Vimio PLC

Admission to AIM

                                   Vimio plc                                   

                          ('Vimio' or 'the Company')                           

                         Placing and Admission to AIM                          

Vimio, the Dublin based provider of media distribution solutions and content to
Mobile Network Operators ('MNOs'), announces that trading in its ordinary
shares began trading on the AIM market today.

  * The Company has raised £5.6 million, before expenses, from a placing by
    John East & Partners Limited at 100p per ordinary share, valuing the
    company at £25.6 million;
  * Vimio's technology can compress wireless media content for a mobile phone
    to as little as one tenth the size of competing technologies;
  * Vimio's software provides 3G type functionality to MNOs using 2G and 2.5G
  * Customers include EMI Music Group, Music Factory Entertainment Group and
    3rd Ear Productions, MTC-Vodaphone (Bahrain), Mobile Telephone Group
    (EmiratesCall), Saudi Bells Company and Umniah Mobile Company in the Middle
    East and Grupo Azcel in Mexico.
  * Funds raised will be used to expand the group's business in China,
    establish a data centre and operational office in the Middle East and
    finance prepayments to content providers, to enhance the Company's media
    content catalogue.
Malachy Harkin, Chief Executive Officer of Vimio commented:

'We are delighted to have raised these funds for our expansion and to have
joined AIM. The company has class leading technology in a rapidly growing
market and we are enthusiastic about the future.'

                                                               2 September 2005


Vimio plc                                                   +353 (0)87 904 7472
Malachy Harkin                                                                 
John East & Partners Limited                                +44 (0)20 7628 2200
Jeffrey Coburn/John East                                                       
Hansard Communications Limited                              +44 (0)20 7245 1100
Nicholas Nelson/Ben Simons                                                     

                                   Vimio Plc                                   

                          ('Vimio' or 'the Company')                           

                         First day of dealings on AIM                          

The Company has raised £5.6 million by way of a placing carried out by John
East & Partners Limited and its shares have today commenced trading on AIM. The
Company's ticker is VIM following the placing, Fidelity International
Investment Advisors (UK) Limited, Gartmore Investment Management Limited and
Rathbone Unit Trust Management Limited each hold 1 million ordinary shares,
equivalent to 3.91 per cent. of the Company's share capital.

Vimio is the holding company of a group which offers turnkey media distribution
solutions to Mobile Network Operators which enable multimedia content to be
delivered to mobile phones. The group's proprietary technology can compress
wireless media content sent to a mobile phone down to as little as one tenth
the size of competing technologies, whilst maintaining audio and visual
quality. The directors of Vimio believe that this makes it very attractive to
mobile phone users, as it enables them to access and store more functions and
material on their handsets than most competing technologies.

The group provides six product modules - Vimio Jukebox Module, Vimio Content
Management Module, Vimio Billing/Network Management Module, Vimio Mobile Backup
Module, Vimio Security Module and Vimio Audiobooks Module. The Company's
competitors typically offer only parts of these solutions, making the
management of them more difficult, more expensive and more complex for MNOs and
their customers.

