Vimio PLC

Final Results


                           VIMIO PLC ("the Company")                           

                 FINAL RESULTS FOR YEAR ENDED 31 DECEMBER 2006                 

CHAIRMAN'S STATEMENT

I am pleased to report the results for the year ended 31 December 2006.

Turnover for the year was €1,375,972 (2005: €403,785). Gross profits were €
1,363,340 (2005: €391,143). This resulted in a loss before tax of €2,832,719
(2005: €2,329,108). The loss per share for the year amounted to 10.98 cents
(2005: 10.8 cents).

As previously announced, the loss for the year was higher than market
expectations. This arose primarily as a result of €1,130,000 of revenue
relating to a specific contract entered into during the 2006 financial year
being deferred to the current financial year. The board has adopted a prudent
approach to the recognition of revenues and has applied strict performance
criteria on all contracts signed by the Group which has impacted on our trading
figures for the year. However the performance criteria has now been satisfied
on the €1,130,000 of deferred revenue and this will have a positive effect on
trading figures for the first half of this year.

In addition, the Group has increased its bad debt provision to €220,000 (2005:
€20,000) and has further provided for professional fees in the amount of €
50,000.

The Middle East continues to be of strategic importance to the Group, and most
of our revenues are derived from that region. We have signed a licence
agreement with Noutique General Trading Company ("Noutique") in Kuwait which
has seen the deployment of Live TV on mobile phones to Wataniya Telecom's
(Wataniya") 1.4 million Kuwaiti subscribers. This is the first phase of the
agreement signed earlier this year between Wataniya and Noutique for the
provision of Live TV content to over 8.8 million mobile phone subscribers in
the Middle East and North Africa. Under the terms of the agreement Vimio will
receive a significant percentage of all revenues generated from the Live TV
service.

The Group's expansion in new geographical regions continues apace. In India we
have successfully completed a pilot implementation of our software with our
partner Bharti Telesoft who expect to commercially deploy the technology across
one of the largest networks in India in the second half of this year. Digicel
Group in the Caribbean launched Live TV on mobile phones in Jamaica earlier
this year and expects to roll out the service to additional islands in the near
future.

In addition, we have signed new agreements in the Ukraine and Russia and we are
currently implementing our technology as part of those agreements.

It was recently announced that Mr Brian MacManus and Mr Gothe Lindahl had
resigned as directors. We would like to thank them for their contribution and
wish them every success in the future. The Board is actively seeking to appoint
several new executive and non executive directors.

The Board is pleased with the Group's progress to date. Our product suite has
reached a level of maturity that allows us to forge ahead with our expansion
plans. The Group has a strong sales pipeline and we have identified a
significant number of new opportunities in existing and new markets. We look
forward to the future with confidence.

David McKenna
Chairman
25 June 2007


CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                                   Year ended        Year ended
                                             31 December 2006  31 December 2005
                                                                               
                                                            €                 €
                                                                               
Turnover                                            1,375,972           403,785
                                                                               
Cost of sales                                        (12,632)          (12,642)
                                                                               
Gross profit                                        1,363,340           391,143
                                                                               
Research and development costs                    (1,259,153)         (962,145)
                                                                               
Administration costs                              (3,020,372)       (1,743,381)
                                                                               
                                                  (4,279,525)       (2,705,526)
                                                                               
Operating loss                                    (2,916,185)       (2,314,383)
                                                                               
Interest receivable                                    83,685            59,210
                                                                               
Interest payable and similar charges                    (219)          (73,935)
                                                                               
Loss on ordinary activities before                (2,832,719)       (2,329,108)
taxation                                                                       
                                                                               
Taxation on ordinary activities                       (9,047)          (22,325)
                                                                               
Loss after taxation on ordinary                   (2,841,766)       (2,351,433)
activities                                                                     
                                                                               
Basic loss per share                                 (0.1098)           (0.108)

All activity is in respect of continuing operations.

