Our goal is to reach profitability and to be cashflow positive with a
significantly reduced cost of customer acquisition this year - and before the
market enters a fast growth phase. This will enable us to capitalize on market
growth from a position of strength.

On behalf of the Board, I would like to express my gratitude to Bango's partners
and employees for their continued support. Working with mobile operators,
content providers, billing companies and other commercial partners and
investors, we look forward to increasing success in the year ahead.

Ray Anderson
Chief Executive Officer



                                   BANGO PLC

            Unaudited results for the 12 months ending 31 March 2007

Consolidated income statement
                                                          2007             2006
                                          Note               £                £
Revenue                                     2       10,428,312        7,532,877

Cost of sales                                        7,962,403        5,341,577
                                                ---------------  ---------------
Gross profit                                         2,465,909        2,191,300

Administrative
expenses                                             5,528,659        3,746,209
Share based
payments                                               401,640          166,362
                                                ---------------  ---------------
Operating loss                                      (3,464,390)      (1,721,271)

Investment income                                      147,284          195,069
                                                ---------------  ---------------
Loss before
taxation                                            (3,317,106)      (1,526,202)

Income tax expense                                           -                -
                                                ---------------  ---------------
Loss for the
financial year                                      (3,317,106)      (1,526,202)
                                                ===============  ===============
Basic and diluted
loss per share
(pence)                                     3           (12.40)           (6.09)
                                                ===============  ===============


All of the activities of the group are classified as continuing.



Consolidated summarised Balance Sheet
As at 31 March 2007
                                                 2007                    2006

                                                    £                       £
ASSETS
Non-current assets
Property, plant and
equipment                                     506,450                 319,013
Intangible assets                              15,311                  24,083
                                       ---------------         ---------------
Non-current assets                            521,761                 343,096

Current assets
Trade and other
receivables                                 2,423,266               2,267,458
Cash and cash
equivalents                                 1,931,094               4,863,004
                                       ---------------         ---------------
                                            4,354,360               7,130,462
                                       ---------------         ---------------
Total assets                                4,876,121               7,473,558
                                       ===============         ===============

EQUITY

Capital and reserves
Share capital                               5,369,548               5,306,864
Share premium
account                                     5,310,885               5,255,136
Merger reserve                              1,236,225               1,236,225
Other reserve                                 595,835                 194,195
Accumulated losses                        (10,072,270)             (6,755,164)
                                       ---------------         ---------------
Total equity                                2,440,223               5,237,256
                                       ===============         ===============

LIABILITIES
Current liabilities
Bank overdraft                                      -                  10,772
Trade and other
payables                                    2,435,898               2,225,530
                                       ---------------         ---------------
Total liabilities                           2,435,898               2,236,302
                                       ---------------         ---------------
Total equity and
liabilities                                 4,876,121               7,473,558
                                       ===============         ===============

                                
Consolidated summarised cash flow statement

                                                     2007                 2006
                                                        £                    £
Net cash used by operating activities    4     (2,821,343)          (1,665,667)


Cash flows from investing activities
Purchase of property, plant and
equipment                                        (352,525)            (333,679)
Purchase of intangible assets                     (15,971)                   -
Disposal of property, plant and
equipment                                           2,984                2,689
Interest received                                 147,284              195,069
                                             -------------        -------------
Net cash used by investing
activities                                       (218,228)            (135,921)

Cash flow from financing
activities
Proceeds from initial public
offering net of share issue
expenses                                                -             6,172,379
Proceeds from other issuance of
Ordinary Shares                                   118,433               161,221
                                             -----------           ------------
Net cash generated from
financing activities                              118,433             6,333,600

                                             -----------           ------------
Net (decrease)/increase in cash,                                          
cash equivalents and overdrafts                (2,921,138)            4,532,012

Cash, cash equivalents and
overdrafts at beginning of year                 4,852,232               320,220
                                               ----------            ----------
Cash and cash equivalents at
end of year                                     1,931,094             4,852,232
                                                =========             =========



Consolidated statement of changes in equity

                Share       Share
              capital     premium    Merger      Other  Accumulated
Group                     account   reserve    reserve       losses       Total
                    £           £         £          £            £           £

At 1 April  4,186,900          -  1,236,225     27,833   (5,228,962)    221,996
2005

Loss for the 
financial year      -          -          -          -   (1,526,202) (1,526,202)
             --------  ---------  ---------  ---------    ---------   ---------
Total income/
(expense) 
recognized
for 2006            -          -          -          -   (1,526,202) (1,526,202)
Shares issued
on IPO      1,044,776    5,955,224        -          -             -  7,000,000

Share issue
costs deducted
from equity         -    (786,121)        -          -             -   (786,121)

