Brave Bison Regulatory News (BBSN)

25 February, 2015

Rightster Group plc("Rightster", the "Group", or the "Company")

Business Update

Rightster Group plc (LSE AIM: RSTR), the cloud-based global video distribution and monetisation network, today provides a business update on acquisition integration, anticipated revenue growth for 2015, cash flow and new deals.

Rightster is pleased that the integration of the two businesses acquired last year, namely Base79 Limited ("Base79") and Viral Management Limited ("Viral Spiral"), is now almost complete. As expected, the Company identified material cost synergies that could be achieved following the integration. A strategic review of its global operations has led to the Company deciding to close its technology centre in Bangalore and consolidate its development activities in London to better align the Company's technology organisation. A number of roles across Europe have also been identified as no longer required. Overall, the Directors believe that these actions should result in annualised cost savings of approximately £3 million.

As reported previously, Base79 was acquired by Rightster for a total consideration of up to £50m which had a deferred element of up to £25m, payable in Q3 2015, subject to certain earn out conditions being satisfied. The current forecast range for this deferred element of the consideration is £22 million - £24 million, which may be satisfied by a combination of new equity, unsecured loan notes or cash. As part of the terms of the acquisition, Rightster is not obliged to issue shares to a vendor of Base79 if doing so would cause the shareholding of that vendor (and its concert parties) to exceed 29.99 per cent of Rightster's issued share capital.

The recently appointed new management team anticipate net revenues for 2015 to grow 80 - 100 per cent from 2014. Whilst it is expected that the tiered pricing model powered by the new software platform will contribute to these revenue streams, management consider that these benefits will likely be realised towards the end of 2015 or early 2016.

Rightster's unaudited cash balance at the end of 2014 was £8.5 million and cash flow breakeven is expected by early 2016. Further guidance for the current financial year will be provided with the Company's full, audited results for the year ended 31 December 2014, which will be released in April 2015.

Following the acquisitions of Base79 and Viral Spiral, Rightster, as anticipated, has benefitted from revenue synergies across the business with an enhanced brand offering that has won it high profile clients such as Turkish Airlines and Microsoft Lumia. The #lumiamusic campaign, developed alongside Warner Music and the Dentsu Aegis Network, sees Grammy award winning band, Clean Bandit, challenge top YouTube video bloggers across Europe to submit their own crowd-sourced versions of the video to the hit single 'Rather Be'. The partnership reinforces how brands are increasingly identifying the importance of global YouTube Network partnerships.

Content deals were also signed with British Pathé to distribute their historical film archive, and Rightster continues to expand its creator network, with the recent signing of two YouTube stars, Comedy Shorts Gamer and Wroetoshaw. Combined, they drive over 150 million YouTube views a month and further bolster the Company's overall average monthly video views, which totalled 1.5 billion in Q4 2014. Both Comedy Shorts Gamer and Wroetoshaw have over 3.4 million subscribers and the deals will see Rightster work with the YouTubers and their talent management agency, OP Talent, on their YouTube channel as well as brand solutions both on and off YouTube.

ENDS

For further information visit www.rightster.com or please contact:

About Rightster Group plc

Founded in 2011, Rightster is already the number one global multi-platform network for online video. Rightster's cloud-based software and services platform makes it simple for Content Owners and Creators, Publishers and Aggregators and Brands and Media Agencies to unlock the value of video, whether on a licenced, ad-funded, direct to consumer or paid placement basis. Rightster's network stands at over 1,950 Content Owners and over 7,500 Publishers. The Group now employs 229 staff in 11 offices across 10 countries.