CONSOLIDATED STATEMENT OF RECOGNISED GAINS AND LOSSES

                                                   Year ended        Year ended
                                             31 December 2006  31 December 2005

                                                            €                 €
                                                                               
Loss retained for the year                        (2,841,766)       (2,351,433)
                                                                               
Currency translation effect                             1,744             (674)
                                                                               
Total recognised losses for the                   (2,840,022)       (2,352,107)
financial year                                                                 

CONSOLIDATED BALANCE SHEET

                                                        As at            As at
                                             31 December 2006 31 December 2005
                                                                              
                                                            €                €
                                                                              
FIXED ASSETS                                                                  
                                                                              
Tangible assets                                       104,510          137,149
                                                                              
Financial investments                               1,448,016                -
                                                                              
                                                    1,552,526          137,149
                                                                              
CURRENT ASSETS                                                                
                                                                              
Debtors                                             2,264,629          616,782
                                                                              
Cash at bank and in hand                              630,480        3,894,203
                                                                              
                                                    2,895,109        4,510,985
                                                                              
CREDITORS                                                                     
                                                                              
Amounts falling due within one year               (1,892,709)        (701,202)
                                                                              
NET CURRENT ASSETS                                  1,002,400        3,809,783
                                                                              
TOTAL ASSETS LESS CURRENT LIABILITIES               2,554,926        3,946,932
                                                                              
CAPITAL AND RESERVES                                                          
                                                                              
Called up share capital                             1,300,007        1,280,007
                                                                              
Share premium                                       8,164,976        6,736,960
                                                                              
Merger reserve                                        460,292          460,292
                                                                              
Profit and loss account                           (7,370,349)      (4,530,327)
                                                                              
SHAREHOLDERS FUNDS                                  2,554,926        3,946,932

CONSOLIDATED CASHFLOW STATEMENT

                                                      Year ended     Year ended
                                                     31 December    31 December
                                                            2006           2005

                                                               €              €
                                                                               
Net cash outflow from operating activities           (3,314,054)    (2,601,848)
                                                                               
Returns on investment and servicing of finance                                 
                                                                               
Interest received                                         83,685         59,210
                                                                               
Interest paid                                              (219)       (73,935)
                                                                               
                                                          83,466       (14,725)
                                                                               
Taxation                                                                       
                                                                               
Corporation tax paid                                     (5,118)       (10,988)
                                                                               
Capital expenditure and financial investment                                   
                                                                               
Purchase of tangible assets                             (27,635)      (136,555)
                                                                               
Investment in financial asset                        (1,448,016)              -
                                                                               
                                                     (1,475,651)      (136,555)
                                                                               
Cash outflow before use of liquid resources and      (4,711,357)    (2,764,116)
financing                                                                      
                                                                               
Financing                                                                      
                                                                               
Capital element of finance lease payments                      -       (11,562)
                                                                               
Loan advanced to director                               (95,000)      (339,986)
                                                                               
Loans repaid by directors                                 95,000               
                                                                               
Loans advanced                                                 -        761,762
                                                                               
Loans repaid                                                   -      (761,762)
                                                                               
Issue of shares                                        1,448,016      8,247,927
                                                                               
Share issue costs                                              -    (1,230,967)
                                                                               
Net cash inflow from financing activities              1,448,016      6,665,412
                                                                               
Movement in cash                                     (3,263,341)      3,901,296

NOTES

1. The financial information set out in this announcement does not constitute
the Company's Statutory Accounts for the years ended 31 December 2006 or 2005,
but is derived from those accounts. Statutory Accounts for 2005 have been
delivered to the Companies Registration Office and those for 2006, which have
been approved by the Board of Directors, will be delivered following the
Group's Annual General Meeting. Accounting policies have been consistently
applied throughout both accounting periods. The Company's auditors have
reported on those accounts; their reports were unqualified but the audit report
on the 2006 financial statements contained the following explanatory paragraph:

Fundamental uncertainty

In forming our opinion, we have considered the adequacy of the disclosures made
in the financial statements concerning the availability of the necessary
finance to enable the group to continue to trade. Details of this fundamental
uncertainty are described in Note 1. Our opinion is not qualified in this
respect.