  * Vimio Jukebox Module is a mobile phone application which resides on the
    handset. The MNO's customers can use Vimio Jukebox to browse, select and
    purchase live TV, music, videos, games, ringtones, graphics, competitions
    and gambling products. Once content is purchased, Vimio Jukebox then
    downloads, stores and plays the content. Vimio Jukebox is a 'White Label'
    product, which can be branded with the identity of the MNO. The MNO has the
    ability to update the content within Vimio Jukebox directly to, for
    example, promote certain content to its customers
  * Vimio Content Management Module is a back-office tool which is used to
    administer, compress, protect and manage content. Material from content
    providers is uploaded to a central server, where Vimio proprietary codecs
    are applied to compress and digitally protect copyright in the material.
    The compressed, protected content is then classified, stored and made
    available for download. MNOs use Vimio Content Management Module to manage
    the catalogue of available content and to launch promotions, etc.. A major
    record label has approved the group's DRM technology to protect its digital
    catalogue of audio and video content.
  * Vimio Billing/Network Management Module fulfils customer requests for
    content made via Vimio Jukebox by transmitting the requisite material from
    the central server to the customer handset. Simultaneously, Vimio Billing/
    Network Management Module transmits a billing notification to the MNO,
    which charges the customer's account and then credits the group, which in
    turn credits the content provider.
  * Vimio Mobile Backup Module allows a mobile phone user to backup contact
    information on a central server. It is based on a standard protocol which
    ensures a high degree of handset compatibility with the module. Backups can
    be scheduled to run automatically. Vimio Mobile Backup Module also provides
    extra features, including the backup of types of data other than ordinary
    contact information, such as diary details, to do lists, ring tones, SMS/
    MMS messages and other mobile content.
  * Vimio Security Module permits users to access live video streams to their
    mobile handsets, making it possible to monitor remote surveillance cameras
    anywhere in the world. It can be used, for example, to monitor homes,
    offices and vehicles. The low bandwidth requirements of Vimio Security
    Module make it extremely effective and reliable over both GSM and 3G
  * Vimio Audiobooks Module enables customers to listen to audio books through
    mobile handsets or PCs. This application extends the customer base for
    content providers in this area of the market, as no tapes or CDs are
    needed. Bookmarks can be set, and the customer can switch between listening
    to the books on the handset and a PC at home. Customers can buy a whole
    book, or selected chapters.

The compression technology, which is based on 20 years of research and
experience, was originally developed by Mobile Media Umeå AB ('MMU') working in
conjunction with Professor Haibo Li of the Department of Applied Physics and
Electronics at Umea University in northeast Sweden, which has established a
reputation for its research into distance-spanning technologies. MMU developed
advanced compression technologies for black and white video content and applied
them to the delivery of stereo music and live television to mobile handsets. In
2002 MMU ceased trading in Sweden.

Subsequently, intellectual property rights and source code belonging to MMU
were acquired from the liquidator of MMU by Mobile Integrated Solutions Limited
('MIS'), a Dublin based company founded by David McKenna.

Vimio AB, a wholly owned subsidiary of MIS, recruited the MMU development team
which had worked together for a number of years. Since then experienced
technicians from other companies have joined Vimio AB. Vimio Plc acquired MIS
and its subsidiaries in April 2005.

Since Vimio AB was established, the team has continued to develop the
technology to include greyscale, colour video and audio and has also developed
a full media distribution platform.


The group's software provides 3G type functionality to MNOs using 2G and 2.5G
technology. The directors believe that Vimio's major competitive advantage is
that its technology, which can work on all GSM and GPRS networks, performs
better than currently available competing video compression technologies. This
results in less bandwidth usage for video downloads and video streaming
services when compared with other solutions. MNOs benefit from the group's
software, which is able to generate recurring revenue streams through
downloads, subscriptions, and data traffic. In addition, the group offers its
products as 'White Label' solutions allowing MNOs to brand Vimio technology as
their own.

The group also sources digital media content from rights holders. Using Vimio's
DRM technology, secondary distribution of content is prevented. Vimio
technology gives content providers opportunities for promotion and marketing to
the mobile phone user.

The group's technology enables customers to access media that is simple to
search, buy and download. Payment is then made through users' phone bills.

The group markets and sells its technology and services directly to handset
manufacturers, media companies and MNOs. When entering a new market, the group
seeks to target all MNOs within that area. The aim is to roll out Vimio
technology with MNOs in a particular territory and to use those relationships
to gain introductions to sister MNOs in other localities. To do this, the group
cooperates with technology companies and content providers and has established
joint ventures and strategic partnerships.

In December 2003, MTC-Vodafone (Bahrain), which has 100,000 subscribers,
selected Vimio Jukebox to deliver live TV, audio, music videos and mobile
surveillance systems. This service went live in June 2004 providing subscribers
with access to seven live TV channels.

