Mobile Tornado Regulatory News (MBT)

Mobile Tornado Group plc

("Mobile Tornado" or the "Company")

Interim Results

Introduction

Mobile Tornado Group plc, the leading provider of instant communication mobile applications to the enterprise market, announces its unaudited results for the six month period to 30 June 2012.

Financial Results

Turnover in the six month period to 30 June 2012 amounted to £1,004,000 (30 June 2011: £885,000). Group operating loss reduced to £458,000 (30 June 2011: £499,000 loss). After finance costs of £221,000 (30 June 2011: £189,000) and a tax credit of £101,000 (30 June 2011: £122,000) the net loss for the period was £578,000 (30 June 2011: £566,000). The net cash outflow from operating activities was £469,000 (30 June 2011: £172,000).

The Group consolidated balance sheet shows net liabilities at 30 June 2012 of £9,530,000 compared to net liabilities of £10,823,000 at 30 June 2011. Cash at bank was £21,000 at 30 June 2012 compared to £14,000 at 30 June 2011. During the period the Group received loans from InTechnology plc of £667,000 (30 June 2011: £140,000). The Directors believe that the Group has sufficient working capital for the foreseeable future given its contracted revenue, anticipated contracts and continued support from its principal shareholder, InTechnology plc.

Review of operations

The momentum we have generated in the last 12 months has continued, with the announcement today of a further contract with a Tier 1 Mobile Operator, this one based in France. This deal was secured after an extremely tough trial process, where our solution was tested by one of the world's leading technology consultancies, for its functionality, resilience and scalability. Our success in coming through this process has demonstrated once again that we own a carrier class platform, which the world's leading mobile operators are now embracing to deliver instant communication services to their customers. Our technical team has worked hard to install the solution and we expect to announce the commercial launch of services later in the year, at which point more details as to the identity of the carrier may be disclosed.

Our technical team has also been engaged during the period on installing our platform in Telcel (Mexico) and Claro (Brazil), the first two operators scheduled to launch the Push to Talk service under the American Movil umbrella. We are now very close to satisfying all the requirements of the customer, and I expect that we will be able to announce a full commercial launch before the end of the year.

We continue to explore strategic relationships with handset manufacturers and during the period announced a deal with Handheld Group, a fast growing manufacturer of rugged PDAs. As the demand for Instant Communications increases in the workplace, we expect to see an increasing number of rugged handset manufacturers looking to install the application on the device at source. We are well placed to capitalize on this trend.

We have recently opened up a new market opportunity through the partnership agreement we have signed with Cellhire, a global service provider specializing in the delivery of short term communication solutions for major global events. These events are traditionally served by Private Mobile Radio ('PMR'), a heavy duty, costly network designed for near universal coverage and availability, with very quick call set up and group communications. We have already been able to demonstrate the functionality, versatility and cost benefits of our solution compared to PMR. We look forward to developing this new channel to market with Cellhire over the coming months.

Current trading and future prospects

The announcement of our contract today with another Tier 1 mobile operator is excellent news since it further validates the trends we have seen develop in our market during the last 12 months. Mobile operators are seeking out applications that will help to grow revenues and retain customers. The increased sophistication of handsets, the reduced data tariffs and the related emergence of the workforce management sector is driving more mobile operators to explore the opportunity that Instant Communication solutions can offer.

We now have customers in every corner of the world; Mexico, Brazil, USA, Germany, France, Italy, India, South Africa, Denmark, Sweden and the UK of course. There are negotiations and trials being conducted with potential customers in several other countries. The message is that we have great momentum and an increasing pipeline of opportunity. The key requirement now, is that our customers launch the services to their own customers, and that these services are taken up in large numbers. I believe we are approaching this stage with many of them and look forward to reporting over the coming months on the results.

Peter Wilkinson

Chairman

27 September 2012

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Consolidated income statement

For the six months ended 30 June 2012

Consolidated statement of comprehensive income

For the six months ended 30 June 2012

Consolidated statement of changes in equity

For the six months ended 30 June 2012

Consolidated balance sheet

As at 30 June 2012

Consolidated cash flow statement

For the six months ended 30 June 2012

Notes to the interim report

For the six months ended 30 June 2012

1 General information

The financial information set out in this interim report does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The financial information for the year ended 31 December 2011 is an extract from the latest audited financial statements on which the auditors gave an unqualified audit report that did not contain statements under section 498 (2) or (3) of the Companies Act 2006 and which have been filed with the Registrar of Companies

2 Basis of preparation

These interim financial statements are for the six months ended 30 June 2012. They have been prepared using the recognition and measurement principles of IFRS.

The interim financial statements have been prepared under the historical cost convention.

The interim financial statements have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 December 2011. The accounting policies have been applied consistently throughout the Group for the purpose of preparation of the interim financial statements.

3 Loss per share

Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders of £578,000 (30 June 2011: £566,000, 31 December 2011: £1,092,000) by the weighted average number of ordinary shares in issue during the period of 184,953,708 (30 June 2011: 184,953,708, 31 December 2011: 184,953,708).

The adjusted basic loss per share has been calculated to provide a better understanding of the underlying performance of the Group as follows:

The loss attributable to ordinary shareholders and the weighted average number of ordinary shares for the purpose of calculating the diluted earnings per ordinary share are identical to those used for basic earnings per ordinary share. This is because the exercise of share options are anti-dilutive under the terms of IAS 33.

4 Share capital and share premium

Non-voting preference shares

Following the change of rights attaching to the preference shares on 31 December 2010, the shares are deemed to be compound financial instruments, with the debt component calculated to be £610,000 (£343,000 due after more than one year) and the £2,390,000 balance reclassified as equity. The 10% annual preference share dividend of £300,000 (2010: £300,000) has been accrued within current liabilities.

5 Cash used in operations

6 Shareholder information

The interim announcement will be published on the company's website www.mobiletornado.com on 27 September 2012.