Exercise of
share options  75,188      86,033         -          -             -    161,221
options
Share based
payment charge      -           -         -    166,362             -    166,362
              -------   ---------    ------  --------- -------------  ---------            
            1,119,964   5,255,136         -    166,362    (1,526,202) 5,015,260
             --------   ---------    ------  --------- -------------  ---------
At 31 March
2006        5,306,864   5,255,136 1,236,225    194,195    (6,755,164) 5,237,256
             
Loss for the                        
financial year      -           -          -         -    (3,317,106)(3,317,106)
             --------   ---------    ------  --------- -------------  ---------
Total income/
(expense)    
recognized
for 2007            -           -          -         -    (3,317,106)(3,317,106)

Exercise of
share       
options        62,684      55,749          -         -             -    118,433
Share-based
payment charge      -           -          -   401,640             -    401,640
               ------      ------  ---------   -------     ---------   --------
               62,684      55,749          -   401,640    (3,317,106)(2,797,033)
               ------      ------   --------   -------     ---------  ---------
At 31 March
2007        5,369,548   5,310,885  1,236,225   595,835   (10,072,270) 2,440,223
            =========   =========  =========   =======    ==========  =========

         
Notes

1.       Accounting policies and basis of preparation

Whilst not yet a requirement for AIM companies, the Group has chosen to prepare
its Annual Report in accordance with International Financial Reporting Standards
('IFRSs') as adopted in the European Union and as applied in accordance with the
provisions of the Companies Act 1985.

The first time adoption of International Financial Reporting Standards in
preparing the financial statements for the year-ended 31 March 2007 has had no
material effect upon the results and financial position of the Group.

Interim results for the period to 30 September 2006, released on 18 October
2006, were prepared under UK GAAP. Had those results been prepared under
International Financial Reporting Standards there would have been no material
difference in results and financial position presented for that period.

The consolidated financial statements have been prepared under the historical
cost convention.

Significant accounting policies

The principal accounting policies applied in the preparation of these
consolidated financial statements are set out below. These policies have been
consistently applied to all the years presented, unless otherwise stated.

1.1 Property, plant and equipment

Property, plant and equipment is stated at historical cost less accumulated
depreciation. Depreciation is provided to write off the cost of all property,
plant and equipment to its residual value on a straight-line basis over its
expected useful economic lives, which are as follows:

Leasehold improvements 20% straight line
Office equipment       20% straight line
Computer equipment     33.3% straight line

1.2 Intangible assets

Acquired intangible assets are measured initially at historical cost and are
amortized on a straight-line basis over the expected useful economic lives:

Domain names           33.3% straight line

1.3 Impairment of property, plant and equipment and intangible assets

At each balance sheet date, the Group reviews the carrying amounts of its
property, plant and equipment and intangible assets for any indication that
those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss, if any. The recoverable amount is the higher of
the fair value less costs to sell and value in use.

1.4 Trade receivables

Trade receivables are recognized initially at fair value and are measured
subsequent to initial recognition at amortized cost using the effective interest
method, less provision for impairment. Any change in their value through
impairment or reversal of impairment is recognized in the income statement.

Provision against trade receivables is made when there is objective evidence
that the group will not be able to collect all amounts due to it in accordance
with the original terms of those receivables. The amount of the write-down is
determined as the difference between the asset's carrying amount and the present
value of estimated future cash flows.

1.5 Trade payables

Trade payables are initially measured at fair value, and are subsequently
measured at amortized cost, using the effective interest rate method.

1.6 Revenue recognition

End users make a prepayment to the Group prior to accessing chargeable mobile
internet content.

Content access fees are received from end users and are recognized as revenue at
the time at which end users access chargeable mobile internet content.

Where there has been no activity on an end user account for a period of 90 days,
the balance remaining is released to revenue in accordance with the end user
terms and conditions, because of operating policies of mobile network operators
relating to number reissue.

Revenue from the sale of licences to content providers and service contracts is
recognized in the financial statements over the period of the contract.

Revenue from services provided to mobile phone operators and content providers
are recognized in the financial statements over the period of the contract.

1.7 Employee benefits

All accumulating employee-compensated absences that are unused at the balance
sheet date are recognized as a liability.

Payments to defined contribution retirement benefit schemes are charged as an
expense as they fall due.

1.8 Share-based payment transactions

The Group issues equity settled share-based compensation to certain employees
(including directors). Equity settled share-based payments are measured at fair
value at the date of grant. The fair value determined at the grant date of the
equity-settled share-based payment is expensed on a straight-line basis over the
vesting period, together with a corresponding increase in equity, based upon the
Group's estimate of the shares that will eventually vest. These estimates are
subsequently revised if there is any indication that the number of options
expected to vest differs from previous estimates. Any cumulative adjustment
prior to vesting is recognized in the current period. No adjustment is made to
any expense recognized in prior periods.