During the past year, the group has also signed contracts with Mobile Telecom
group (EmiratesCall), Saudi Bells Company and Umniah Mobile Company, in the
Middle East, to offer over 14 million subscribers access to Vimio Jukebox and
Vimio Content Management Module. The group has also signed a contract with
Grupo Azcel, which provides services to the media and publishing arm of TV
Aztec S.A. de C.y. which is part of a group which owns the largest GSM network
in Mexico with over 21 million subscribers.

Contracts have also been entered into with EMI Music group Limited, Music
Factory Entertainment group Limited and 3rd Ear Productions Limited and the
Company is in advanced negotiations with other major record companies to enable
Vimio to resell music content.

The group has a reseller agreement with Selatra Limited, enabling the group to
resell games software. In addition, the group has recently signed a contract
with a specialist content aggregator, one of whose areas of expertise is motor
sport. This will allow Vimio Jukebox users access to live motor racing. The
group has also signed a contract with Sting Media Inc., a Seattle based media
organisation which specialises in retail point of sale distribution.

Earlier this year, Vimio AB signed a memorandum of understanding with Jiangsu
Mobile to co-operate in trials to establish whether the Vimio solutions can be
incorporated into the Jiangsu Mobile GPRS networks. The directors believe that,
on completion of successful trials, Jiangsu Mobile will adopt the Vimio
platform as its commercial video streaming platform.

Vimio AB has also signed a letter of understanding with China Telecom. Vimio AB
has undertaken to develop a mobile TV solution to run on a personal access
system and to provide the technical support. China Telecom is currently
conducting field tests which, if successful, may lead to the recommendation of
the group's technology by China Telecom to other Chinese telecom companies.

In a further development in the Asian market, one of the world's leading
handset manufacturers is evaluating the group's technology with a view to
incorporating it in its handsets.

The group's revenue comes from fixed licence fees, recurring and one off
maintenance fees, implementation fees and training fees. In addition, variable
fees also accrue from content revenue share.


The group's technology is characterised by relatively low CPU processing power,
low display resolution and large memory capability. The video encoding process
analyses the video input to discard less useful information and retain and
enhance more important features. Other Vimio proprietary techniques compress
the image further, by identifying features that don't change, or those that
occur in multiple frames, thereby avoiding the transmission of identical

Files compressed with Vimio technology experience little or none of the quality
erosion experienced when the same files are compressed with MP3 or WMA. At the
transmission rate of mobile networks (32Kbps), the quality erosion experienced
under MP3 or WMA prohibits most media files from being played on mobile
handsets without affecting clarity. Vimio technology, however, compresses media
files so that they can be played with little discernible impact on quality.

The Market

As mobile phone handset technology and data-handling capabilities improve, MNOs
are pursuing new revenue streams, designed to boost average revenue per user by
selling an increasing number of non-voice products. The group's compression
technology enables MNOs to generate such non-voice revenues by facilitating
enhanced use of data services.

An August 2004 report into Global Mobile Data Revenues by Strategy Analytics
Inc., predicts that revenues from data services globally will grow by over 200
per cent. between 2004 and 2009. Currently estimated to be US$6Ibn, total
mobile data revenues are expected to grow to US$189bn by 2009. Much of this
global revenue growth is predicted to come from gaming and entertainment
products. Strategy Analytics Inc. estimates that entertainment applications,
including music, media and sport services, will account for 28 per cent. of
global data revenues (US$52bn) by 2009.

In Western Europe, Analsys, a specialist researcher in mobile telecoms,
envisages a similar trend. Analsys predicts that mobile data revenues in Europe
for 2002 ofUS$14bn will grow to US$45bn by 2007, driven by the growing
availability of value added data products including entertainment services,
gaming, MMS messaging and 'real' ringtones. Significantly, Analsys notes that
the growth in mobile data revenue as a percentage of total revenues will
increase over the same period from 13.6 per cent. to 33 per cent.

