IME.L Regulatory News (IME)

20 Mar 2006 07:02

Immedia Broadcasting plc20 March 2006 20 March 2006 Immedia Broadcasting plc Contract win and impairment Contract win Immedia Broadcasting, the UK's leading provider of live tailored radio stationsfor retailers, today announces the roll out of its 'Impulse Live' radio stationinitially up to 1,000 convenience stores across Ireland. The 5-year subscriptioncontract has been signed with Alphyra, Europe's largest independent cashacceptance network operating in 19 countries and processing over 350 milliontransactions per year. The announcement follows the success of phase one when Immedia launched a trialof Ireland's 'Impulse Live' last September and has continued to broadcast todate. Alphyra aims to install the radio station in up to 3000 convenience storesin Ireland, representing over 75% of the convenience market. The new station, a version of Impulse Live tailored specifically for Irishstores, is to be delivered by broadband to help promote Alphyra's electronictransaction services. It will also promote products in store, designed to helpgrow retailers' turnover and provide an interactive medium for both staff andcustomers. The station, to be officially launched on the 3rd April, will beproduced and operated live out of Immedia's studios in Newbury. It willentertain staff and customers and focus on promoting the retailers products andelectronic transactions including Pre Paid Mobile top up, 3V - the world's firstpre-paid disposable credit voucher, utility bill payments and money transfers. Alphyra are headquartered in Dublin, with pan-European offices in the UK,France, Benelux, Germany and the Nordic Region. The business delivers paymentand prepayment solutions with confirmed universal appeal to cellular operators,content providers and merchants across Europe. John Nagle CEO of Alphyra said: "Alphyra are excited about the prospect of launching further 'Impulse' stationswith Immedia Broadcasting in its convenience stores in the UK and continentalEurope." Nick Mitchel Director of Merchant Services, Alphyra, said: "The campaigns on Impulse Live radio proved extremely successful during theinitial trails, delivering impressive sales uplifts on promoted products andservices. Alphyra is continuing to work hard in offering valuable sales andmarketing tools to the benefit of our store owners. The response from ourcustomers was extremely positive. We believe Impulse Live is a powerful channelthrough which we can add value to our stores and advertisers' products. We lookforward to further success from working with Immedia." Bruno Brookes, CEO, Immedia Broadcasting Plc said: "We are delighted to be working with an innovative company like Alphyra. Thisnew contract helps to establish the 'Impulse Live' brand as a very importantaddition to any convenience store. We are confident that we can continue todeliver a powerful and effective means of communication for Alphyra and itscustomers." Impairment Immedia is still expanding the Impulse Network but no longer supplies thehardware required free of charge. To build its broadcast base, the Companyprovided retailers with the hardware required to receive Impulse Live free ofcharge. Having borne the initial costs of creating the critical mass of storesbroadcasting Impulse Live and proving the concept, the Company is pleased thatthe success and value of the channel has now been secured. The success of theImpulse Live station with the independent retailers has underpinned the currentinterest from the larger branded chains of stores that are now signing up to theservice. The above contract win and other recent achievements validate thatinvestment. New customers now pay for the hardware as well as the licence fee. Following a meeting of the Board on 16 March 2006, and subsequent approval byits auditors, the board has decided it is appropriate to write down the carryingvalue of the Impulse Network hardware it provided to independent retailers. Theproposed impairment will be circa £450,000 for the year ending 31 December 2005and relates mostly to the Impulse Network that is installed in independentconvenience stores in the UK. As a result of this write down the carrying valueof the Company's assets will reflect their economic value more accurately andthe profitability of the Company will, as a result of the ongoing reduction inthe depreciation charge, match the Company's operating cash generation. The Board looks forward to announcing its final results at the end of March andconfirms that these will be comfortably in line with market expectations. For further information please contact: Immedia Broadcasting PlcBruno Brookes - Chief Executive 01635 572 800 Hudson SandlerNick Lyon / Sandrine Gallien 020 7796 4133 Daniel Stewart & Company PlcTom Jenkins / Marc Young 020 7776 6550 Please visit Immedia Broadcasting's website at www.immediabroadcasting.com Notes to Editors About Immedia Broadcasting Immedia Broadcasting Plc creates live, tailored radio stations for companies,including major retailers. These stations engage and educate staff andcustomers and have proved to be a powerful and instantly flexible media channelto drive sales. Existing stations are: • 'Impulse Live' UK for - Texaco - Londis - Mills - Spar - Star News • 'HSBC Live', broadcast to more than 400 banks in the UK; • 'Lloydspharmacy Live', broadcast to 1400 branches of the largest community pharmacy operator in the UK. • IKEA Live, broadcast to all IKEA stores throughout the UK About Alphyra Please visit www.alphyra.com This information is provided by RNS The company news service from the London Stock Exchange