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Vimio PLC (VIM)

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Monday 13 February, 2006

Vimio PLC

Subscription & Joint Venture


                                                             13th February 2006

                              VIMIO plc ('Vimio')                              

          Subscription at £2.50 per share by, and joint venture with,          

                       Riyada Consulting LLC. ('Riyada')                       

Riyada, a Bahrain based company, owned and managed by H.E. Shaikha Dheya Al -
Khalifa, a senior member of the Bahrain Royal Family, has agreed to subscribe
for 400,000 new Vimio Ordinary Shares of €0.05 each at £2.50 per share. The
proceeds amounting to £1,000,000 will be loaned by Vimio to Vimio Middle East
LLC, ('VME') a newly incorporated company jointly owned by Vimio and Riyada. It
is intended that the loan will be repaid from profits.

Vimio has granted a software licence to VME enabling it to exploit Vimio's
technology to provide content to mobile network operators throughout the Middle
East and North Africa. VME's head office is located in Dubai and it is intended
to establish offices in Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar
and Saudi Arabia.

VME intends to enter into revenue sharing agreements, for live TV and other
content with the many Satellite TV Channels available in the Middle East, for
delivery over existing GSM networks This strategy is intended to enable VME to
become the market leader in offering high quality live TV broadcasting and
other content to Middle Eastern mobile users, using Vimio's proprietary high
compression technology, which no competitor has. Customers will be able to
watch live TV on their handsets, without any delay in signal or interruption of
broadcasting quality. This was not possible before Vimio developed its high
compression technology.

VME also intends to exploit the Arabic and popular music market for music
downloads, videos and live radio. VME will also launch a version of Vimio's
Jukebox technology for `phones that are only able to access ringtones etc. This
will enable the end-user to search the network on his `phone thus saving VME
from considerable advertising costs.

By the time 3G handsets and 3G networks are widely used, VME expects to have
already established a large user base of subscribers which new entrants to the
market will not have. VME will be able to easily convert its already 3G
compliant products to utilise the high bandwidth of 3G networks to give superb
TV transmission quality.

Application will be made for the new shares to be admitted to AIM and dealings
are expected to commence on 14th March 2006.

For enquiries please contact:

Vimio plc

Padraic Marren +353 (0)87 6980943

John East & Partners Limited

Jeffrey Coburn +44 (0)20 7628 2200

Hansard Communications Limited

Chris Roberts/Andy Tan +44(0)20 7245 1100




                             

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