The directors believe that the predicted increase in value creation from
information and entertainment services will be brought about by the
availability of higher-value premium content and the emergence of network
technology which will be able to deliver enhanced information and entertainment
services such as video, audio and gaming. Industry analysts Ovum notes this as
being a particularly important trend. Until recently, simple SMS-based services
created revenue mainly through traffic tariffs, but newer premium content
services are designed to generate additional revenue from the content itself.
Consequently, Ovum predicts that revenue from premium content will shift from
28 per cent. of total revenue for SMS information services available in 2003,
to 44 per cent. for the enhanced information services which will be available
in 2007. Furthermore, Ovum predicts that 61 per cent. of total revenue for
entertainment services available in 2007 will be attributable to premium

Sales and Marketing

Vimio's revenues are earned both by selling its technology and reselling
content to MNOs. The group has received an increasing number of enquiries from
MNOs seeking value added services solutions which the MNOs hope will enable
them to capture business in an increasingly competitive marketplace.

The directors believe that, with the growing importance of value added services
to MNOs, the group is well placed to address their requirements in a shorter
time frame than many of its competitors. The ability to deliver both products
and solutions speedily, is providing Vimio with a regular inflow of enquiries,
which the Company is in the process of converting to revenue generating

Content Sales

Vimio has developed important relationships with Content Aggregators. The
Company has also developed relationships with leading brand development
specialists and international media organisations. These organisations have
engaged Vimio to provide advice and guidance to ensure successful deployment of
the Company's technology. To date, Vimio personnel have been deployed on
projects in North America, the Middle East, Europe and Asia.

With part of the proceeds of the Placing, it is intended that the sales
division will be expanded and the rollout of the Vimio solutions accelerated,
with the establishment of representative offices in Dubai, Seattle and Nanjing.

Content Aggregator sales are a key area of expansion for the Company. Over the
next year the Board intends to appoint dedicated sales teams to maximise the
potential of this growing market. It is hoped to recruit dedicated industry
professionals who have a clear understanding of the industry and local
commercial customs, cultural and religious practices.


The group currently has offices in Sweden (Umea) and Ireland (Dublin). The
Company has a representative in Dubai who facilitates the Company's activities
in the Middle East. It also employs two engineers in China.

The Dublin office manages relationships with key MNOs and drives MNO sales in
the EMEA region. The office in Umea manages the group's relationships with
Content Aggregators and provides remote support for Vimio's activities in the
Middle East and China.


Key elements of the directors' strategy include increasing the customer base
and supporting MNOs in promoting content and applications to end users. It is
intended that this will be achieved by investing in a larger direct sales force
and by continuous improvement to customer targeting and effectiveness. The
Company will also concentrate on increasing the flexibility and speed of its
technology to explore new business opportunities. In addition, it intends to
leverage its DRM capability to attract more content from leading providers. The
Company intends to establish a number of Network Operation Centres based in its
key geographical regions. In the longer term, the directors intend to extend
the applications for which the Company's software can be used and to expand
further internationally.

Current Trading and Prospects

The directors have been encouraged by the progress the Company has made in
establishing its products with MNOs. As a result of these efforts, the Company
has commercially proven its products, expanded its customer base and built a
pipeline of potential business.

Since 31 December 2004, the Company has continued the development of its
relationships with MNOs and is continuing to win new contracts. The Company is
in negotiations with a number of new and existing clients which, if successful,
are expected to generate significant growth in turnover in the current period
and beyond.

The directors are confident that, following Admission, the Company will be well
positioned to take advantage of the significant opportunities available to it.


Francis Rooney (Non-executive Chairman), aged 48, is one of Ireland's
best-known businessmen and was presented with the Businessman of the Year Award
by the President of Ireland in 2000. He is a chartered accountant and was
formerly president and chief executive of Baltimore Technologies plc, a
director and chief executive of the Football Association of Ireland and a
director of the Lansdowne Road Stadium Development Company Limited.