Note 1 to the 2006 financial statements is as following:

BASIS OF FINANCIAL STATEMENTS - GOING CONCERN

The financial statements have been prepared on a going concern basis which
assumes that the group will continue to trade for the foreseeable future.
During the year the group incurred losses after taxation of €2,841,766 and at
the balance sheet date the profit and loss account deficit was €7,370,349.

Additionally, in the five months ended 31 May 2007 the group incurred
substantial losses and received a loan advance from its Chairman to fund
activities.

The nature and stage of the group's business is such that there can be
considerable unpredictable variations in the timing of cash inflows. Subsequent
to the year end the group has reduced its workforce in Sweden and is carrying
out a review of all of its overheads to enable further cost savings to be made.

The group's plans for growth may necessitate alternative funding levels and it
is at an advanced stage of securing additional unsecured loans. The directors
have prepared projected cashflow information, which incorporates their best
estimate of the timing and value of sales revenue and consequential external
funding requirements. On the basis of these forecasts the directors expect the
group to continue to meet its liabilities as they fall due. On this basis the
directors continue to adopt the going concern basis in preparing the financial
statements. This assumes the required levels of sales revenue and forecast
external funding are achieved by the group. The financial statements do not
include any adjustments that would result should the group not generate
forecast sales revenue or raise the unsecured loans.

2. TAX ON LOSS ON ORDINARY ACTIVITIES

                                          Year ended        Year ended
                                    31 December 2006  31 December 2005
                                                                      
                                                   €                 €
                                                                      
Current taxation                                                      
                                                                      
Ireland                                          528            14,791
                                                                      
Overseas taxation                              8,519             7,534
                                                                      
                                               9,047            22,325

3. DIVIDEND

There being no distributable reserve, no dividend can be paid for the year
ended 31 December 2006.

4. LOSS PER SHARE

The calculation of the basic loss per share is based on the loss attributed to
the ordinary equity shareholders divided by the weighted average of 25,879,592
(2005: 21,841,236) ordinary shares of €0.05 each in issue. The diluted loss per
share is equivalent to the basic loss per share.

5. RECONCILIATION OF OPERATING LOSS TO NET CASHFLOW FROM OPERATING ACTIVITIES

                                              Year ended          Year ended
                                        31 December 2006    31 December 2005
                                                                            
                                                       €                   €
                                                                            
Operating loss                               (2,916,185)         (2,314,383)
                                                                            
Depreciation                                      62,979              58,115
                                                                            
Movement in debtors                          (1,647,847)           (536,882)
                                                                            
Movement in creditors                          1,187,960             189,582
                                                                            
Exchange movement                                  (961)               1,720
                                                                            
Net cash outflow from operating              (3,314,054)         (2,601,848)
activities                                                                  

6. ANALYSIS OF NET FUNDS / (DEBT)

                                       At 31         Cashflow             At 31
                                    December                           December
                                        2005                               2006
                                                                               
                                           €                €                 €
                                                                               
Cash at bank and in hand           3,894,203      (3,263,723)           630,480
                                                                               
Bank overdraft                         (382)              382                 -
                                                                               
                                   3,893,821        3,263,341           630,480

7. RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS /

(DEBT)

                                                 Year ended         Year ended
                                           31 December 2006   31 December 2005
                                                                              
                                                          €                  €
                                                                              
Movement in cash                                (3,263,341)          3,901,296
                                                                              
Cash flow from decrease in finance lease                  -             11,562
creditors                                                                     
                                                                              
Movement in net funds                           (3,263,341)          3,912,858
                                                                              
Opening net funds/(debt)                          3,893,821           (19,037)
                                                                              
Closing net funds                                   630,480          3,893,821

8. Circulation to shareholders

Copies of the Company's Annual Report will be sent to shareholders shortly with
further copies available from Vimio Plc, Block F2, Eastpoint Business Park,
Dublin, Ireland.

ENQUIRIES:

Vimio plc                                                                    
                                                                             
Padraic Marren                         Tel: +353 87 698 0943                 
                                                                             
John East & Partners Limited                                                 
                                                                             
Jeffrey Coburn/Simon Clements/Johnny   Tel: +44 (0)20 7628 2200              
Townsend