ARTA.L Regulatory News (ARTA)

21 October 2010

Artilium plc

("Artilium" or the "Company")

Agreement with Narrowminds B.V

Artilium plc is pleased to announce that it has signed an agreement with the Dutch company NarrowMinds B.V. with the objective of setting up a new Mobile Virtual Network Enabler ("MVNE") in The Netherlands, which enables communities to launch their own mobile offering, including SIM embedded location based and presence services.

A Memorandum Of Understanding has been signed with T-Mobile to become the operating partner for the new company and the technology will be based on Artilium's market leading ARTA8 platform. Narrowminds will be responsible for marketing the new MVNE to potential customer groups, such as, regional communities, as well as small and medium sized enterprises, social communities and media companies.

The new MVNE intends to launch its services in the first half of 2011. Mobile Virtual Network Operators ("MVNO") are becoming increasingly popular as corporate entities recognise the potential to use a tailored mobile offering to increase customer loyalty and create new marketing opportunities. To date, take up of MVNOs has been restricted by the high cost associated with them which has meant they have only been economically viable for communities of 20,000 subscribers or above. However, using ARTA's technology, the new MVNE will be able to create MVNOs for communities of only 1,000 subscribers, substantially expanding the potential market place.

Maarten Bisseling, Chief Executive Officer commented:

"This is a very exciting opportunity for Artilium. The significant marketing potential associated with creating specific mobile networks for groups of clients, customers and interest groups has long been recognised by the corporate world. Recently large corporations such as Carrefour, Tesco and Red Bull have all launched their own MVNOs. The problem for smaller enterprises has been the cost has not been scaleable to smaller subscriber groups. ARTA8's technology creates a solution to this problem and we look forward to developing this exciting venture alongside our partners. It is also foreseen that the digital marketing agencies and media companies will have a growing need for this type of technology to address specific target groups and social communities."

Artilium - Notes to Editors

·; Founded in 1995, Artilium develops and sells software solutions to telecoms companies and service providers under its ARTA family of products. Its clients include BT, Vodafone Spain, Ziggo (NL), Belgacom Mobile (BE) Telenetand KPN.

·; ARTA enables telecoms companies to market to consumers in a highly targeted manner, creating packages which are tailor made to the precise requirements of small groups of subscribers such as a municipality or interest group.

·; The ability to offer a commercially viable solution for customers to sell their services to small groups (e.g. supporters of a football team), is possible using other technologies but substantially more expensive.

·; ARTA technology provides:

o A low cost solution for creating a commercial communications network for communities and companies. Used by major Mobile Virtual Network Operators and smaller Operators targeting subscriber bases of less than 1.000

o A low cost, low energy use mobile phone based alternative to GPS for movement tracking for customers ranging from haulage firms through to families wishing to know where their children are.

o A real time, low cost rerouting of calls to provide the cheapest solution to Mobile Network Operator's and Mobile Virtual Network Operators