Malachy Charles Harkin (Chief Executive Officer), aged 45, has over 20 years
experience working in Information Technology and Telecommunications. He began
his career in business development with Systems Dynamics, before taking on
sales roles in Radius Communications (Ireland) Limited and McKeown Software
Limited. In 1998 he became an executive director of Stentor pic, an Irish
telecommunications company, with responsibility for international sales,
operations strategy and capability building. Following the acquisition in 2000
of Stentor Plc by nevada limited, a company jointly owned by Energis
plc and Viridian group plc, he founded and worked as Managing Director of
Inmetex Limited, a te1ecom solutions provider, based in the Kingdom of Saudi

David Patrick McKenna (Business Development Director), aged 44, formed Mobile
Integrated Solutions Limited in September 2002, which was subsequently acquired
by Vimio. He started his career in the construction industry in Ireland and
subsequently worked in the Middle East. In 1988 he founded Worldwide
Recruitment and in 1992, he bought Marlborough Recruitment Limited, an Irish
based recruitment consultancy, out of liquidation. During the period 1992-2002,
he was Chief Executive of this business. The company achieved significant
growth during the 1990's and was floated on AIM in October 1997 as Marlborough
International Plc. ('Marlborough'). The following year, Marlborough obtained a
full listing on the London and Irish Stock Exchanges.

Sven Göte Lindahl (Göthe Lindahl) (Technology Director), aged 51, is a former
research engineer at telecoms company Ericsson AB. While at Ericsson AB, he was
part of a team that lodged thousands of patents. He worked on research projects
such as the 'Battlefield Area Communications' project, a military demonstration
project that looked at the soldier of the future and the communications that
surround him. He has worked on many other projects including the provision of
internal IP-TV to employees via Intranet. Prior to joining Ericsson, he spent a
number of years as an IT consultant.

Brían Matthew MacManus (Non-executive Director), aged 58, is a Fellow of the
Institute of Chartered Accountants in Ireland and recently retired as an
executive director of IIB Bank. He was a founder director and formerly chief
executive of IIB Homeloans Limited and remains on the board as a non--executive
director. He was a council member of IBEC (Dublin and greater Dublin region)
and a council member of Irish Mortgage Council.

Gerard Michael Nagle (Non-executive Director), aged 49, is a practitioner in
the advertising and communications industry, with over 20 years' experience of
supporting government and leading corporations in communications, finance and
consumer goods. After early experience in marketing with PJ Carroll Holdings
pIc and Sterling Winthrop, Inc., he joined Saatchi and Saatchi Advertising
Worldwide, where from 1986 to 1996, he worked in various positions, eventually
as chief executive of the Middle East area. Subsequently he was chairman and
chief executive of Arks Limited and successfully merged that agency with Euro
RSCG Worldwide Inc. He founded Corporate Connections Communications Limited,
one of Ireland's leading independent corporate affairs company, in 2004.

Reasons for and details of the Placing and use of the Proceeds

It is intended that the Placing will provide the Company with sufficient
financial resources to expand the Group's business in China, establish a data
centre and operational office in the Middle East, establish a global network
operations centre and finance pre-payments to content providers. The
pre-payment will enhance the media content catalogue which the Group can
distribute via MNOs to their customers. It is intended that the new centres
will provide the infrastructure required to support the contracts which the
Company is pursuing in those regions and the Americas. It is intended that the
global operations centre will be established in Dublin to provide 24-hour
support and back up to global operations.

The directors also intend to use part of the net proceeds of the Placing to
deploy a sales and marketing team on a global basis, to optimise the group's
sales strength and to capitalise on its technical competitive advantages and
the forecast growth in the sector. The directors further intend to use some of
the net proceeds of the placing to strengthen the media catalogue of content
which Vimio can distribute via the MNOs to their customers. The Company will
retain the balance of the net proceeds to fund ongoing technical research and
development and to provide working capital for the growth of the business.