Crawshaw Group Regulatory News (CRAW)

20 Apr 2006 16:19

Felix Group PLC20 April 2006 20 April 2006 Felix Group plc ("Felix" or "the Group") - Update Alliance and Leicester Commercial Bank plc The Group can confirm that the associated non-binding Memorandum ofUnderstanding between Felix and Alliance & Leicester Commercial Bank ("ALCB"),announced in September last year, has now lapsed. The Group will now implementits plans to become an independent cash machine ("ATM") deployer ("IAD") and isin early stage discussion with ALCB regarding the provision of cash services forits IAD operation. Felix has also successfully completed the technical testingof its MAX BOX which incorporates ATMs. New Agreements The Group also announces two new agreements; the first with MIA ATM's Limited ("MIA"). MIA procure and provide advertising space for their third partycustomers to promote their products and services. This agreement sees the Groupgranting an exclusive 5 year advertising license to MIA to enable its customersto advertise their products and services on two screens on the MAX BOX machine.The agreement is effective immediately with MIA progressively procuringadvertisers throughout 2006 as the Group begins the initial roll out phase ofthe MAX BOX. MIA will pay fixed revenue to Felix from the beginning of March2007 for MAX BOX machines it promotes, with an incremental percentage uplift ofgross advertising revenue in years 2 to 5. The agreement contains certaintermination provisions depending on the MAX BOX roll out program. The Groupdirectors believe that this fixed advertising revenue will help to begin tooffset the capital cost of the MAX BOX machines. The second agreement follows on from the Group's ongoing work in recruitingretailers and manufacturers to boost its product prizebank. This agreement seesBeefeater and Brewers Fayre (part of Whitbread Group plc) joining other wellknown UK brands in providing £10m worth of retail value for use within Felix'sprizebanks. This new agreement takes Felix's retail sponsorship quantity to £30msince the end of last year. MAX BOX Up-date The MAX BOX proposition, first unveiled as a prototype machine at the recentATEI tradeshow at Earls Court has been built, sited and technically testedduring Q1. The digital content services with e-pay Limited and DX3 TechnologiesLimited announced in January and the Broadchart Limited agreement announced atthe back end of last year have all been integrated within the first productionmodels of the MAX BOX. The first production quantity of 120 machines are currently in the process ofbeing manufactured in Korea and assembled in the UK. These machines have beenfunded out of existing cash reserves by Felix and it is intended the machinesshould be available for installation from May onwards. These machines will alsohave Sony digital photo printing services and free wireless hotspot activation. The Group has received a positive response at the ATEI tradeshow for potentialsites for the MAX BOX and work is underway to reach agreement with a number ofcompanies across various sectors to site the MAX BOX machines. Commenting Andy Egan, CEO, Felix Group plc said; "We have made remarkableprogress since the first prototype drawings in October last year. We haveresearched, designed and built both hardware and software applications. We haveintegrated and tested these services and concerted effort to deploy the MAX BOXmachines is now underway." - Ends - Enquiries:For Felix Group plc - Mike Wallwork (m) 07795613844 (O) 01565831100(e) mike@felixcorp.comPR for Felix Group plc - Holborn PR, David Bick (O) 02079295599(e) david.bick@holbornpr.co.uk Note to Editors Felix Group plc (Reuters FLX.L Bloomberg FLX LN) www.felixgroupplc.com Felix Group's ordinary shares were admitted to trading on AIM on 8 March 2004.Felix Group initially developed a new form of sales promotion through a directconsumer interactive medium called Everyone's A Winner. Felix has now combinedthis retail innovation with a traditional ATM machine and included a growingrange of digital consumer services (photo processing, mobile top-up and contentand music downloads) to form MAX BOX, a kiosk designed to dispense cash, vendsales promotions and provide additional consumer services. By utilising retailers' advertising and sales promotion budgets, Everyone's AWinner enables participants to be allocated a non-cash prize guaranteed to havea retail value of at least twice the cost of participating. This information is provided by RNS The company news service from the London Stock Exchange