Fair value is measured by an external valuer using the Black-Scholes option
pricing model. The expected life used in the model has been adjusted, based on
management's best estimate, for the effects of non-transferability, exercise
restrictions and behavioural considerations.

Where the terms of an equity-settled transaction are modified, as a minimum an
expense is recognized as if the terms had not been modified. In addition, an
expense is recognized for any increase in the value of the transaction as a
result of the modification, as measured by the date of modification.

Where an equity-settled transaction is cancelled, it is treated as if it had
vested on the due date of the cancellation, and any expense not yet recognized
for the transaction is recognized immediately. However, if a new transaction is
substituted for the cancelled transaction, and designated as a replacement
transaction on the date that it is granted, the cancelled and new transactions
are treated as if they were a modification of the original transaction, as
described in the previous paragraph.

Share-based payment transactions are shown separately in the Consolidated Income
Statement.

1.9 Segment reporting

A segment is a distinguishable component of the group services or operating
geography. The primary segmentation is by type of service, with a secondary
segmentation by geography.

1.10 Financial instruments/ liabilities

Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the entity
after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share
capital) are equivalent to a similar debt instrument, those financial
instruments are classed as financial liabilities. Financial liabilities are
presented as such in the balance sheet. Finance costs and gains or losses
relating to financial liabilities are included in the income statement. Finance
costs are calculated so as to produce a constant rate of return on the
outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the
definition of a financial liability then this is classed as an equity
instrument. Dividends and distributions relating to equity instruments are
debited direct to equity.

1.11 Share capital and reserves

Share Capital

Ordinary shares are classified as equity. Equity instruments issued by the
Company are recorded at the proceeds received, net of direct issue costs.

Share premium

Share premium represents the excess over nominal value of the fair value of
consideration received for equity shares, net of expenses of the share issue.

Merger reserve

The merger reserve represents the difference between the parent company's cost
of investment and a subsidiary's share capital and share premium where a group
reorganisation qualifies as a common control transaction.

Other reserve

The other reserve represents equity-settled share-based employee remuneration
until such share options are exercised.

1.12 Internally-generated intangible assets - research and development
expenditure

Expenditure on research activities is recognized as an expense in the period in
which it is incurred.

An internally-generated intangible asset arising from the Group's development
activities is recognized only if all of the following conditions are met:

   • an asset is created that can be identified (such as software and new
     processes)
   • it is probable that the asset created will generate future economic
     benefits; and
   • the development cost of the asset can be measured reliably.

Internally-generated intangible assets are amortized on a straight-line basis
over their useful economic lives. Where no internally-generated intangible asset
can be recognized, development expenditure is recognized as an expense in the
period in which it is incurred.

2.       Revenues

Turnover is split between the following activities:

                                                   2007                   2006
                                                      £                      £
Content access fees                           8,859,633              6,470,383
Content provider fees                         1,536,564              1,002,619
Services to Mobile Network
Operators                                        32,115                 59,875
                                          ---------------        ---------------
                                             10,428,312              7,532,877
                                           =============          =============

A geographical split of the turnover is given below:

                                               2007                      2006
                                                  £                         £

United Kingdom                            8,472,721                 6,755,158
EU                                          741,241                   324,270
US and Canada                               934,623                   311,454
Rest of the World                           279,727                   141,995
                                      ---------------           ---------------
                                         10,428,312                 7,532,877
                                       ==============             =============

3. Loss per share
                                                         2007             2006
Loss for the period                                £3,317,106       £1,526,202
Weighted average number of shares in issue         26,746,721       25,041,299
Basic and diluted loss per share                        12.40p            6.09p


Share options outstanding at 31 March 2007 and 31 March 2006 are considered to
be non-dilutive.

4. Notes to the statement of cash flows

Cash used by operations

                                                    2007                 2006
                                                       £                    £

Operating loss                                (3,317,106)          (1,526,202)
Depreciation and amortisation                    186,847               76,427
Investment income                               (147,284)            (195,069)
Share-based payment expense                      401,640              166,362
Shares issued in payment for
services                                               -               41,500
Increase in receivables                         (155,808)          (1,219,408)
Increase in payables                             210,368              990,723
                                           ---------------      ---------------
Net cash used by operations                   (2,821,343)          (1,665,667)
                                                 =========            =========

5. Publication of non-statutory accounts

The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.

The consolidated income statement, consolidated balance sheet, consolidated cash
flow statement, consolidated statement of changes in equity and associated notes
for the year-ended 31 March 2007 have been extracted from the group's unaudited
financial statements. These financial statements have not yet been delivered to
the Registrar.




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